Notification No. 126/1994, Dated 3rd June 1994

100% E.O.Us - goods used in manufacture of export goods imported

3-6-1994

                In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts goods specified in Annexure-I to this notification (hereinafter referred to as the goods), when imported into India, or procured from a Public Warehouse or a Private Warehouse appointed or licensed, as the case may be, under section 57 or section 58 of the said Customs Act, or procured from international exhibitions held in India, for the production or manufacture of articles specified in Annexure-II for export out of India or for being used in connection with the production, manufacture or packaging of the said articles specified in Annexure-II for export out of India (hereinafter referred to as the specified purpose) by hundred per cent Export Oriented Undertakings approved by the Board of Approval for hundred per cent Export Oriented Undertakings, appointed by the notification of Government of India in the former Ministry of Industry and Civil Supplies, (Department of Industrial Development) No. S.0.163(E)/RLIU/10(2)76, dated the 3rd March, 1976 or the Development Commissioner concerned as the case may be, from the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and the additional duty, if any, leviable thereon under section 3 of the second mentioned Act, subject to the following conditions, namely :-

        (1)     the importer has been granted the necessary licence for the import of the said goods;

        (2)     the importer, at the time of import of the said goods, produces to the Assistant Commissioner of Customs or Deputy Commissioner of Customs a certificate from the Development Commissioner to the effect that the importer has executed a bond in such form and for such sum as may be prescribed binding himself-

        (a)     to bring the said goods into his unit and to use them for the specified purpose; and

        (b)     to dispose of the said goods or the articles produced, manufactured or packaged in the unit or the waste, scrap or remanents arising out of such production, manufacture or packaging in the manner as may, if any, be prescribed in the Export-Import Policy and in this notification;

        (3)     The importer at the time of import or procurement of said goods executes a bond in such form and for such sum as may be prescribed by the Assistant Commissioner of Customs or Deputy Commissioner of Customs binding himself :-

        (a)     to produce a certificate from the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise, having jurisdiction over his unit, certifying receipt of the said goods in the unit as having been entered in the records prescribed for this purpose.

        (b)     to fulfil the Export obligation and comply with the conditions stipulated in this notification and Export and Import Policy, and to pay on demand an amount equal to the duty leviable on the goods and interest at the rate of fifteen percent per annum on the said duty from the date of duty free importation or procurement of the said goods till the date of payment of such duty, if -

        (i) in the case of capital goods, such goods are not proved to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs to have been installed or otherwise used within the unit or re-exported within a period of one year from the date of importation or procurement thereof or within such extended period not exceeding five years as the Assistant Commissioner of Customs or Deputy Commissioner of Customs may on being satisfied that there is sufficient cause for not using them as above within the said period allow;

        (ii) in the case of goods other than capital goods such goods are not proved to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs to have been used in connection with the production or packaging of goods for export out of India or re-exported within a period of one year from the date of importation or procurement thereof or within such extended period as the Assistant Commissioner of Customs or Deputy Commissioner of Customs may, on being satisfied that there is sufficient cause for not using them as above within the said period allow;

        (iii) in the case o