Notification No. 277/1990, Dated 12th Dec 1990

Exemption to specified goods imported for manufacture of jewellery for export by hundred per cent export-oriented undertaking.

12-12-1990

        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 the goods specified in the Annexure to this notification (hereinafter referred to as the said goods), when imported into India for the purposes of use in the manufacture of jewellery for export out of India, by or on behalf of a hundred per cent export-oriented undertaking, from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), and from the whole of the additional duty, if any, leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely :-

        (i) the importer has been authorized to establish a hundred percent export oriented undertaking for the purpose of manufacture of jewellery.

        (ii) Omitted (vide notfn.56/20001 dt.18.5.01)

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

        (iv) the importer carries out the manufacturing process or other operations in respect of jewellery in customs bond and subject to such other conditions as the Assistant Commissioner of Customs or Deputy Commissioner of Customs may, having regard to the circumstances of the case, specify in this behalf;

        (vi) the importer satisfies the Assistant Commissioner of Customs or Deputy Commissioner of Customs that the said goods shall be used in the manufacture of jewellery for export out of India;

        (vii) the importer agrees to execute a bond in such form and for such sum . and with such authority as may be specified by the Assistant Commissioner of Customs or Deputy Commissioner of Customs]binding himself to fulfil the export obligation with the prescribed Net Foreign Exchange Earnings as Percentage of Exports (NFEP) and to fulfil, inter alia, the conditions stipulated in this notification and in the Letter of Approval of Intent or the Industrial Licence issued by the Board of Approval and to pay on demand an amount equal to the duty of Customs leviable on the said goods as are not proved to the satisfaction of the Assistant Commissioner of Customs to have been used in the manufacture of the jewellery for export;

        Explanation. - For the purposes of condition (vii), duty of customs leviable on said goods in respect of gold and silver shall be limited to the duty as specified under notification of the Government of India, Ministry of Finance, Department of Revenue, No. 80/97-Customs, dated the 21st October, 1997 as amended from time to time;

        (viii) the importer agrees to bring the said goods into the said undertakings and use them within the undertaking in the manufacture of jewellery for export out of India;

        (ix) the importer agrees to export out of India all the jewellery manufactured within the said undertaking for the period stipulated by the Board of Approval or such extended period as may be specified by the Board of Approval;

        (x) on expiry of the period specified in condition (ix), the importer shall pay the following duties, namely :-

            (a) duty of customs on capital goods on depreciated value but at the rates of duty of customs in force on the date of payment of such duty;

            (b) duty of customs on raw materials and on components on the value at the time of import and at the rates of duty of customs in force at the time of clearances;

        (xi) the importer shall maintain proper account of import, consumption and utilisation of the said goods and of exports made by him and shall submit such account to the Assistant Commissioner of Customs or Deputy Commissioner of Customs, in such form, in such manner, at such intervals and within such time, as may be specified by the Commissioner of Customs;