Notification No. 53/1997, Dated 3rd June 1997

Exemption to specified goods imported for production of goods for export or for use in 100% Export-Oriented Undertakings.

3-6-1997

        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 the Table below (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 purposes of manufacture of articles for export out of India or for being used in connection with the production or packaging or job work for export of goods or services out of India or for goods for export out of India as referred to in paragraph 9.21 of the Export & Import Policy, 1997 -2002 notification by the Government of India under the Ministry of Commerce notification No. 1/97, dated the 31st March, 1997, as amended from time to time (hereafter referred to as the said Export Oriented units approved by the Board of Approvals for hundred per cent Export Oriented Units, appointed by the notification of Government of India in the Ministry of Industry, Department of Industrial Policy and Promotion or the Development Commissioner concerned as the case may be, for this purpose, (hereinafter referred to as the said Board), from the whole of 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 said Customs Tariff Act subject to the following conditions, namely :- 

(1) The imports, clearance, export, transfer and usage of the goods and goods manufactured there from and the net foreign exchange earning as a percentage of export shall be subject to the conditions of the "Export and Import Policy" 

(2) The importer has been granted necessary license for the import of the goods for the said purpose.

(3) The importer carries out the manufacture, production, packaging or job work or service in Customs bond and subject to such other conditions as may be specified by the Assistant Commissioner of Customs or Deputy Commissioner of Customs in this behalf.

(4) Importer exports out of India 100% or such other percentage, as may be fixed by the said Board, of articles manufactured wholly or partly from the goods during the period stipulated by the said Board or such extended period as may be specified by the said Board.

(5) The Assistant Commissioner of Customs or Deputy Commissioner of Customs may, subject to such conditions and limitations as he may deem fit to impose under the circumstances of the case for the proper safeguard of the revenue interest and also subject to such permission of the Development Commissioner or the Board where it is exclusively required under the said Export-Import Policy, allow any of the said unit to clear any of the said goods for being taken to any other place in India in accordance with the Export and Import Policy.

(a) such clearance of capital goods, material handling equipment, office equipment and captive power plants may be allowed on payment of an amount equal to the customs duty leviable on such goods on depreciated value thereof and the rate in force on the date of payment of such duty;

(b) such clearance of goods (including container, suitable for repeated use) other than those specified in clause (a), may be allowed on payment of customs duty on the value at the time of import and at rates in force on the date of payment of such customs duty;

(c) such clearance of used packing materials such as cardboard boxes, polyethylene bags of a kind unsuitable for repeated use may be allowed without payment of any customs duty :

        Provided that the importer shall not be eligible to avail of the exemption applicable to goods falling under heading No. 98.01 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), or the exemption available to imported goods under the Export Promotion Scheme other than the Export Promotion Capital Goods Scheme permitting import of capital goods at the rate of duty of 5% ad valorem in terms of notification in force at the time of depending.

        Explanation. - The depreciation in respect of goods covered by clause (a) shall be allowed for the period from the date of commencement of commercial production of the unit or where such goods have been imported after such commencement, from the date such goods have come into use for commercial production, up to the date of payment of duty.

        (6) The importer executes a bond in such form and for such sum and with such security or surety as may be prescribed by the Assistant Commissione