Notification No. 77/1998, Dated 16th Oct 1998

Exemption to materials imported against a Special Advance Licence with actual user condition.

16-10-1998

        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 materials imported into India, against a Special Advance Licence with Actual User Condition in terms of para 7.4 of the Export and Import Policy 1997-2002 notified by the Government of India in the Ministry of Commerce vide Public Notice No. 41 (RE-98)/1997-2002, dated the 16th September, 1998 (hereinafter referred to as the said licence), 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 leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely.

        (i) that the materials imported are covered by the said licence and an Actual User Duty Exemption Entitlement Certificate (hereinafter referred to as the said certificate), issued by the Licensing Authority in the form specified in the Schedule annexed to this notification, in respect of quantity and description;

        Provided that the value and details of the technical specifications of the materials shall be submitted by the importer to the Assistant Commissioner of Customs or Deputy Commissioner of Customs having jurisdiction in the Bill of Entry and Part 'D' of the said certificate at the time of clearance;

        (ii) that materials imported are required in export of the resultant electronic products made of the materials and the import of the materials is made prior to the export;

        (iii) that the resultant electronic products shall be manufactured only out of the materials imported under this notification.

        (iv) that the importer at the time of clearance of the imported materials executes a bond with such surety or security and in such form and for such sum as may be specified by the Assistant Commissioner of Customs or Deputy Commissioner of Customs having jurisdiction binding himself to pay on demand an amount equal to the duty leviable, but for the exemption, on the imported materials in respect of which the conditions specified in this notification have not been complied with, together with interest at the rate of twenty-four per cent per annum from the date of clearance of the said materials;

        (v) that the said licence and Part I of the said certificate are produced before the proper officer of customs at the time of clearance for debit;

        (vi) that the importer shall maintain the record of imported materials and the export products in the format as specified in the Annexure to this notification;

        (vii) the Designated Officer of the Department of Electronics (hereinafter referred to as the said officer) verifies the relevance/ useability of the imported materials in the export product as well as the quantity of such materials required for the manufacture of such export product. The said officer shall also verify the actual utilisation of the imported materials in the export product as well as the wastage in respect of export product in terms of the standard input output norms as specified in Volume II of the Hand Book of Procedure of the Export and Import Policy 1997-2002 (hereinafter referred to as the Hand Book):

        Provided that where such standard input output norms are not specified in the Hand Book for an export product, the said officer shall determine and verify the relevance/useability of the imported materials as well as the quantity of such materials required for the manufacture of such export product. The said officer shall also verify the actual utilisation of the imported materials in such export product as well as the wastage as is determined by him to be reasonable.

        (viii) that the imports and exports are undertaken through the sea ports at Mumbai, Calcutta, Cochin, Magdalla, Kakinada, Kandia, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep, Pipavav, Sikka, Tuticorin, Visakhapatnam , Dahej, Nagapattinam , Okha and Mundhra or through any of the airports at Ahmedabad, Bangalore, Bhubaneshwar, Mumbai, Calcutta, Coimbatore, Delhi, Hyderabad, Jaipur, Madras, Srinagar, Trivandrum, Varanasi, Nagpur and Cochin or through any of the Inland Container Depots at Agra, Bangalore, Coimbatore, Delhi, Faridabad, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Kanpur, Ludhiana, Moradabad, Nagpur, Pimpri (Pune), Pitampur (Indore), Surat, Tirupur and Varanasi, Nasik, Rudrapur (Nainital), Dighi (Pune), Vadodara, Daulatabad (Wanjarwadi and Maliwada), W