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OFFICE OF THE COMMISSIONER OF CUSTOMS (PORT) CUSTOM HOUSE, NO.60 RAJAJI SALAI CHENNAI - 600 001
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Government
of India, Ministry of Finance, Deptt. Of Revenue, New Delhi,
Notification No.136/2008 Customs dated 24.12.2008 issued in the file
no. 605/18/2008 – DBK is reproduced below for the guidance of the Importer,
Clearing Agents and the Trading Public. Which is already available in the
website www.cbec.gov.in
ÃÖß16/
3 /2009-´Öæ. (¯Ö¢ÖÖ)
C16/ 3/2009 - AP(Port)
Custom
House, Chennai.
Dated
: 29.01.2009
sd/-
(P.VENKAT)
JOINT
COMMISSIONER OF CUSTOMS
(APPG.)
GOVERNMENT OF
INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification NO. 136 /2008-CUSTOMS
New
Delhi, the 24th December, 2008.
3 Pausa, 1930 SAKA
G.S.R.
........ (E) - 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 annexed hereto, from,-
(i)
so much of the duty of customs leviable thereon which is
specified in the First Schedule to the Customs Tariff Act, 1975
(51 of 1975) as is in excess of the amount calculated at the rate of three percent
ad-valorem, and
(ii)
the whole of the additional duty leviable thereon under section 3 of the said
Customs Tariff Act, when specifically claimed by the importer.
2.
The exemption under this notification shall be subject to the following
conditions, namely :-
(1)
that the goods imported are covered by a valid licence or valid authorization
issued under the Export Promotion Capital Goods (hereinafter referred to as
EPCG) Scheme to Common Service Providers(hereinafter referred to as CSP)
designated by the Director General Of Foreign Trade (hereinafter referred to
as DGFT) or Department of Commerce(hereinafter referred to as DOC) in Towns Of
Export Excellence (hereinafter referred to as TEE) in terms of Chapter
5 of the Foreign Trade Policy permitting import of goods at the rate of three
percent duty and the said licence or authorization is produced for debit
by the proper officer of customs at the time of clearance :
Provided that for import of spare parts specified at Sr.No.4 of the Table
annexed, the validity period of the licence or authorization shall be deemed
to be the period permitted for fulfilment of the export obligation in full.
(2)
that the authorization issued under the scheme shall have the details
of the users of the said capital goods and the quantum of the Export
Obligation(hereinafter referred to as EO) which each user would fulfil.
(3)
that the goods imported shall not be disposed of or transferred by sale or
lease or any other manner till export obligation is completed;
(4)
that the Common Service provider and each of the specific users shall
execute a bond in such form and for such sum as may be specified by the Deputy
Commissioner of Customs or Assistant Commissioner of Customs and a bank
guarantee equivalent to their portion of duty foregone in terms of export
obligation apportioned in the authorization binding themselves to
fulfil export obligation on Freight On Board(FOB) basis equivalent to eight
times the duty saved on the goods imported as may be specified on the licence
or authorization, or for such higher sum as may be fixed or
endorsed
by the Licensing Authority or Regional Authority in terms of Para 5.10 of the
Handbook of Procedures Vol I, within a period of eight years from
the date of issue of licence or authorization, in the following proportions,
namely :-
S.No.
Period from the date of licence Proportion
of total export
obligation
(1)
(2)
(3)
________________________________________________________________
1.
Block of 1st to 6th year
50%
2.
Block of 7th to 8th year
50%
Provided that where the duty saved is not less than rupees one hundred crores,
or where the licence or authorization is issued to units in the agri export
zone as may be notified by the Licensing Authority or Regional Authority, the
export obligation shall be fulfilled within a period of twelve years from the
date of issue of licence in the following proportions, namely :-
S.No
Period from the date of licence
Proportion of total export obligation
(1)
(2)
(3)
1.
Block of 1st,to 10th years
50%
2.
Block of 11th to 12th year
50%
_________________________________________________________________
Provided further that where a sick unit is notified by the Board for
Industrial and Financial Reconstruction or where a rehabilitation scheme is
announced by the concerned State Government in respect of sick unit for its
revival, the export obligation may be fulfilled within the time period allowed
as per the rehabilitation package or twelve years whichever is lower:
Provided also that where the capital goods are imported by agro units and
units in tiny and cottage sector, the export obligation shall be fixed
equivalent to six times the duty saved on the goods imported as may be
specified on the licence, or for such higher sum as may be fixed by the
licensing authority, and the export obligation shall be discharged within a
period of twelve years from the date of issue of the licence or authorization
:
Provided also that where the capital goods are imported for technological up
gradation as per conditions specified in Para 5.10 of the Foreign Trade Policy
or by small scale industry units as defined in paragraph 5.1 of the
Foreign Trade Policy, as the case may be, the export obligation shall be fixed
equivalent to six times the duty saved on the goods imported as may be
specified on the licence or authorization, or for such higher sum as
may be fixed by the Licensing Authority or Regional Authority, within a
period of eight years from the date of issue of licence subject to the further
condition that in the case of Small Scale Industry units the landed CIF value
of such imported capital goods under the scheme shall not exceed rupees fifty
lakhs and total investment in plant and machinery after such imports shall not
exceed the Small Scale Industry limit :
Provided also that export obligation of a particular block may be set off
against the excess exports made in the said preceding block(s);
(5)
that if the Authorization Holder does not claim exemption from the additional
duty leviable under section 3 of the Customs Tariff Act, 1975, the additional
duty so paid by him shall not be taken for computation of the net duty saved
for the purpose of fixation of export obligation provided the Cenvat credit of
additional duty paid has not been taken;
(6)
that the Authorization Holder and the other specific users produce
within thirty days from the expiry of each block from the date of issue of
authorization or within such extended period as the Deputy Commissioner of
Customs or Assistant Commissioner of Customs may allow, evidence to the
satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner
of Customs showing the extent of export obligation fulfilled, and where the
export obligation of any particular block is not fulfilled in terms of the
preceding condition, the Authorization Holder shall within three months
from the expiry of the said block pay duties of customs of an amount equal to
that portion of duties leviable on the goods, but for the exemption contained
herein which bears the same proportion as the unfulfilled portion of the
export obligation bears to the total export obligation together with interest
at the rate of 15% per annum from the date of clearance of the goods;
(7)
where the Authorization Holder fulfils 75% or more of the export obligation as
specified in condition (3) within half of the period specified
for export obligation as mentioned in condition (3), his balance export
obligation shall be condoned and he or they as the case may be shall be
treated to have fulfilled the entire export obligation;
(8)
that the capital goods imported, assembled or manufactured are installed in
the Common Service Provider’s factory or premises and a certificate from the
jurisdictional Deputy Commissioner of Central Excise or Assistant Commissioner
of Central Excise, as the case may be, is produced confirming installation and
use of capital goods in the Authorization Holder’s factory or premises,
within six months from the date of completion of imports or within such
extended period as the Deputy Commissioner of Customs or Assistant
Commissioner of Customs, as the case may be, may allow :
Provided that in case of import of spares, the installation certificate
shall be produced within three years from the date of import :-
Provided further that if the Authorization Holder is not registered
with central excise or if he is a service provider, as the case may be, he may
produce the said certificate of installation and usage issued by an
independent Chartered Engineer :
Provided also that agro units located in Agri Export Zones or service
providers in Agri export Zones may move the capital goods within the Agri
Export Zones under intimation to the jurisdictional Deputy Commissioner of
Central Excise or Assistant Commissioner of Central Excise, as the case may
be, subject to the condition that the Authorization Holder shall maintain
accurate record of such movement;
(9)
that the imports and exports are undertaken through sea ports at Mumbai,
Kolkata, Cochin, Magdalla, Kakinada, Kandla, Mangalore, Marmagoa, Chennai,
Nhava Sheva, Paradeep, Pipavav, Sikka, Tuticorin, Visakhapatnam, Dahej,
Mundhra, Nagapattinam, Okha, Bedi (including Rozi-Jamnagar), Muldwarka,
Porbander,Dharamtar, Vadinar, and Haldia (Haldia Dock Complex of
Kolkata port), or through any of the airports at Ahmedabad, Bangalore,
Bhubaneswar, Mumbai, Kolkata, Coimbatore, Delhi, Hyderabad, Jaipur, Chennai,
Srinagar, Trivandrum, Varanasi, Nagpur, Cochin, Rajasansi (Amritsar), Lucknow
(Amausi), Indore and Dabolim (Goa), 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, Varanasi, Nasik, Rudrapur (Nainital), Dighi
(Pune), Vadodara, Daulatabad (Wanjarwadi and Maliwada), Waluj (Aurangabad),
Anaparthy (Andhra Pradesh), Salem, Malanpur, Singanalur, Jodhpur, Kota,
Udaipur, Ahmedabad, Bhiwadi, Madurai, Bhilwara,
Pondicherry, Garhi Harsaru, Bhatinda, Dappar (Dera Bassi), Chheharata (Amritsar),
Karur, Miraj, Rewari, Bhusawal, Jamshedpur, Surajpur, Dadri, Tuticorin, Kundli,
Bhadohi, Raipur, Mandideep (District Raisen), Durgapur (Export Promotion
Industrial Park), Babarpur and Loni (District Ghaziabad) or through the
Land Customs Station at Ranaghat, Singhabad, Raxaul, Jogbani, Nautanva (Sonauli),
Petrapole, Mahadipur, Nepalganj Road, Dawki, Agartala, Sutarkhandi, Amritsar
Rail Cargo, Attari Road, Hilli, Ghojadanga and Changrabandha or a Special
Economic Zone as notified under the Special Economic Zone, Act, 2005 ( 28 of
2005).
Provided that the Commissioner of Customs may, by special order or a public
notice and subject to such conditions as may be specified by him, permit
import and export through any other sea-port, airport, inland container depot
or through a land customs station.
(10)
notwithstanding anything contained in condition (4) above, where the
Licensing Authority or Regional Authority grants extension of block-wise
period for any blocks(s) or overall period of fulfilment of Export Obligation
up to a period of two years or regularization of shortfall in Export
Obligation, not exceeding five percent of such export obligation, the said
block-wise period or overall period of Export Obligation shall be extended or
condoned by the Deputy Commissioner of Customs or Assistant Commissioner of
Customs, as the case may be :
Provided that in respect of sick units referred to in the second proviso to
condition (4) extension of overall period of Export Obligation shall not be
allowed;
Provided further that the Regional Authority may grant further extension in
the overall period of Export Obligation up to a further period of two years if
the authorization holder pays 50% of duty payable in proportionate to
the unfulfilled portion of Export Obligation to the Customs Authority and
agrees to fulfil other conditions as may be specified by the Regional
Authority for this purpose;
Provided further that the Export Obligation period shall not be extended
beyond 12 years including the original Export Obligation period of 8 years
/ 12 years as the case may be.
3. Where the goods specified in the said Table are
found defective or unfit for use, the said goods may be re-exported back to
the foreign supplier within three years from the date of payment of duty on
the importation thereof:
Provided that at the time of re-export, the goods are identified
to the satisfaction of the Deputy Commissioner of Customs or Assistant
Commissioner of Customs, as the case may be, as the goods which were imported.
Explanation – For the purpose of this notification,-
1.
“Capital goods” has the same meaning as assigned to it in Paragraph of
9.12 of the Foreign Trade Policy;
2.
Common Service Provider (CSP) means a service provider who is designated or
certified as a common service provider by the DGFT or DOC in a town of
Export Excellence
3
“Export Obligation ”, -
(i)
means obligation on the importer to export to a place outside India, goods
manufactured or capable of being manufactured or services rendered by the use
of capital goods imported in terms of this notification and it shall be over
and above the average level of exports achieved by the importer in the
preceding three licensing years for the same and similar products within the
overall export obligation period including the extended period, if any and
such average shall be the arithmetic mean of export performance in the last
three years for the same and similar products:
Provided that upto 50% of the export obligation may also be fulfilled by
export of other good(s) manufactured or service(s) provided by the importer or
his group company or managed hotel, which has the EPCG authorization subject
to the condition that in such cases, additional export obligation imposed
shall be over and above the average exports achieved by the importer or his
group company or managed hotel in preceding three years for both the original
and the substitute product(s) / service(s) :
Provided further that in case of export of goods relating to handicraft,
handlooms, cottage, tiny sector, agriculture, aqua-culture, animal husbandry,
floriculture, horticulture, pisciculture, viticulture, poultry and
sericulture, the importer shall not be required to maintain the average level
of exports :
Provided also that the goods, excepting tools, imported under this
notification by the aforesaid sectors, shall not be allowed to be transferred
for a period of five years from the date of imports even in cases where export
obligation has been fulfilled. Transfer of capital goods would, however, be
permitted within the group companies, after fulfilment of export obligation
but before five years from the date of imports, under intimation to Regional
Authority and jurisdictional Central Excise Authority:
Provided also that exports made to former USSR, or to such countries as
notified by Director General of Foreign Trade as on 31.3.08, shall not be
counted for fixing the average level of exports:
Provided also that the goods on which benefits of reward schemes under Chapter
3 of the Foreign Trade Policy are taken shall not be counted towards the
fulfilment of the export obligation :
Provided also that exports against only such shipping bills which mention the
number and date of the EPCG authorization shall be counted for the discharge
of the export obligation:
Provided also that exports counted against the authorization issued under this
notification shall not be counted towards fulfilment of other specific Export
Obligations against other EPCG authorizations;
(ii)
shall be fulfilled through physical exports and the export proceeds shall be
realized in freely convertible currency. However the following categories of
supplies, shall also be counted towards fulfilment of export obligation:
(a)
deemed exports, namely:
(1)
supply of goods against Advance Authorization or Advance Authorization for
Annual Requirement or Duty Free Import Authorization;
(2)
supply of goods to Export Oriented Units or Software Technology Parks
or Electronics Hardware Technology Parks or Bio-Technology Parks;
(3)
supply of goods to projects financed by multilateral or bilateral agencies or
Funds as notified by Department of Economic Affairs (hereinafter referred to
as DEA), Ministry of Finance (hereinafter referred to as MOF) under
International Competitive Bidding (hereinafter referred to as ICB) in
accordance with procedures of those agencies or Funds, where legal agreements
provide for tender evaluation without including customs duty; supply and
installation of goods and equipments (single responsibility of turnkey
contracts) to projects financed by multilateral or bilateral agencies or Funds
as notified by DEA, MOF under ICB, in accordance with procedures of those
agencies/Funds, where bids may have been invited and evaluated on the basis of
Delivery Duty Paid (DDP) prices for goods manufactured abroad;
(4)
supply of goods to any project or purpose in respect of which the Ministry of
Finance, by a notification, permits import of such goods at zero customs duty
and the supply is made under ICB procedure;
(5)
supply of goods to power projects and refineries not covered in (4) above
under ICB procedure;
(6)
Supply of goods to nuclear power projects through competitive bidding as
opposed to ICB;
(b)
Supply of ITA-1 items to Domestic Tariff Area, provided realization is in free
foreign exchange;
(c)Royalty
payments received in freely convertible currency and foreign exchange received
for Research and Development(R&D) services; and
(d)Payments
received in rupee terms for port handling services in terms of Chapter 9 of
the Foreign Trade Policy.
(3)
“Foreign Trade Policy” means the Foreign Trade Policy 2004-2009
published vide notification of the Government of India in the Ministry of
Commerce and Industry, No. 1/2008 dated the 11th April, 2008
as amended from time to time;
(4)
“Licensing Authority or Regional Authority” means the Director General of
Foreign Trade appointed under section 6 of the Foreign Trade (Development and
Regulation) Act, 1992 (22 of 1992) or an officer authorized by him to grant a
licence or authorization under the said Act;
(5)
“Manufacture” has the same meaning as defined in clause (f) of section 2
of the Central Excise Act, 1944 (1 of 1944).
(6)
“Towns of Export Excellence(TEE)” means a selected town producing goods of
Rs.1000 Crores or more based on potential for growth in exports. However
for TEE in Handloom, Handicraft, Agriculture and fisheries sector the
threshold limit would be Rs.250 Crores.
Table
|
Sl.No. |
Description of goods |
|
(1) |
(2) |
|
1 |
Capital goods for
pre-production, production and post production including second hand capital goods. |
|
2 |
Capital goods in Semi Knocked
Down (SKD) / Completely Knocked Down (CKD) conditions to be assembled
into capital goods by the importer. |
|
3 |
Spare parts of goods specified
at Serial Nos.1 and 2 as actually imported and required for
maintenance of capital goods so imported, assembled, or manufactured. |
|
4 |
Spare parts for the existing
plant and machinery imported under this scheme. |
[F.
No.605/18/2008-DBK ]
Sd/-
(S.R.Meena)
Under
Secretary to the Government of India.
(K.
BALA KISHAN RAJU)
ASST. COMMISSIONER OF CUSTOMS
(APPRAISING)
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