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 interestso to do hereby exempts materials required for the manufacture of the final goods when imported into India, from whole of the duty of Customs leviable thereon, under 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:-
 

7.3(c) of the Export and Import Policy or Annual Advance Licence for Deemed Exports in terms of paragraph 7.2 of the Export and Import Policy 1997-2002, notified by the Government of India in the Ministry of Commerce, vide notification No.1(RE/00)/1997-2002 dated the 31st March,2001, as the case may be, (hereinafter referred to as the said licence) by the Licensing Authority for import of the said materials for the aforesaid purpose, and the said licence is produced by the importer at the time of clearance for by the proper officer of Customs.

(This condition(1) has been substituted vide Cus Ntf No.113/2002 Date 16/10/2002)

(4) that the importer produces evidence of having discharged obligation to supply goods to the satisfaction of the said Assistant Commissioner of customs or Deputy. Commissioner of Customs within a period of thirty days from the expiry of the period allowed for fulfilment of obligation to supply final goods or within such extended period as the (Assistant Commissioner of Customs or Deputy Commissioner of Customs) may allow; and

(5) that the exempt materials are utilised for the manufacture of final goods and no portion of such materials shall be loaned, transferred, sold or disposed of in any other manner:

(6) that the imports and exports are undertaken through sea ports at Mumbai, Calcutta, Cochin, Kandla, Mangalore, Marmago, Chennai, Nhave Sheva, Paradeep, Tuticorin, Visakhapatnam, Kakinada, Magdalla, Sikka, Pipavav, Jamnagar and Muldwarka or through any of the airports at Ahmedabad, Bangalore, Mumbai, Calcutta, Bhubaneshwar Coimbatore, Delhi, Hyderabad, Jaipur, Chennai, Srinagar, Trivandrum and Varanasi or through any of the Inland container Depts at Bangalore, Coimbatore, Delhi, Gauhati, Hyderabad, Kanpur, Ludhiana. Moradabad, Pimpri (Pune), Pitampur (Indore), Agra, Faridabad, Jaipur, Guntur, Nagpur, Varanasi, Surat, Jodhpur, Salem, Tirupur, Singanallur, Waluj, Malanpur, Bhatinda, Dappar (Dera Bassi), Chheharata (Amritsar), Karur, Miraj, Rewari, Bhusawal, Jamshedpur, Surajpur and Dadri or through Land Customs Stations at Jogbani, Nautanva(Sonauli), Petrapole and Mahadipur

CUS NTF NO. 63/2004 DATE 14/05/2004)

(Condition (6) has been amended vide Cus Ntf No.84/2003 Date 27/05/2003)

Provided that the Commissioner of Customs may by special order and subject to such conditions as may be specified by him, permit import and export through any other sea port, airport or Inland Container Depot or through a land Customs station.

(Second proviso has been omitted vide CUS NTF NO. 97/2003 DATE 25/06/2003)

[OLDProvided further that where the goods are delivered for export through any Inland Container Depot specified in this condition, its export shall only be permitted through the sea-ports at Mumbai, Nhava Sheva, Kandla, Chennai or Kolkata.]
(Second proviso has been inserted vide Cus Ntf No.84/2003 Date 27/05/2003)

Explanation - In this notification,
(i) "Licensing 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 authorised by him to grant a licence under the said Act;

(ii) "materials" means -

(a) raw materials, components, intermediates, consumbales. computer software and parts required for the manufacture of final goods,

(b) packing materials required for the packing of final goods to be supplied.

(iii) "final goods" means,-

No.16/2000-Customs, dated 1st March, 2000. for supply to a refinery set up under the Ninth Five Year Plan;

(i) supply of goods to any of the mega power projects (including generation and transmission) specified in List 33 appended to the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 16/2000-Customs dated the 10th March 2000 if such mega power project is ,-

(1) an inter-state thermal power plant of a capacity of 1500 MW or more; or

(2) an inter-state hydal power plant of a capacity of 500 MW or more;
- as certified by an officer not below the rank of Joint Secretary to the Government of India in the Ministry of Power;

(j) supply of goods to Talcher-II and Talcher-II transmission projects in terms of the Public Notice of the Government of India in the Ministry of Commerce No. 18 (RE:99)/1997-2000, dated the 1st July, 1999.

(k) supply of goods to Sasaram HVDC East-North Interconnector Project in terms of the Public Notice of the Government of India in the Ministry of Commerce No. 25 (RE:99) 1997-2002 dated the 28th July. 1999.

(l) supply of goods to the three OECF assisted projects, namely, Faridabad Gas based Power Project of NTPC Sirnhadri Thermal Power Project of NTPC and Bakreshwar Thermal Power Project of WBPDCL in terms of the Public Notice of the Government of India, in the Ministry of Commerce, No.30 (RE:99)-1997-2002. dated the 6th September. 1999

(m) supply of goods to the Maharashtra State Electricity Board for execution of Maharashtra Power Projects in terms of the Public Notice of the government of India in the Ministry of Commerce. No.31 (RE-99)/1997- 2002, dated the 23rd September. 1999;

(n) supply of goods to Rihand-Sasaram-Biharsharif HVDC Link back to back Station Project in terms of the Public Notice of the Government of India in the Ministry of Commerce. No.38 (RE:99)/1997-2002, dated the 5th November, 1999;

(o) supply of goods to Eastern Region System Coordination and Control (ERSC & C) Transmission Project in terms of the Public Notice of the Government of India in the Ministry of Commerce, No. 34(RE-2000)/1997-2002, dated the 15th September, 2000.

(This sub-clause has been inserted vide Cus Ntf.No.140/2000 dt.14th November,2000)

(p) supply of goods to Vindhyachal Super Thermal Power Project (STPP) Stage-II in the State of Madhya Pradesh and Kayamkulam Combined Cycle Power Project (CCPP) in the State of Kerala in terms of the Public Notice of the Government of India in the Ministry of Commerce, No.18(RE-01)/1997-2002, dated the 7th June, 2001,

(This sub-clause has been inserted vide Cus Ntf.No.121/2001 dt.19/11/2001)
(iv) "free trade zone", and "hundred percent export oriented units" have the same meaning as in Explanation 2 to sub-section (1) of section 3 of the Central Excise Act. 1994 (1 of 1944);

(v) "Export and Import Policy" means Export and Import Policy, 1997-2002, notified by the Government of India in the Ministry of Commerce vide notification number 1 (RE-99)/1997-2002, dated the 31st March. 2000.
 

Sd/-
(Sandeep Ahuja)
Under Secretary to the Government of India

(Please refer CUS CIR NO. 54/2003 DATE 25/06/2003)

(Please refer Trade Notice No. 09/2002-03 Dt. 09/09/2002)