G. S. R . 607 (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 materials imported into India, against an Advance Licence for Annual Requirement or Advance Authorisation for Annual Requirement [OLD Advance Licence for Annual Requirement] (hereinafter referred to as the said license) with actual user condition in terms of Paragraph 4.1.10 of the Foreign Trade Policy 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,-

(1) that the said licence or authorisation[OLD said licence] shall be issued to a manufacturer exporter or merchant exporter [OLD holding Star Export House Certificate issued] by the Licensing Authority or Regional Authority[OLD Licensing authority];

(Condition (1) has been amended vide CUS NTF NO. 46/2005 DATE 17/05/2005)

(2) that the said licence or authorisation[OLD said licence] is issued for an export product group, specifying the Cost Insurance Freight Value of import permitted against it and the Free on Board Value of export obligation to be achieved. The said licence or authorisation[OLD said licence] shall be valid for import of any input required for the manufacture of export product, which is covered under the said export product group specified in the Hand Book of Procedure (Volume II) of Foreign Trade Policy;

Provided that the authorizations issued on the basis of self declaration where Standard Input Output Norms are not fixed, shall also be valid for import of inputs required for the manufacture of export products provided the authorization holder shall prove to the satisfaction of the jurisdictional Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the case may be, that an application in Aayat Niryat form along with documents specified therein has been submitted to the Director General of Foreign Trade, in terms of para 4.7 of the Hand Book of Procedure (Volume I) of Foreign Trade Policy before making the first shipment:

Provided further that in respect of the inputs specified in paragraph 4.24A(a)(i)of the Hand Book of Procedure (Volume I) of Foreign Trade Policy, the material permitted in the said authorization shall be of the same quality, technical characteristics and specifications as the materials used in the export of the resultant product:

Provided also that the exporter shall give declaration with regard to the technical characteristics, quality and specifications of materials used in the export of resultant product, in the shipping bill;

(Above provisos has been substituted vide CUS NTF. NO. 16/2009 DATE 19/02/2009)

[OLD-
Provided that in respect of the inputs specified in Paragraph 4.24A (b) of the Handbook of Procedures Vol. I of the Foreign Trade Policy, the materials permitted in the said authorisation shall be of the same quality, technical characteristics and specifications as the materials used in the export of resultant products:

Provided further that the exporter shall give declaration, with regard to the technical characteristics, quality and specifications of materials used in the export of resultant products, in the shipping bill;]

(Provisos has been inserted vide CUS NTF NO. 88/2006 DATE 31/08/2006)

(3) that where the import takes place after fulfillment of export obligation, the shipping bill number and date and quantity and free on board (FOB) value of the resultant product are endorsed on the said authorisation;

[OLD (3) that an Actual User Duty Exemption Entitlement Certificate (hereinafter referred to as the said certificate) is issued to the holder of the said licence or authorisation[OLD said licence] by the Licensing Authority or Regional Authority[OLD Licensing authority] in the form specified in the Schedule annexed to this notification. At the time of import, the full details of value, quantity, technical characteristics and other particulars, of the inputs imported against the said licence or authorisation[OLD said licence] shall be entered in part C of the Part-1 of the said certificate, as given in the Schedule to this notification, by the proper officer;]

(4) 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 Deputy Commissioner or Assistant Commissioner of Customs, 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 fifteen per cent per annum from the date of clearance of the said materials :

Provided that the bond shall not be necessary in respect of imports made after the discharge of export obligation in full;

(5) that the said licence is [OLDlicence and the said certificate are] produced before the proper officer of customs at the time of clearance for debit the quantity and value of imports;

(6) that the imports and exports undertaken through seaports 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, Dharamatar Vadinar , Haldia (Haldia Dock complex of Kolkata port) and Krishnapatnam [OLDand Haldia (Haldia Dock Complex of Kolkata Port)] [OLDand Vadinar] 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) [OLDand Indore] [OLDRajasansi (Amritsar) and Lucknow (Amausi)] 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) [OLDDurgapur ( Export Promotion Industrial Park ) and Babarpur] 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 [OLDAmritsar Rail Cargo and Attari Road] or Special Economic Zone as specified in the notification issued under section 76A of the Customs Act, 1962 (52 of 1962):

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, or Inland Container Depot or through a land customs station;

(Condition (6) has been substituted vide CUS NTF NO. 19/2009 DATE 24/02/2009)

(Condition (6) has been amended vide CUS NTF NO. 116/2007 DATE 30/11/2007)

(Condition (6) has been amended vide CUS NTF NO. 63/2007 DATE 04/05/2007)

(Condition (6) has been amended vide CUS NTF NO. 97/2005 DATE 17/11/2005)

(Condition (6) has been amended vide CUS NTF NO. 77/2005 DATE 22/08/2005)

(7) that sourcing of the imported materials from Private Bonded Warehouses set up under paragraph 2.28 of the Foreign Trade Policy would be allowed;

(8) that the export obligation is discharged within the period as specified in the said licence or authorisation[OLD said licence] or within such extended period as may be granted by the Licensing Authority or Regional Authority[OLD Licensing authority] by exporting resultant products manufactured in India and in respect of which facility under rule 18 or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 has not been availed. [OLD At the time of export, the full details of value, quantity, technical characteristics and other particulars of the resultant export product (hereinafter referred to as resultant product) shall be entered in Part E of Part 2 of the Schedule to this notification, of the said certificate by the proper officer:]

Provided that an Annual Advance Intermediate Licence holder shall discharge export obligation by supplying the resultant product to the ultimate exporter in terms of Para 4.1.3 of the Foreign Trade Policy;

(9) that the importer produces evidence of discharge of export obligation to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, within a period of 30 days of the expiry of period allowed for fulfilment of export obligation, or within such extended period as the said Deputy Commissioner of Customs or Assistant Commissioner of Customs, may allow;

(10) that the exempt materials shall not be disposed of or utilised in any manner except for utilization in discharge of export obligation or for replenishment of such materials and the materials so replenished shall not be sold or transferred to any other person;

Provided further that where the Bond filed under condition (4) against the said licence or authorisation[OLD said licence] has been redeemed by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, the unutilised material may be transferred to any other manufacturer except to the unit availing the benefit of notifications, 49/03-CE and 50/03-CE both dated 10.6.03, 32/99-CE dated 8.7.1999, 33/99-CE dated 8.7.1999, 8/04-CE dated 21.1.2004, 20/07-CE dated 25.4.2007,56/02-CE dated 14.11.2002,57/02-CE dated 14.11.2002, 71/03-CE dated 9.9.2003, 56/03-CE dated 25.6.2003 , 39/01-CE dated 31.7.2001 for processing under actual user condition after complying the central excise procedure relating to Job work.

(Condition (10) has been amended vide CUS NTF NO. 86/2008 DATE 16/07/2008)

(Conditions (6) & (10) has been amended vide CUS NTF NO. 70/2008 DATE 19/05/2008)

(Conditions (6) & (10) has been amended vide CUS NTF NO. 46/2005 DATE 17/05/2005)

(11) that in relation to the said license issued to a manufacturer exporter or merchant exporter,-

(a) the name and address of the supporting manufacturer is specified in the said licence or authorisation[OLD said licence] and the said certificate and the bond required to be executed by the importer in terms of condition (4) shall be executed jointly by the Merchant Exporter and the supporting manufacturer binding themselves jointly and severally to comply with the conditions specified in this notification; and

(b) exempt materials are utilised in the factory of such supporting manufacturer in terms of condition (10).

(2). Notwithstanding anything contained in the notification, the actual user condition specified in condition numbers (8) and (10) shall not be applicable in respect of authorisation issued for import of raw sugar for imports made from 17th February, 2009 till 30th September, 2009 and the export obligation may also be fulfilled by procuring white sugar from any other factory with effect from the 17th February, 2009.

(Paragraph 2 has been inserted vide CUS NTF NO. 22/2009 DATE 02/03/2009)

(3). In a case of default in export obligation, when the duty on goods is paid to regularise the default, the amount of interest paid by the importer shall not exceed the amount of duty if such regularisation has been dealt in terms of Public Notice of the Government of India in the Ministry of Commerce No. 22 (RE-2013)/2009-2014 dated the 12th August, 2013.

(Paragraph 3 has been inserted vide CUS NTF NO. 46/2013 DATE 26/09/2013)

Explanation.- For the purposes of this notification,-

(i) “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. 1/2004, dated the 31st August, 2004 as amended from time to time;

(ii) “Licensing Authority or Regional Authority[OLD 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 authorized by him to grant a licence under the said Act;

(iii) “Materials” means -

(a) raw materials, components, intermediates, consumables, catalysts, computer software and parts which are required for manufacture of resultant product;

(b) mandatory spares within a value limit of 10 percent of the value of the licence which are required to be exported alongwith the resultant product;

(c) packaging materials required for packing of resultant product.

(iv) “manufacture” has the same meaning as assigned to it in paragraph 9.37 of the Foreign Trade Policy.

[OLD

(This consists of………Pages) Sl.No………(IMP) Date of issue…….. Port of Registration………..issued to………..(name and full address of the licencee).

Materials imported against licence No……..dated…….issued by….to the above licencee would be eligible for exemption from customs duties subject to the conditions specified in the notification of the Government of India, Ministry of Finance and Company Affairs, Department of Revenue No…….Customs, dated the …………….

Bond with security/surety in terms of the said notification shall be executed before clearance of the goods from the Customs.
 

(a) MATERIALS TO BE IMPORTED UNDER THIS CERTIFICATE
 

(b) OTHER IMPORTED MATERIALS TO BE USED IN EXPORT PRODUCT

(EXPORT) (This consists of……………………pages)
Sl.No…………..(EXP) date of issue…………………………
Issued to………………………………………………….
……………………………………….(name and full address of the licencee).

Materials imported against Licence No…….dated…..issued by….to the above licencee would be eligible for exemption from customs duties subject to the conditions specified in the notification of the Government of India, Ministry of Finance, Department of Revenue No…..Customs, dated the…..

A Bond with surety/security in terms of the said notification, shall be executed before clearance of the goods from the Customs.
 

Details of imports made:

Details of Exports made :

I/We hereby declare that information given in this statement is correct.

I/We hereby declare that no benefit under rule 18and Rule 19 (2) of Central Excise Rules, 2002 has been availed in respect of exports made under this DEEC.
 

I have examined the applicant firm’s actual imports and exports as given above and find them as correct.
 

(Opening paragraph, in whole notification the words "said licence" and "licensing authority" & Conditions 3,5,6,8 has been substituted & schedule has been omitted vide CUS NTF NO. 43/2006 DATE 05/05/2006)

[ F. No. 605/40/2004-DBK ]

( H.K. PRASAD)
Under Secretary to the Government of India.

(Please refer CUS CIR NO. 16/2006 DATE 09/05/2006)