GSR (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 when imported into India against a duty credit scrip issued under the Hi-tech Product Export Promotion Scheme in accordance with paragraph 3.11 of the Foreign Trade Policy (hereinafter referred to as the said scrip) from,-

(a) the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), and

(b) from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, 1975, subject to the following conditions, namely :-

(1) that the benefit under this notification shall be available only in respect of duty credit scrip issued against export of the products specified in the Table annexed hereto;

(2) that the said scrip is produced before the proper officer of customs at the time of clearance for debit of the duties leviable on the goods, but for this exemption:

Provided that exemption from duty shall not be admissible if there is insufficient credit in the said scrip for debiting the duties leviable on the goods, but for this exemption;

(3) that the said scrip and goods imported against it shall be freely transferable;

(4) 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, , Haldia (Haldia Dock complex of Kolkata port) and Krishnapatnam [OLDand 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 notified under section 4 of the Special Economic Zones 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, and inland container depot or through a land customs station.

(Condition (4) has been substituted vide CUS NTF NO. 19/2009 DATE 24/02/2009)

(5) that where the importer does not claim exemption from the additional duty of customs leviable under section 3 of the said Customs Tariff Act, he shall be deemed not to have availed the exemption from the said duty for the purpose of calculation of the said additional duty of customs;

(6) that the importer shall be entitled to avail of the drawback or CENVAT credit of additional duty leviable under section 3 of the said Customs Tariff Act against the amount debited in the said scrip;

(7) that the exports made by EOUs/EHTP/BTPs who do not avail of direct tax benefits or exemption shall be eligible, provided the same are not covered under the categories of exports specified in Paragraph 2;

(8) that the said scrip shall be used for import of inputs or goods including capital goods Provided that, the following items are not permitted to be debited to the said scrip;

(a) Garlic, peas and all other vegetables with a duty of more than 30% under Chapter 7 of ITC (HS) Classification of Export and Import items;

(b) Coconut, areca nut, oranges, lemon, fresh grapes, apple and pears and all other fruits with a duty of more than 30% under Chapter 8 of ITC(HS) Classification of Export and Import items;

(c) All spices with a duty of more than 30% under chapter 9 of ITC(HS) classification of Export and Import items (except cloves);

(d) Tea, coffee and pepper as per Chapter 9 of ITC(HS) Classification of Export and Import items;

(e) All Oil seeds under Chapter 12 of ITC(HS) Classification of Export and Import items;

(f) Natural Rubber as per Chapter 40 of ITC(HS) Classification of Export and Import items;

(g) Capital Goods,

(i) General-purpose agricultural tractors above 25 HP and upto 75 HP

(ii) Stationary Diesel Engines

(iii) Irrigation pumps

(iv) Threshers for cereals

(v) Combine harvesters suitable only for wheat and paddy crops

(vi) Animal driven implements.

(9) that the foreign exchange counted towards fulfilment of export obligation (over and above the average) under Export Promotion Capital Goods Scheme shall not be eligible for benefits under the scheme;

2. The following categories of exports shall not be counted for calculation of export performance or for computation of entitlement under the scheme:-

(a) export of imported goods covered under para 2.35 of the FTP in freely convertible currency;

(b) exports through transhipment, meaning thereby that exports originating in third country but transhipped through India;

(c) export turnover of Special Economic Zone units or supplies made to such units or Special Economic Zone products exported through Domestic Tariff Area units;

(d) deemed exports;

Explanation, - For the purposes of this notification,-

(i) “Goods” means any inputs, or goods including capital goods;

(ii)“Capital goods” means any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernization, technological up gradation or expansion. It also includes packaging machinery and equipment, refractories for initial lining, refrigeration equipment, power generating sets, machine tools, catalysts for initial charge, equipment and instruments for testing, research and development, quality and pollution control. Capital goods may be for use in manufacturing, mining, agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture and viticulture as well as for use in services sector.

(iii)"Foreign Trade Policy" means the Foreign Trade Policy 2004-2009, published by the Government of India in the Ministry of Commerce and Industry vide notification No.01(RE-2008)/2004-09, dated the 11th April, 2008;
 

[F. No.605/54/2008-DBK ]
 

(S.R.Meena)
Under Secretary to the Government of India