CUS NTF NO. 17/2009 DATE 19/02/2009

To amend the existing notification number 40/06-Cus issued under the Duty Free Import Authorization Scheme

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 makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) Number 40/2006-Customs, dated the 1st May 2006 [Vide G.S.R 260 (E), dated the 1st May, 2006], namely :-

In the said notification,-

(1) for condition number (iii) the following conditions shall be substituted, namely:-

“(iii) that in respect of imports made before the discharge of export obligation in full, 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 of Customs or Assistant Commissioner of Customs, as the case may be, binding himself to pay on demand an amount equal to the duty leviable, but for the exemption contained herein, on the imported materials in respect of which the conditions specified in this notification are not complied with, together with interest at the rate of fifteen percent per annum from the date of clearance of the said materials;

(iiia) that in respect of imports made after the discharge of export obligation in full, if facility under rule 18 (rebate of duty paid on materials used in the manufacture of resultant product) or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 or CENVAT Credit under CENVAT Credit Rules, 2004 has been availed, then the importer shall, at the time of clearance of the imported materials furnish a bond to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, binding himself, to use the imported materials in his factory or in the factory of his supporting manufacturer for the manufacture of dutiable goods and to submit a certificate, from the jurisdictional Central Excise officer within six months from the date of clearance of the said materials, that the imported materials have been so used:

Provided that, in case,

(a) materials are imported against an authorisation transferred by the Regional Authority, or

(b) the imported materials are transferred with the permission of Regional Authority,

then the importer shall pay an amount equal to the additional duty of customs leviable on the materials so imported or transferred, but for the exemption contained herein, together with interest at the rate of fifteen percent per annum from the date of clearance of the said materials:

Provided further that if the importer pays additional duty of customs leviable on the imported materials but for the exemption contained herein, then the imported materials may be cleared without furnishing a bond specified in this condition and the additional duty of customs so paid shall be eligible for availing CENVAT Credit under the CENVAT Credit Rules, 2004;

(iiib) that in respect of imports made after the discharge of export obligation in full, and if facility under rule 18 (rebate of duty paid on materials used in the manufacture of resultant product) or sub-rule 2 of rule 19 of the Central Excise Rules, 2002 or CENVAT credit under CENVAT Credit Rules, 2004 has not been availed and the importer furnishes proof to this effect to the satisfaction of the Deputy Commissioner of Customs or the Assistant Commissioner of Customs as the case may be, then the imported materials may be cleared without furnishing a bond specified in condition (iiia);”

(2) in condition (iv), for the words, figures, letters and brackets “ Special Economic Zone as specified in the notification issued under section 76A of the Customs Act,1962(52 of 1962)” the following words, figures and brackets shall be substituted, namely:-

“ a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005)”.

(3) for condition number (v), the following condition shall be substituted, namely:-

“ (v) that the export obligation as specified in the said authorization (both in value and quantity terms) is discharged within the period specified in the said authorization or within such extended period as may be granted by the Regional Authority by exporting resultant products, manufactured in India which are specified in the said authorization:

Provided that an Advance Intermediate authorization holder shall discharge export obligation by supplying the resultant products to the exporter in terms of paragraph 4.1.3 (ii) of the Foreign Trade Policy.”

(4) In the Explanation, after clause (iv), the following clause shall be inserted, namely:-

“(v) dutiable goods” means excisable goods which are not exempt from central excise duty and which are not chargeable to ‘nil’ rate of central excise duty .” .

[F. No.605/109/2006-DBK ]

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

Note :- The principal notification number 40/2006-Customs, dated the 1st May,2006 was published in the Gazette of India, Extraordinary Part II, section 3, sub-section (i) vide number GSR 260 (E), dated the 1st May,2006 and was last amended by the notification number 125/2008-Customs, dated the 21st November, 2008 published in the Gazette of India, Extraordinary Part II, Section 3, Sub-Section (i) vide GSR 816 (E), dated the 21st November, 2008.

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