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 interests to do, hereby exempts material imported into India, against an Advance Licence with Actual User Condition in terms of para 7.4 of the Export & Import Policy 1997 - 2002 notified by the Government of India in the Ministry of Commerce vide Notification No.1 / 1997-2002 dated the 31st March 1997 (hereinafter referred to as the said licence), from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Custome 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:-
 

Cus Ntf No.125/2002 Date 12/11/2002)

(Condition (iv) has been amended vide Cus Ntf. No.122/2001 Date 3/12/2001.)

(Above amendment has been vide Ntf. No.30/2001, dated 12th March, 2001.)

(Sr. No. iv has been amended vide Customs Notification No.120/2000, dt. 15-9-2000)

(Sr. No. iv has been substituted vide Corrigendum G.S.R. 466(E))

(Sr. No. (iv) has been substituted vide Customs NTF No. 51/99 Dt. 29-4-99)

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 Seaport, Airport, or Inland Container Depot or through the Land Customs Station.

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

[OLD Provided 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)

(v) That the export obligation is discharged within the period specified in the said certificate or within such extended period as may be granted by the Licensing Authority by exporting resultants products manufactured in India which are specified in part "E" of the said certificate (hereinafter referred to as resultan products) and in respect of which facility under rule 12(1)(b) or rule 13 (1) (b) of the Central Excise Rules, 1944 has not been availed in respect of materials permitted under the said licence;

(vi) That the importer produces evidence of discharge of export obligation to the satisfaction of the Assistant Commissioner of Customs or Deputy 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 Assistant Commissioner of Customs or Deputy Commissioner of Customs may allow;

(vii) Exempt materials shall not be disposed of or utillised in any manner except for utilisation in discharge of export obligation or for replenishment of such materials and the materials and the materials so replenished shall not be sold or transferred to any other person.

(viii) That in relation to an Advance Licence issued to a Merchant Exporter-

(a) the name and address of the supporting manufacturer is specified in the said licence and the said certificate and the bond required to be executed by the importer in terms of condition (ii) 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 (vii).

2 Where the goods are found defective or unfit for use the said goods may be re-exported back to the foreign supplier within 3 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 Assistant Commissioner of Customs or Deputy Commissioner of Customs as the goods which were imported.

(This para has been inserted vide Cus Ntf.No.52/2000 dt.28/04/2000)

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.

(In the Notification , Paragraph 3 shall be Inserted Vide CUS NTF NO. 46/2013 DATE 26/09/2013)

Explanation : - In this notification, -

(1) "Licensing Authority" means the Director General of Foreign Tade 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.

(2) "Materials" means :-
 

(a) raw mterials, components, intermediates, consumables, computer software and parts required for manufacture of resultant product specified in Part E of the said certificate;

Provided that the benefit of this notification shall apply to import of Acetic Anhydride, Ephedrine and Pseudoephedrine only against licenes issued with the approval of Advance Licensing Committee in the office of the Director General of Foreign Trade;

(b) mandatory spares within a value limit of 1[10%] of the value of the licence which are required to be exported alongwith the licence which are required to be exported alongwith the resultant products; and

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

(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 and covered by the list of materials specified in list (a) of Part "C" of this certificate 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 ........... 1997.

The importer shall discharge the export obligation in terms of the said notification within .............. months from the date of issue of licence.

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

Signature
Seal of licensing authority
Date

Names and addresses of the factories where the resultant products for export are manufactured.
 

Names and addresses of the factories where the ancillaries to the resultant products for export are manufactured.
 

(This consists of ........... pages)
S. No. .......... (EXP) 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 and covered by the list of materials specified in list (a) of Part "C" of this certificate 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 ............. 1997.

The licencee shall discharge the export obligation in terms of the said notification within .......... months from the date of issue of licence.

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

Signature
Seal of licensing authority
Date

Names and addresses of the factories where the Resultant products for export are manufactured.
 

Names and addresses of factories where the ancillaries to the resultant products for export are manufctured.
 

Details of imports made :
 

Details of Exports made :
 

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

2. I / We hereby declare that no benefit under rule 12(1) (b) or rule 13(1) (b) of Central Excise Rules, 1944 has been availed in respect of exports made under this DEEC.

Signature ........................
Name of the Signatory ............
Designation ......................
Full Address .....................

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

Signature ........................
Seal .............................
Membership No. ...................

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