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 issued on or after 1st April, 1997 (hereinafter referred to as the said licence), from the whole of the duty of customs leviable thereon which is specified in First Schedule to the Customs Tariff Act, 1975 (51 of 1975) 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 made vide Ntf. No.30/2001-Customs, 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. 465 (E))

(Condition No. (iv) has been substituted vide Customs NTF No. 49/99 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-poprts 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 discharge within the period specified in the said certificate or within such extended period as may be granted by the Licensing Authority or the Director General of Foreign Trade, by exporting Resultant products manufactured in India which are specified in part E of the said certificate (hereinfter referred to as Resultant products) and the said certificate together with evidence of discharge of export obligation to the satisfication of the Assistant Commissioner of Customs or Deputy Commissioner of Customs is produced within 30 days of expiry of period allowed for fulfilment of export obligation or within such extended period as the said Assistant Commissioner of Customs may allow;

Provided that an Advance Intermediate Licence holder may discharge export obligation by supplying the Resultant products to ultimate exporter in terms of paragraph 7.5 of the Export and Import Policy;

(vi) that exempt materials shall not be disposed of or utilised in any manner, except for utilisation in discharge of export obligation, before the export obligation under the said licence has been discharged in full;

Provided that Acetic Anhydride, Ephedrine, Pseudoephedrine, Vitamins, Pen-G and their derivatives in respect of which the benefit of this notification is claimed shall be utilised by the importer in his own factory or in the factory of any other manufacturer indicated in the said certificate even after discharge of export obligation;

(vii) that where benefit of this notification is sought by a person other than the licencee, such benefit shall be allowed against the said licence and that said certificate only if it bears endorsement of transferability by the licensing Authority;

Provided that benefit of this notification shall not allowed to a transferee of the licence for import of Acetic Anhydride, Edhedrine and Pseudoephedrine, 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(2) 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 has been Inserted Vide CUS NTF NO. 46/2013 DATE 26/09/2013)

Explanation - In this notification, -

(i) "Advance Licence" means an Advance Licence issued in terms of paragraph 7.3 and an Advance Intermediate Licence issued under paragraph 7.5 of the Export and Import Policy.

(ii) "Export and Import Policy" means the Export and Import Policy 1 April, 1997 - 31 March, 2002 published vide notification of the Government of India in the Ministry of Commerce No. 1 / 1997 - 2002 dated the 31st March, 1997.

(iii) "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;

(iv) "materials" means -
1.  
   (a) raw materials, 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 Pseudeiphedrine only against licences issued with the approval of Advance Licensing Committee in the office of the Director General of Foreign Trade;
   
   (b) madatory spares within a value limit of 1[10%] of the licence which are required to be exported alongwith the Resultant product; and
   
   (c) Packaging materials required for packing of Resultant product.

(This consists of ................. pages)
S. 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 Duty of Customs specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), subject to the conditions specified in the notification of the Government of India, Ministry of Finance, Department of Revenue No. ............ /97-Customs, dated the ....................

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

Signature .............................
Seal of licensing Authority ...........
Date ..................................

Name and addresses of the factories where the resultant products are manufactured.
 

Name and addresses of factories where the ancillaries to the resultant products 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 Basic Customs duty subject to the conditions specified in the notification of the Government of India, Ministry of Finance, Department of Revenue No. ............ /97-Customs, dated the ....................

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

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

Signature .............................
Seal of licensing Authority ...........
Date .......................

Name and addresses of the factories where the Resultant products are manufactured.
 

Name and addresses of factories where the ancillaries to the resultant products are manufactured.

Statement of imports and Exports / Supply made
 

Details of imports made :
 

Details of Exports made :
 

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

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. ............

We have discharged the prescribed export obligation. We request that the licence and the DEEC may please be made transferable.
 

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

DEEC is made transferable.
 

Signature
Seal of licensing authority
Date

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

(Please refer CUS NTF NO.26/2003 (NT) DATE 01/04/2003)

(Please refer Cus Ntf No.33/2002(NT) date 29/05/2002)