CUS NTF NO. 32/1997 DATE 01/04/1997

This notification exempts specified goods imported under EPCG scheme
General Exemption No.76-K
Exemption to goods imported for execution of an order for jobbing.

[As amended by Notification No.1/99-Cus., dated 1-1-99; No. 50/99-Cus., dated 29-4-1999 and No.89/99-Cus., dated 6-7-1999.]

In exercise of the powers conferred by sub-section (1) of section 25 of the customs Act, 1962 (52 of 1962) in supersession of the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 81/95-Customs dated the 31st March 1995, the Central Government, being satisfied tht it is necessary in the public interest so to do, hereby exempts the goods imported into India from the whole of the duty of Customs leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely;

(i) that the goods are imported for execution of an export order place on the importer by the supplier of goods for jobbing;

(ii) that the goods so imported, including resultant products, are re-exported to the supplier of the goods or to any other person which the said supplier may specify within six months from the date of clearances or within such extened period as the Assistant Commissioner of Customs or Deputy Commisssioner of Customs may allow:

Provided that where the goods are in the nature of patterns, drawings, jigs, tools, fixtures, moulds, tackles and instruments, such goods may be allowed by the Assistant Commissioner of Customs or Deputy Commissioner of Customs to be retained subject to payment of customs duties leviable as on the date of import without allowing in any depreciation except for items specified in the negative list of import in the Export and import Policy for which the importer shall obtain and produce, necessary permission in terms of paragraph 7.12 (5) of the Export and Import Policy;

Provided further that the wastagearising during the process of jobing, as determined in terms of standard Input - Output norms published by the Government of India in the Ministry of Commerce in the Handbook of Procedure (Vol. 2) vide Public Notice no. 2/(PN)/1997-2002 dated the 31st March, 1997 and to where such Standard Input - Output norms for the resultant product have not been published, the satisfaction of the Assistant Commissioner or Deputy Commissioner of Customs and Central Excise shall be disposed off in the manner as may be specified by the said Assistant Commissioner of Customs and Central Excise.

(iii) that the goods are utilised only for the discharge of export obligation and no part there of shall be sold, loaned, transferred or otherwise used or disposed of;

(iv) that the FOB value of the resultant products exported is at least 10% more than the C.I.F. value of all goods imported in relation to the said resultant products;

Provided that where the resultant products are textile and clothing goods falling under chapters 50 to 63 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), the valve addition under this condition shall be of any positive value.

(v) that the jobbing is undertaken in accordance with the procedure set out in the Customs (Import of goods at Concessional Rate of Duty for Manufacture of Exciseable Goods) Rules, 1996.

Provided that where the jobbing is to be undertaken by or through cottage industry without being confined to any specific primises, the importer shall execute a bond with such surety or security and in such form and for such sum as may be specified by the Assistant Commissioner of customs or Deputy Commissioner of Customs, binding himself to pay on demand an amount equal to the duty leviable on the goods imported but for the exemption contained herein, respect of which the conditions specified in this notification have not been complied with together with interest at the rate of fifteen percent per annum from the date of clearance of goods.

(In above proviso bold words has been inserted vide Ntf. No. 105/2003-Cus, Dt.10/07/2003)

(vi) that the imports and exports are undertaken through sea ports at Bombay, Calcuttta, Cochin, Kandla, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep, Tuticorin and Visakhapatnam or through any of the airports at Ahmedabad, Bangalore, Bombay, Culcutta, Coimbatore, Delhi, Hyderabad, Jaipur,Srinagar, Trivandrum and Varansi or through any of the Inland Container Depots at Bangalore, Coimbatore, Delhi, Gauhati,Kanpur, Ludhiana Moradabad, Pimpri (Pune) and Pitampur (Indore);

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 sea port, airport, or Inland Container Deport or through a land customs station.

(vii) that the goods being imported are not prohibited items specified in the ITC (HS) Classification of export and imports items as declared by the Government of India, in the Ministry of Commerce.

(Condition No. (vii) has been substituted vide Customs Notification No. 89/99 dated 6-7-99)

Explanation - In this Notification, -

(i) "Export and Import Policy" means the Export and Import Policy 1 April 1997 - 31st March 2002 Published vide notification the Government of India in the Ministry of Commerce No. 1/1992-2002 dated the 31st march 1997.

(ii) "Goods" means raw materials, components, intermediates, semi-finished goods, consumables, parts, packing materials including hangers for garments, patterns, drawings, jigs, tools, fixtures, moulds, tackles, instruments, and computer hardware and software, as are directly related to the export order and supplied free of cost by the foreign buyer.

(Please refer CUS CIR NO. 18/2004 DATE 20/02/2004)
(Please refer Cus Cir No.54/2002, Dt.27/08/2002)
(Please refer Cus Cir No.26/2002 Date 16/05/2002)

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