P.No. 132/2002
Import Supply No. 71/2002
Export Supply No. 71/2002

PUBLIC NOTICE NO. 132/2002 DATE 24/10/2002

Sub: Advance Rulings under Customs & Central Excise Law for foreign investors-constitution of Authority for advance rulings – reg.

Attention of all exporters, importers, CHAs, members of trade and all concerned is invited to the 1999 Budget, wherein a legislation was introduced to set up an Authority to give rulings on select Customs & Central Excise matters to meet the need of foreign investors with regard to determination of their duty liability. The relevant provisions are incorporated in Chapter V-B in the Customs Act, 1962 and Chapter IIIA in the Central Excise Act, 1944.

2. In this regard it may be informed that authority for advance Rulings, Customs & Central Excise has recently been constituted under the Chairmanship of Justice K. Venkataswami (formerly judge of the Supreme Court of India). Shri. R.K. Chakrabarti (formerly Member, CBEC), and Dr. K.N. Chaturvedi (Additional Secretary, Legislative Deptt. Ministry of Law and Justice) are other Member of the Authority. The Authority is now fully functional. The Customs (Advance Rulings) Rules, 2002 and the Central Excise (Advance Rulings) Rules, 2002 have been notified vide notification Nos. 55/2002-Customs (N.T.) and 28/2002-Central Excise (N.T.), both dated 23rd August, 2002 copies of aforesaid notification are enclosed for information.

3. The scheme of Advance Ruling allow a non-resident investor setting up a joint venture in India in collaboration with a non-resident or resident, or a resident setting up a joint venture in India in collaboration with a non-resident to seek, in advance a ruling from the Authority for Advance Rulings. This ruling can be only with respect of classification of goods, principles of valuation and applicability of duty exemption notifications, which are relevant to determine the duty liability in respect of an ‘activity’ (import, export, production or manufacture of goods) proposed to be undertaken by the venture. Advance ruling is statutorily required to be given within three months by the Authority. It will provide certainty to the duty liability of the applicant as it is binding on the jurisdictional Commissioner (subject to the law and facts remaining unchanged) and is not appealable.

4. The above provisions are brought to the notice of all concerned.

Sd/-
( A.HUSSAIN )
COMMISSIONER OF CUSTOM (IMPORT)

Encl : as above

Issued to F.No. S/26-328/02 A(G)
Reference F.No. 275/40/2002 –CX-8A

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