CUSTOMS NOTIFICATION No.51/2000 Dated 27-4-2000

Duty Exemption Entitlement Certificate issued in response of value, quantity, quality and technical characteristics-Materials exempted
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 in terms of paragraph 7.2 of the Export and Import Policy 1997-2002 notified by the Government of India in the Ministry of Commerce vide notification No.l/1997-2002, dated the 31st March, 2000 (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 Customs Tariff Act, 1975 (51 Of 1975), and from the whole of the additional duty. safeguard duty and antildumping duty leviable thereon respectively under section 3, 8, and 9A of the said Customs Tariff` Act, subject to the following conditions, namely : -

(i) that the materials imported are covered by Duty Exemption Entitlement Certificate (hereinafter referred to as the said certificate), issued by the Licensing Authority in the form specified in the Schedule annexed to this notification, in respect of the value, quantity, description, quality and technical characteristics;

(ii) that 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 Assistant Commissioner of Customs or Deputy Commissioner of Customs binding himself to pay on demand an amount equal to the duty leviable, but for the exemption, on the imported materials in respect of which the conditions specified in this notification have not been complied with, together with interest at the rate of fifteen per cent per annum, from the date of clearance of the said materials;

(In condition (ii) bold words has been substituted vide Cus Ntf No.113/2002 Date 16/10/2002)

Provided that the bond shall not be necessary in respect of imports made after the discharge of export obligation in full.

(iii) that the said licence and the said certificate are produced before the proper officer of customs at the time of clearance for debit;

(iv) that the imports and exports are undertaken through sea ports at Mumbai, Calcutta, Cochin, Magdalla, Kakinada, kandla, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep, Pipavav, Sikka, Tuticorin, Visakhapatnam, Dahej and Nagapattinam or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Mumbai, Calcutta, Coimbatore, Delhi, Hyderabad, Jaipur, Madras, Srinagar, Trivandrum, Varanasi, Nagpur and Cochin or through any of the Inland Container Depots at Agra, Bangalore, Coimbatore, Delhi, Faridabad, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Kanpur, Ludhiana, Moradabad, Nagpur, Pimpri (Pune), Pitampur (Pune), Surat, Tirupur, Varanasi, Nasik, Rudrapur (Nainital), Dighi (Pune), Vadodara, Daulatabad, (Wanjarwadi and Maliwada), Walui; (Aurangabad), Anaparthy (Andhra Pradesh), Salem, Malanpur, Singanalur, Jodhpur, Kota, Udaipur Ahmedabad, Bhiwadi, Madurai, Bhilwara, Pondicherry and Garhi Harsaru or through the land Customs Stations at Ranaghat and Singhabad;

(In condition (iv)bold words has been amended vide Cus Ntf. No.122/2001 Date 3/12/2001.)

(Above amendments has been made 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)

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.

(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 resultant products manufactured in India which are specified in Part 'E' of the said certificate (hereinafter referred to as resultant products) and m 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) that the said licence and the materials shall not be transferred or sold

(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 for discharge of export obligation by the said merchant exporter.

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 at that 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.

Explanation, - In this notification ,

(i) "Advance Licence" means an advance license issued for, -
(a) export of goods, or
(b) supply of intermediate goods for use in resultant product;

(ii) "Export and Import Policy" means the Export and Import Policy 1997-2002, published vide notification of the Government of India in the Ministry of Commerce no. (RE-99)/1977-2002 dated the 31st March, 2000;

(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 -
(a) raw materials, components, intermediates, consumables, catalysts, computer software and parts required for manufacture of resultant product and which are incorporated in the said resultant product specified in Part E of the said certificate;
(b) mandatory spares within a value limit of 10% of the value of the licence which are required to be exported alongwith the resultant product ;
(c) fuel, oil and catalysts required for manufacture of resultant product; and
(d) packing materials required for packaging of resultant product.

THE SCHEDULE
DUTY EXEMPTION ENTITLEMENT CERTIFICATE
PART - 1
(IMPORT)
(This consists of ...................pages)

SI. No . (IMP) Date of issue

Port of registration .......................

Issued to ....................

Materials imported against licence No. (name and full address of the licencee) 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 April, 2000.

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


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

---

---

PART - B
Names and addresses of factories where the ancillaries to the resultant products are manufactured.

---

---

PART - C
List of materials of import
(a) MATERIALS TO BE IMPORTED UNDER THIS CERTIFICATE

Sl.No.	Item of import	Quality	Technical Characteristics	Quantity	CIF value in Indian Rs. and in equivalent US$	S. No. of the resultant products in Part E
1.	2.	3.	4.	5.	6.	7.

(b) OTHER IMPORTED MATERIALS TO BE USED IN EXPORT PRODUCT

Sl.No.	Description	Quality	Value
1.	2.	3.	4.

PART - D

Sl.No.	No. of the materials in Part-C	Bill of Entry No. date and Customs House of Import	Description	Quantity and net weight
1.	2.	3.	4.	5.

CIF Value	Duty leviable but for exemption Heading No. of the First Schedule to the Customs Tariff Act, 1975 and Heading No. in the Schedule to the Central Excise Tariff Act, 1985 for levy of Additional Duty.	Rate of Duty	Amount of Duty	Signature of the Customs Officer with Name, Designation and seal.
6.	7.	8.	9.	10.

(For Parts E and F, please see part 2)

PART- G

Duties paid on materials in respect of which the condition of said notification are not complied with

Sl.No.	Sl.No. in Part D under which the import of the materials has been entered.	Description, quantity and value of materials on which duty paid	Rate of duty leaviable (i) Basic (ii) Additional	Additional duty paid on import
1.	2.	3.	4.	5.

Amount of (i) Duty difference (ii) Interest	Particulars of duty paying documents	Signature of the Customs Officer
6.	7.	8.

DUTY EXEMPTION ENTITLEMENT CERTIFICATE
PART - 2
II. EXPORTS
(This consists of ..............Pages)
SI. 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 the certificate would be eligible forexemption from Basic Customs duty subject to the conditions specified in the notification of the Government of India, Ministry of Finance, Department of Revenue No. 31/97-Customs, dated the April, 2000.

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


PART - A
Names and addresses of the factories where the resultant products are manufactured.

---

---

PART - B
Names and addresses of the factories where the ancillaries to the resultant products are manufactured.

---

---

(Part C and D figures in the Imports part of this (DEEC)

PART - E
Resultant products

Sl.No.	Description	Quality	Technical Characteristics	Quantity	FOB value in Rs./US$	Sl. No. of the materials in part-C
1.	2.	3.	4.	5.	6.	7.

PART - F
Particulars of exports/supply.

Sl.No.	S.No. of the resultant product in Part E.	Name of the Customs House of Shipment	Shipping Bill No. and date	Name of the vessel and outward entry on the vessel
1.	2.	3.	4.	5.

Quantity	Net weight of the product	Description as per the Shipping Bill	FOB Value in Rs./US$	Signature of Customs Officers with name, designation and seal and remarks in any
6.	7.	8.	9.	10.

PART - H
Statement of imports and exports/supply made

     Type of licence.       licence No.           Date

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

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

Details of imports made:

Sl. No.	Sl.No. of Part C	Description	Quantity Imported	CIF value in Rs./in equivalent US$
1.	2.	3.	4.	5.

Details of Exports made:

S.No.	S.No. in Part E	Description	Quantity Imported	FOB value Rs/in equivalent US$
1.	2.	3.	4.	5.

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

2. 1/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 under this DEEC.



Signature ............................

Name of the Signatory .....................

Designation .............................

Full Address ..............................





Certificate of Chartered Accountant / Cost Accountant

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

Signature ................................

Seal .....................................

Membership No ............................



Sd/-

(Sandeep Ahuja)

Under Secretary to the Government of India

(Please refer Trade Notice No. 09/2002-03 Dt. 09/09/2002)

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