P.NO.70/2001
Imp. Supp.No.21/2001
Exp. Supp.No.21/2001
PUBLIC NOTICE NO.70/2001 DT.01/06/2001
Sub. : Employment of dredgers in Indian Coastal operations - levy of duty -reg.
Attention of Members of Trade including Importers and Custom House Agents, Steamer Agents, Dredger Operators is invited to standing Order No.7629 dated 01.06.2001 issued by this office and
Ministry"s instructions issued from F.No.450/20/99-Cus IV dated 13th March, 2001 on the above subject.
It has been made clear that in terms of Section 2(27) of the Customs Act,1962, "India" includes territorial waters of
India. Section 2(23) defines the term "import" as bringing into India from a place outside India. Therefore,
dredgers brought into the territorial waters of India for operation in territorial waters should be treated as import. On
import of such dredgers with various tools/equipment, duty as applicable is leviable unless there is specific exemption otherwise and all import
formalities are required to be completed with. In case such dredgers and various equipments / tools, etc. are re-exported, the importers can at best claim drawback under Section 74, if admissible.
As regards duty free supply of spares, stores, bunkers and lubricants to foreign
dredgers while carrying out dredging operations in Indian territorial waters, it may be noted that Section 87 provides for duty free supply of
stores/fuel, etc. to foreign going vessels. Section 2(21) defines the term "foreign going vessels" as vessels for the time being engaged in the carriage of goods
of passengers between one port in India and a port outside India. The foreign dredgers employed for dredging in Indian territorial waters, are not covered under the definition of "foreign going vessels" provided in the Act, and hence these are not entitled to duty free supply of spare, stores, bunkers and lubricants. Thus such foreign dredgers while
operating in Indian territorial waters for certain contracted period for dredging operations within the territorial waters are to be treated on a par with Indian dredgers and these should not be treated as foreign going vessels and thereby should not be extended duty free benefits to stores/fuel, etc.
Sd/-
(RAMESH RAMACHANDRA)
COMMISSIONER OF CUSTOMS (GENERAL)
MUMBAI
ATTESTED
(P.A. VASAVE)
DY. COMMISSIONER OF CUSTOMS,
PREVENTIVE (GENERAL), MUMBAI
Issued from, F.No.S/43-194/99P