Duty Free Import Authorisation under FTP 2009-2014
[Customs Notification No. 98 dated 11th September
2009]
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 a Duty Free Import Authorisation issued in terms of paragraph 4.2.1 and 4.2.2
of the Foreign Trade Policy (hereinafter referred to as the said authorisation) 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 anti-dumping duty leviable
thereon, respectively, under sections 3, 8B and 9A of the said Customs Tariff
Act, subject to the following conditions namely :-
(i) that
the description, value and quantity of materials imported are covered by the
said authorisation and the said authorisation
is produced before the proper officer of customs at the time of clearance for
debit:
Provided that in respect of resultant product
specified in paragraph 4.32.3 of the Hand Book of Procedures (Vol.I) of the Foreign Trade Policy, the materials permitted
in the said authorisation or a duty free import authorisation for intermediate supply, as the case may be,
shall be of the same quality, technical characteristics and specifications as
the materials used in the said resultant product:
Provided further that in respect of the said
resultant product the exporter shall give declaration with regard to the
quality, technical characteristic and specifications of materials used in the
shipping bill;
(ii) that
where import takes place after fulfilment of export
obligation, the shipping bill number(s) and date(s) and quantity and Free on
Board value of the resultant product are endorsed on the said authorisation:
Provided that where import takes place before fulfilment of export obligation, the quantity and Free on
Board value of the resultant product to be exported are endorsed on the said authorisation;
(iii) that
in respect of imports made before the discharge of export obligation in full,
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 Deputy Commissioner of Customs or Assistant Commissioner of
Customs, as the case may be, binding himself to pay on demand an amount equal
to the duty leviable, but for the exemption contained
herein, on the imported materials in respect of which the conditions specified
in this notification are not complied with, together with interest at the rate
of fifteen per cent. per annum from the date of clearance of the said
materials;
(iv) that
in respect of imports made after the discharge of export obligation in full, if
facility under rule 18 (rebate of duty paid on materials used in the
manufacture of resultant product) or sub-rule (2) of rule 19 of the Central
Excise Rules, 2002 or CENVAT Credit under CENVAT Credit Rules, 2004 has been
availed, then the importer shall, at the time of clearance of the imported
materials furnish a bond to the Deputy Commissioner of Customs or Assistant
Commissioner of Customs, as the case may be, binding himself, to use the
imported materials in his factory or in the factory of his supporting
manufacturer for the manufacture of dutiable goods and to submit a certificate,
from the jurisdictional Central Excise officer within six months from the date
of clearance of the said materials, that the imported materials have been so
used:
Provided that, in case,
(a) materials
are imported against an authorisation transferred by
The Regional Authority, or
(b) the
imported materials are transferred with the permission of Regional Authority,
then the importer shall pay an amount equal to the additional duty of customs leviable on the materials so imported or transferred, but
for the exemption contained herein, together with interest at the rate of
fifteen per cent. per annum from the date of clearance of the said materials:
Provided further that no such amount shall be
payable in respect of Authorizations issued from 1.5.2006 to 31.3.2007:
Provided also that if the importer pays additional
duty of customs leviable on the imported materials
but for the exemption contained herein, then the imported materials may be
cleared without furnishing a bond specified in this condition and the
additional duty of customs so paid shall be eligible for availing CENVAT Credit
under the CENVAT Credit Rules, 2004;
(v) that
in respect of imports made after the discharge of export obligation in full,
and if facility under rule 18 (rebate of duty paid on materials used in the
manufacture of resultant product) or sub-rule 2 of rule 19 of the Central
Excise Rules, 2002 or CENVAT credit under CENVAT Credit Rules, 2004 has not
been availed and the importer furnishes proof to this effect to the
satisfaction of the Deputy Commissioner of Customs or the Assistant Commissioner
of Customs as the case may be, then the imported materials may be cleared
without furnishing a bond specified in condition (iv);
(vi) that
the imports and exports are undertaken through seaports at Bedi
(including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla,
Kolkata, Krishnapatnam, Magdalla,
Mangalore, Marmagoa, Muldwarka,
Mumbai, Mundhra,Nagapattinam, Nhava
Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar
or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Chennai,
Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad,
Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai,
Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum
and Varanasi or through any of the Inland Container Depots at Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur,
Bangalore, Bhadohi, Bhatinda,
Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar),
Coimbatore, Dadri, Dappar (Dera Bassi), Daulatabad
(Wanjarwadi and Maliwada),
Delhi, Dighi (Pune),
Durgapur (Export Promotion Industrial Park), Faridabad, Garhi
Harsaru, Gauhati, Guntur,
Hyderabad, Jaipur, Jallandhar, Jamshedpur, Jodhpur,
Kanpur, Karur, Kota, Kundli,
Loni (District Ghaziabad), Ludhiana, Madurai, Malanpur, Mandideep (District Raisen), Miraj, Moradabad,
Nagpur, Nasik, Pimpri (Pune),
Pitampur (Indore), Pondicherry, Raipur, Rewari, Rudrapur(Nainital), Salem, Singanalur, Surat, Surajpur, Tirupur, Tuticorin, Udaipur, Vadodara, Varanasi, , Waluj
(Aurangabad) or through the Land Customs Station at Agartala,
Amritsar Rail Cargo, Attari Road, Changrabandha,
Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandi or a Special Economic Zone notified under
section 4 of the Special Economic Zones Act, 2005 (28 of 2005):
Provided that the Commissioner of Customs may with
in the jurisdiction , by special order, or by a Public Notice, and subject to
such conditions as may be specified by him, permits import and export from any
other seaport or airport or inland container depot or through any land customs
station;
(vii) that
the export obligation as specified in the said authorization (both in value and
quantity terms) is discharged within the period specified in the said
authorization or within such extended period as may be granted by the Regional
Authority by exporting resultant products, manufactured in India which are
specified in the said authorization:
Provided that an Advance Intermediate authorization
holder shall discharge export obligation by supplying the resultant products to
the exporter in terms of paragraph 4.1.3 (ii) of the Foreign Trade Policy;
(viii) that
the importer produces evidence of discharge of export obligation to the
satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of
Customs, as the case may be, within a period of sixty days of the expiry of
period allowed for fulfilment of export obligation,
or within such extended period as the said Deputy Commissioner of Customs or
Assistant Commissioner of Customs, as the case may be, may allow;
(ix) 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 authorisation has been discharged in full:
Provided further that where the Bond filed under
condition (iii) against the said authorisation has
not been redeemed by the Deputy Commissioner of Customs or Assistant
Commissioner of Customs, as the case may be, the unutilised
material may be transferred to any other manufacturer except to the unit
availing the benefit of notifications, Nos. 49/03-CE and 50/03-CE both dated
10th
June,2003, 32/99-CE and 33/99-CE both dated 8th July, 1999 , 8/04-CE dated 21stJanuary,.2004,
20/07-CE dated 25th April,.2007,
56/02-CE and 57/02-CE both dated 14th November, 2002, , 71/03-CE dated 9th September,.2003, 56/03-CE dated 25th June,.2003 and 39/01-CE dated 31st July,.2001, for processing under actual user
condition after complying the central excise procedure relating to Job work;
(x) that
in relation to the said authorisation issued to a
merchant exporter,-
(a) the name and address of the
supporting manufacturer is specified in the said authorisation
and the bond required to be executed by the importer in terms of condition
numbers (iii) or (iv) as the case may be 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 and the same shall not be transferred or sold or
used for any other purpose by the said merchant exporter until the export
obligation specified in condition (vii) has been discharged in full.
2. After
discharge of export obligation as specified in condition (vii) of paragraph 1,
the Regional Authority shall permit transfer of the said authorisation
and/or the goods imported under it subject to such conditions as may be
specified.
3. Where
the materials are found defective or unfit for use, the said materials may be
re-exported back to the foreign supplier within six months from the date of clearence of the said material or such extended period not
exceeding a further period of six months as the Commissioner of Customs may
allow;
Provided that at the time of re-export the
materials are identified to the satisfaction of the Deputy Commissioner of
Customs or Assistant Commissioner of Customs, as the case may be, as the
materials which were imported.
Explanation – For the purposes of this
notification,-
(i) “Dutiable goods” means excisable goods which are not
exempt from central excise duty and which are not chargeable to ‘nil’ rate of
central excise duty;
(ii) "Foreign
Trade Policy" means the Foreign Trade Policy 2009-2014, published by the
Government of India in the Ministry of Commerce and Industry vide notification
No.1 /2009-2014, dated the 27th August 2009 as amended from time to time;
(iii) “Licensing
Authority or Regional 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 authorized by him to grant a licence under the said Act;
(iv) “Manufacture”
has the same meaning as assigned to it in paragraph 9.37 of the Foreign Trade
Policy;
(v) “Materials”
means
(a) raw
materials, components, intermediates, consumables, catalysts and parts which
are required for manufacture of resultant product;
(b) mandatory
spares within a value limit of ten per cent. of the value of the licence which are required to be exported along with the
resultant product;
(c) fuel
required for manufacture of resultant product;
(d) packaging
materials required for packing of resultant product;
[F.No.605/58/2009-DBK]