1311 GENERAL EXEMPTION NO.96 SINGAPORE - CBIC

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GENERAL EXEMPTION NO.96

SINGAPORE - RULES FOR DETERMINING THE "ORIGINOF PRODUCTS" ELIGIBLE FOR THE PREFERENETIAL TARIFFCONCESSIONS FOR TRADE BETWEEN INDIA AND SINGAPORE

[Notifn. No. 59/2005-Cus.(NT), dt. 20.7.2005]

In exercise of the powers conferred by sub-section (I) of section 5 of the CustomsTariff Act, 1975(51 of 1975), the Central Government hereby makes the following rules, namely:-

1. Short Title and Commencement

(1) These Rules may be called ‘Rules of Origin’ for determining the origin of products eligible for thepreferential tariff concessions pursuant to Comprehensive Economic Cooperation Agreement be-tween Republic of India and Republic of Singapore (hereinafter referred to as ‘the Agreement), thefollowing Rules shall apply;

(2) They shall come into force on the 1st day of August 2005

2. Definitions

For the purposes of this Chapter:

(i) carrier refers to any vehicle for air, sea, and land transport;

(ii) CIF price or CIF value refers to the price actually paid or payable to the exporter for the good when thegood is loaded out of the carrier, at the port of importation. The price value includes the cost of the good,insurance and freight necessary to deliver the good to the named port of destination;

(iii)Customs Valuation Agreement means the WTO Agreement on Implementation of Article VII of theGeneral Agreement on Tariffs and Trade 1994;

(iv)FOB price or FOB value refers to the price actually paid or payable to the exporter for the good whenthe good is loaded onto the carrier at the named port of exportation. The value includes the cost of the goodand all costs necessary to bring the good onto the carrier;

(v) generally accepted accounting principles refers to the recognised consensus or substantial authoritativesupport in the territory of a Party at a particular time as to which economic resources and obligations shouldbe recorded as assets and liabilities, which changes in assets and liabilities should be recorded, how theassets and liabilities and changes in them should be measured, what information should be disclosed andhow it should be disclosed, and which financial statements should be prepared. These standards may bebroad guidelines of general application as well as detailed practices, and procedures;

(vi) Harmonised System means the Harmonised Commodity Description and Coding System;

(vii) identical and interchangeable materials means materials being of the same kind and commercialquality, possessing the same technical and physical characteristics, and which once they are incorporatedinto the finished product cannot be distinguished from one another for origin purposes by virtue of anymarkings etc;

GENERAL EXEMPTION NO. 96

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(viii) indirect material means a good used in the production, testing or inspection of a good but notphysically incorporated into the good, or a good used in the maintenance of buildings or the operationof equipment associated with the production of a good, including:

(a) fuel and energy;(b) tools, dies, and moulds;(c) parts and materials used in the maintenance of equipment and buildings;(d) lubricants, greases, compounding materials, and other materials used in production

or used to operate equipment and buildings;(e) gloves, glasses, footwear, clothing, safety equipment, and supplies;(f) equipment, devices, and supplies used for testing or inspecting the goods;(g) catalysts and solvents; and

any other goods that are not incorporated into the good but whose use in the production of the goodcan reasonably be demonstrated to be part of that production;

(ix) material means ingredients, raw materials, parts, components, subassemblies and goods that werephysically incorporated into another good or were subject to a process in the production of another good;

(x) non-originating material used in production means any material whose country of origin is other thanthe Parties (imported non-originating) and any material whose origin cannot be determined (undeterminedorigin);

(xi) originating material means a material that fulfils the criteria set out in either Rule 4 or Rule 5.

(xii) production means methods of obtaining goods including manufacturing, producing, assembling,processing, raising, growing, breeding, mining, extracting, harvesting, fishing, trapping, gathering, collecting,hunting and capturing.

3. Originating Goods

For purposes of this Agreement, products shall be deemed originating and eligible for preferentialtreatment if they are consigned according to Rule 15 and conform to the origin requirement under any of thefollowing conditions:

(a) Products wholly produced or obtained in the territory of the exporting Party, in accordancewith Rule 4; or

(b) Products not wholly produced or obtained in the territory of the exporting Party, providedthat the said products are eligible under Rule 5.

4. Wholly Obtained or Produced

For the purposes of this Agreement, goods wholly obtained or produced in the territory of aParty shall be treated as originating goods of that Party. The following goods only shall be considered asbeing wholly obtained or produced in a Party:


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(a) a raw or mineral good 4-1/product extracted from its soil, waters, seabed, or beneath theseabed;

(b) a vegetable good 4-2 harvested or produced there;(c) an animal born and raised there;(d) a good obtained from animals referred to in (c) above;(e) a good obtained from hunting, trapping, fishing or aquaculture conducted there;(f) a good of sea fishing and other marine goods taken from outside its territory/territorial

waters and Exclusive Economic Zone (EEZ) by vessels registered with a Party and flyingits Flag;

(g) a good processed and/or made on board factory ships registered with a Party and flying itsFlag exclusively from products referred to in paragraph (f) above;

(h) a good taken by a Party, or a person of a Party, from the sea bed or beneath the sea bedoutside the territorial waters/sea of that Party, in accordance with the provisions of theUnited Nations Convention on the Law of the Sea;

(i) articles collected there which can no longer perform their original purpose nor are capableof being restored or repaired and are fit only for disposal or recovery of parts or raw mate-rials, or for recycling purposes 4-3; and

(j) a good produced there exclusively from goods referred to in (a) through (i), or from theirderivatives, at any stage of production.

5. Not Wholly Obtained or Produced

1. Within the meaning of paragraph (b) of Rule 3 and subject to the provisions of Rule 7, 10 and thatthe final process of manufacturing is performed within the territory of the exporting Party, products wouldbe considered as originating if:(a) (i) the total value of the materials, parts or produce originating from countries other than the

Parties or of undetermined origin used in the manufacture of the product does not exceed60% of the FOB value of the product so produced or obtained; and,

(ii) the product so produced or obtained is classified in a heading, at the four digit level, of theHarmonised System different from those in which all the non-originating materials used inits manufacture are classified; or

(b) the product satisfies the Product Specific Rules as specified in Annex B.

2. For the purposes of calculating the local value added content, either of the following methods canbe applied:

(a) Direct MethodValue of Direct DirectOriginating + Labour + Overhead + Profitmaterials Cost Cost x 100% > 40%

FOB Price

4-1 Includes mineral fuels, lubricants and related materials as well as mineral or metal ores.4-2 Includes agricultural and forestry products.4-3 This would cover all waste and scrap, including waste and scrap resulting from manufacturing or processing operation or consumption in thesame Party, scrap machinery, discarded packaging and all products that can no longer perform the purposes for which they were produced and arefit only for disposal for the recovery of parts or raw materials. Such manufacturing or processing operations shall include all types of processing notonly industrial or chemical but also mining, agriculture, construction, refining, incineration and sewage treatment operations.

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(b) Indirect Method

Value of Non-originating materials 4-4x 100 % < 60%

FOB Price

3. For the purpose of paragraph 2, if the material does not satisfy the requirements of paragraph 1, thenon-qualifying value of the materials shall be that proportion which cannot be attributed to one or both ofthe Parties, provided that the requirements of Rule 7 at each stage of value accumulation are satisfied.

6. Indirect Materials

In order to determine whether a product originates in the territory of a Party, any indirect materialused to obtain such products shall be treated as originating whether such material originates in third coun-tries or not, and its value shall be the cost registered in the accounting records of the producer of the good.

7. Insufficient Operations

1. The following operations or processes shall not be considered as sufficient transformation providedfor in Rule 5:

(a) operations to ensure the preservation of products in good condition during transport and storage(such as drying, freezing, keeping in brine, ventilation, spreading out, chilling, placing in salt, sul-phur dioxide or other aqueous solutions, removal of damaged parts, and like operations);

(b) simple operations consisting of removal of dust, sifting or screening, sorting, classifying, matching(including the making-up of sets of articles), washing, painting, cutting;

(c) changes of packing and breaking up and assembly of consignments;(d) simple cutting, slicing and repacking or placing in bottles, flasks, bags, boxes, fixing on cards or

boards, and all other simple packing operations;(e) affixing of marks, labels or other like distinguishing signs on products or their packaging;(f) simple mixing of products whether or not of different kinds, where one or more components of the

mixture do not meet the conditions laid down in this Chapter to enable them to be considered asoriginating products;

(g) simple assembly of parts of products to constitute a complete product;(h) disassembly;(i) slaughter of animals;(j) mere dilution with water or another substance that does not materially alter the characteristics of the

goods; and(k) a combination of two or more operations referred to in paragraphs (a) to (j).

8. Value of Non-originating Materials

The value of a non-originating material used in the production of a good shall be:

(a) For imported materials, parts or produce, the CIF value at the time of importation determined inaccordance with the Agreement on Customs Valuation; and/or

4-4 As defined in Rule 2._______________________________________________________________________________________


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(b) For materials, parts or produce of undetermined origin, the earliest price as ascertained by thecertifying authority to have been paid for in the territory of the Party where the working or process-ing takes place.

9. Determination of Origin

No product shall be deemed to be a produce or manufacture of either Party unless the conditionsspecified in these rules are complied with in relation to such products, to the satisfaction of the authorityissuing the certificate of origin.

10. Accumulation

1. A product manufactured in one Party and used in the territory of the other Party as a material for thefinished product shall be considered as a product originating in the territory of the latter Party provided thatit:

(a) complies with the origin requirements provided for in Rule 4 or 5; and(b) fulfils the criteria in Rule 7.

2. The origin of the finished product would be determined under Rule 5.

11. Accessories, Spare Parts and Tools

Each Party shall provide that accessories, spare parts and tools delivered with a good that form partof the good’s standard accessories, spare parts and tools, shall be treated as originating goods if the good isan originating good, and shall be disregarded in determining whether all the non-originating materials usedin the production of the good undergo the applicable change in tariff classification, provided that:

(a) the accessories, spare parts and tools are not invoiced separately from the good;(b) the quantities and value of the accessories, spare parts and tools are standard trade practice for the

good in the domestic market of the exporting Party; and(c) if the good is subject to a qualifying value content requirement, the value of the accessories, spare

parts, or tools shall be taken into account as originating or non-originating materials, as the casemay be, in calculating the qualifying value content of the good.

12. Treatment of Packing

(a) Packages and packing materials for retail sale:(i) Packages and packing materials for retail sale, when classified together with the packaged product,

according to General Rule 5(b) of the Harmonised System, shall not be taken into account forconsidering whether all non-originating materials used in the manufacture of a product fulfil thecriterion corresponding to a change of tariff classification of the said product.

(ii) If the product is subject to an ad valorem percentage criterion, the value of the packages and pack-ing materials for retail sale shall be taken into account in its origin assessment, in case they aretreated as being one for customs purposes with the products in question.

(b) Containers and packing materials for transport:


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The containers and packing materials exclusively used for the transport of a product shallnot be taken into account for determining the origin of any product, in accordance with GeneralRule 5(b) of the Harmonised System.

13. Identical and Interchangeable Materials

1. Where identical and interchangeable originating and non-originating materials including materialsof undetermined origin are used in the manufacture of a product, those materials shall be physicallysegregated, according to their origin, during storage.

2. A producer facing considerable costs or material difficulties in keeping separate stocks of identicaland interchangeable originating and non-originating materials including materials of undeterminedorigin used in the manufacture of a product, may use the so-called “accounting segregation” methodfor managing stocks.

3. The accounting method shall be recorded, applied and maintained in accordance with generallyaccepted accounting principles applicable in the Party in which the product is manufactured. Themethod chosen must:

(a) permit a clear distinction to be made between originating and non originating materials includingmaterials of undetermined origin acquired and/or kept in stock; and

(b) guarantee that no more products receive originating status than would be the case if the materialshad been physically segregated.

4. The producer using this facilitation shall only complete origin declarations for the quantity of prod-ucts considered as originating and shall assume full responsibility for the origin declarations and forkeeping all documentary evidence of origin of the materials. At the request of the competent au-thorities of the exporting Party, the producer shall provide satisfactory information on how thestocks have been managed.

5. A Party may require that the application of the method for managing stocks as provided for in thisArticle is subject to prior authorisation.

14. Advance Rulings

1. Each Party shall provide for the issuance of written advance rulings, prior to the importation of agood into its territory, to an importer of the good in its territory or to an exporter or producer of thegood in the exporting party, as to whether the good qualifies as an originating good. The importingParty may request, at any time during the course of evaluating the request for an advance ruling,additional information necessary to evaluate the request. The importing party shall issue its deter-mination regarding the origin of the good within 120 days after receipt of all necessary information.

2. The importing Party shall apply an advance ruling to importation into its territory of the good forwhich the ruling was issued, for such period, which may be specified in the ruling.

3. The importing Party may modify or revoke an advance ruling:

(a) if the ruling was based on an error of fact;(b) if there is a change in the material facts or circumstances on which the ruling was based; or(c) to conform with a modification of this Chapter.


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4. Where the importing Party modifies or revokes an advance ruling, such modification or revocationshall only take effect 60 days after the date on which the modification or revocation is issued, and shall notapply to importation of a good that has occurred prior to the effective date.

5. Notwithstanding paragraphs 3 and 4 above, the importing Party may revoke any advance ruling abinitio, if the importer or exporter to whom the advance ruling was issued had provided false or incorrectinformation pursuant to the application for the ruling.

6. Apart from the advance ruling being revoked ab initio, the person who had provided the false orincorrect information shall also be liable to appropriate penalties under the domestic laws of the respectiveParties.

15. Consignment Criteria

The originating goods of the other Party shall be deemed to meet the consignment criteria whenthey are:

(a) transported directly from the territory of the other Party; or(b) transported through the territory or territories of one or more non-Parties for the purpose of transit

or temporary storing in warehouses in such territory or territories, and the products have not enteredinto trade or consumption there, provided that

(i) they do not undergo operations other than unloading, reloading or operations to preserve them ingood condition; or

(ii) the transit entry is justified for geographical reason or by considerations related exclusively totransport requirements.

16. Certificate of Origin

Products eligible for preferential concessions shall be supported by a Certificate of Origin issued bya government authority designated by the government of the exporting Party and notified to the other Party(referred to herein as “the certifying authority”) in accordance with the Operational Certification Proce-dures, as set out in Annex A.

17. Co-operation on verification of Certificates of Origin

1. The Parties shall co-operate with each other to verify the authenticity and the correctness of theinformation given in the certificates of origin.

2. For the purpose of implementing the provisions of paragraph 1, the customs administration of theimporting Party shall return the certificate of origin, or a copy of the document, to the certifying authority ofthe exporting Party, giving the reason for the enquiry. Any document and/or information obtained suggest-ing that the information given on the certificate of origin is incorrect shall be forwarded in support of therequest for verification.

3. The verification shall be carried out by the certifying authority of the exporting Party.


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18. Denial of Preferential Tariff Treatment

1. Export of consignments accompanied by an authentic Certificate of Origin will not be sub-jected to any detention or delays by the Customs Authorities of the importing country.

2. In case of reasonable doubt about the authenticity of Certificate of Origin, the Customs authority ofthe importing country may seek a clarification from the certifying authority of the exporting country, whichwill furnish the same within a period of 30 days. Meanwhile, the subject consignment will be allowed entryinto the importing country on a provisional basis against a bond or a guarantee i.e. a legally binding under-taking as may be required. After examining the information so provided by the certifying authority, theCustoms Authority in the importing country would take appropriate action to finalise the provisional assess-ment.

3. Where the clarification carried on in above paragraph 2 is not conclusive, the importing Party may,upon informing the exporting Party and with the knowledge of the importer concerned and with the consentof the exporter or manufacturer concerned, visit the exporter or manufacturer concerned for the purpose ofverifying the preference claim. If no consent is given by the exporter or manufacturer concerned within aperiod of 45 days, the importing party may disallow the tariff preference for the particular Certificate ofOrigin.

19. Consultation and Modifications

These rules may be reviewed as and when necessary upon the request of either Party and may bemodified by mutual agreement pursuant to Article 16.7 of the agreement on Comprehensive Economic Co-operation Agreement between Republic of India and Republic of Singapore.

ANNEX A

OPERATIONAL CERTIFICATION PROCEDURES

For the purposes of implementing the Rules of Origin, the following operational procedures on the issuanceand verification of the Certificate of Origin and other related administrative matters, shall be followed:

(i) AUTHORITIES

RULE 1

The Certificate of Origin (Attachment 1) shall be issued by the government authority designated bythe exporting Party and notified to the other Party.

RULE 2

(a) Each Party shall inform the other Party of the names and addresses of the government officialsissuing this Certificate of Origin and shall provide specimen signatures and official seals used bythe government officials.

(b) Any change in names, addresses, or official seals shall be promptly notified to the other Party.


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RULE 3

For the purpose of verifying the conditions for preferential treatment, the government authoritydesignated to issue the Certificate of Origin (hereinafter referred to as Issuing Authority) shall have the rightto call for any supporting documentary evidence or to carry out any check considered appropriate.

(ii) APPLICATIONS

RULE 4

The manufacturer and/or exporter of the products qualified for preferential treatment shall apply in writingto the relevant Issuing Authority requesting for the pre-exportation verification of the origin of the products.The result of the verification, subject to review periodically or whenever appropriate, shall be accepted asthe supporting evidence in verifying the origin of the said products to be exported thereafter. The pre-exportation verification may not apply to products, the origin of which can be easily verified, by theirnature.RULE 5

At the time of carrying out the formalities for exporting the products under preferential treatment, theexporter or his authorized representative shall submit a written application for the Certificate of Origintogether with appropriate supporting documents proving that the products to be exported qualify for theissuance of a Certificate of Origin.

(iii) PRE-EXPORTATION EXAMINATION

RULE 6

The Issuing Authority shall, to the best of its competence and ability, carry out proper examination uponeach application for the Certificate of Origin to ensure that:

(a) The application and the Certificate of Origin are duly completed and signed by the authorisedsignatory;

(b) The origin of the product is in conformity with the Rules of Origin of this Agreement;(c) The other statements of the Certificate of Origin correspond to supporting documentary evidence

submitted; and(d) Description, quantity and weight of goods, marks and number of packages, number and kinds of

packages, as specified, conform to the consignment to be exported.

(iv) ISSUANCE OF CERTIFICATE OF ORIGIN

RULE 7

(a) The validity of the Certificate of Origin shall be 12 months from the date of its issuance.(b) The Certificate of Origin must be on ISO A4 size paper in conformity to the specimen shown in

Appendix 1. It shall be made in English.


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(c) The Certificate of Origin shall comprise one original and three (3) carbon copies of the followingcolours:

Original - light greyDuplicate - whiteTriplicate - whiteQuadruplicate - white

(d) Each Certificate of Origin shall bear a reference number given separately by each place or office ofissuance.

(e) The original copy, together with the triplicate, shall be forwarded by the exporter to the importer forsubmission of the original copy to the Customs Authority at the port or place of importation. Theduplicate shall be retained by the issuing authority in the exporting Party. The triplicate shall beretained by the importer and the quadruplicate shall be retained by the exporter.

RULE 8

To implement the provisions of Rule 3, Rule 4 and Rule 5 of ‘Rules of Origin’ the Certificate of Originissued by the exporting Party shall indicate the applicable Rules of Origin and the local value-added content,where applicable, in Box 8 of the Certificate of Origin.

RULE 9

Neither erasures nor superimpositions shall be allowed on the Certificate of Origin. Any alteration shall bemade by striking out the erroneous materials and making any addition required. Such alterations shall beapproved by an official authorised to sign the Certificate of Origin and certified by the Issuing Authority.Unused spaces shall be crossed out to prevent any subsequent addition.

RULE 10

(a) The Certificate of Origin shall be issued by the relevant Issuing Authority of the exporting Party atthe time of exportation, or within 3 working days from the date of shipment whenever the productsto be exported can be considered originating in that Party within the meaning of the Rules of Origin.

(b) In exceptional cases where a Certificate of Origin has not been issued at the time of exportation orwithin 3 working days from the date of shipment due to involuntary errors or omissions or othervalid causes, the Certificate of Origin may be issued retroactively but no longer than one year fromthe date of shipment, bearing the word “ISSUED RETROACTIVELY”

RULE 11

In the event of theft, loss or destruction of a Certificate of Origin, the exporter may apply in writing to theIssuing Authority which issued it for the certified true copy of the original and the triplicate to be made onthe basis of the export documents in their possession bearing the endorsement of the word “CERTIFIEDTRUE COPY” (in lieu of the Original Certificate) in Box 12 of the Certificate of Origin. This copy shallbear the date of the original Certificate of Origin. The certified true copy of a Certificate of Origin shall be


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issued within the validity period of the original Certificate of Origin and on condition that the exporterprovides to the Issuing Authority the quadruplicate mentioned in Rule 7.

(v) PRESENTATION

RULE 12

The Original Certificate of Origin shall be submitted to the Customs Authority at the time of lodging theimport entry for the products concerned.

RULE 13

The following time limit for the presentation of the Certificate of Origin shall be observed:

(a) Certificate of Origin shall be submitted to the Customs Authority of the importing Party within itsvalidity period;

(b) Where the Certificate of Origin is submitted to the Customs Authority of the importing Party afterthe expiration of the validity of the Certificate of Origin, such Certificate is still to be accepted whenfailure to observe the time-limit results from force majeure or other valid causes beyond the controlof the exporter; and

(c) In all cases, the relevant government authority in the importing Party may accept such Certificate ofOrigin provided that the products have been imported before the expiration of the validity of theCertificate of Origin.

RULE 14

The discovery of minor discrepancies between the statements made in the Certificate of Origin and thosemade in the documents submitted to the Customs Authority of the importing Party for the purpose of carry-ing out the formalities for importing the products shall not ipso-facto invalidate the Certificate of Origin, ifit does in fact correspond to the said products.

RULE 15

(a) The importing Party may request a retroactive check at random and/or when it has reasonabledoubt as to the authenticity of the document or as to the accuracy of the information regarding thetrue origin of the products in question or of certain parts thereof.

(b) The request shall be accompanied with the Certificate of Origin concerned and shall specify thereasons and any additional information suggesting that the particulars given on the said Certificateof Origin may be inaccurate, unless the retroactive check is requested on a random basis.

(c) The Customs Authority of the importing Party may suspend the provisions on preferential treatmentwhile awaiting the result of verification. However, it may release the products to the importer sub-ject to any administrative measures deemed necessary, provided that they are not held to be subjectto import prohibition or restriction and there is no suspicion of fraud.

(d) The Issuing Authority receiving a request for retroactive check shall respond within three monthsafter the receipt of the request.


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RULE 16

(a) The application for Certificates of Origin and all documents related to such application shall beretained by the Issuing Authority for not less than two years from the date of issuance.

(b) Information relating to the validity of the Certificate of Origin shall be furnished upon request of theimporting Party.

(c) Any information communicated among the government authorities shall be treated as confidentialand shall be used for the validation of Certificates of Origin purposes only.

(vi) Special Cases

RULE 17

When destination of all or parts of the products exported to specified port is changed, before or aftertheir arrival in the importing Party, the following Rules shall be observed.

(a) If the products have already been submitted to the Customs Authority in the specified importingport, the Certificate of Origin shall, by a written application of the importer, be endorsed to thiseffect for all or parts of products by the said authority and the original returned to the importer.

(b) If a change of destination occurs during transportation to the importing Party as specified in theCertificate of Origin, the exporter shall apply in writing, accompanied with the issued Certificate ofOrigin, for the issuance of new Certificate/s of Origin for all or parts of products.

RULE 18

For the purpose of implementing paragraph (b) of Rule 15 of ‘Rules of Origin’ where transportation iseffected through the territory of one or more non-parties, the following shall be produced to the governmentauthorities of the importing Party:

(a) A through Bill of Lading issued in the exporting Party;(b) A Certificate of Origin issued by the Issuing Authority of the exporting Party;(c) A copy of the original commercial invoice in respect of the product; and(d) Supporting documents in evidence that the requirements of paragraph (b) of Rule 15 of ‘Rules of

Origin’ are being complied with.

RULE 19(a) Products sent from one Party for exhibition in the other Party and sold during or after the exhibition,

for importation into the other Party shall benefit from the preferential tariff treatment provided inthis Agreement, on the condition that the products meet the requirements of the ‘Rules of Origin’and provided it is shown to the satisfaction of the relevant government authorities of the importingParty that:

(i) An exporter has dispatched those products from the territory of the exporting Party to the importingParty where the exhibition is held and has exhibited them there;

(ii) The exporter has sold the goods or transferred them to a consignee in the importing Party; and(iii) The products have been sold during the exhibition or immediately thereafter to the importing Party

in the condition in which they were sent for the exhibition.


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(b) For the purpose of implementing the above provisions, the Certificate of Origin must be producedto the relevant government authorities of the importing Party. The name and address of the exhibi-tion must be indicated, a certificate issued by the relevant government authority of the Party wherethe exhibition took place together with supporting documents prescribed in paragraph (d) of Rule18 may be required.

(c) Paragraph (a) shall apply to any exhibitions, fairs or similar shows or displays where the productsremain under Customs control during these events.

(vii) ACTION AGAINST FRAUDULENT ACTS

RULE 20

(a) When it is suspected that fraudulent acts in connection with the Certificate of Origin have been com-mitted, the Issuing Authorities concerned shall co-operate in the action to be taken in the territory ofeach Party against the persons involved.

(b) Each Party shall be responsible for providing legal sanctions for fraudulent acts related to the Certifi-cate of Origin.

RULE 21

In the case of a dispute concerning origin determination, classification of products or other matters,the government authorities concerned in the importing and exporting Parties shall consult each other with aview to resolving the dispute.

ANNEX BPRODUCT SPECIFIC RULES

No Tariff Item Description of Products Specific RuleNumber

1. 2 3.

1. Chapter 18 Cocoa and cocoa preparations

2. 1804 Cocoa butter, fat and oil. Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method

3. 1805 Cocoa powder, not containing added Local value added content is at leastsugar or other sweetening matter. 40 percent based on direct method or

not more than 60 percent based onindirect method

4. Chapter 21 Miscellaneous edible preparations

5. 2103 Sauces and preparations therefor;mixed condiments and mixed


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seasonings; mustard flour andmeal and prepared mustard

6. 2103 10 - Soya sauce Production from materials other thanthose of heading 2103

7. 2106 Food preparations not elsewherespecified or included.

8. ex 2106 90 - Other

9. - - Soft drink concentrates Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method, and provided suchproduct does not contain non-origi-nating sugar of heading 1701 or 1702

10. - - Pan masala Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method, and provided suchproduct does not contain non-origi-nating sugar of heading 1701 or 1702

11. - - Betel nut product known as Local value added content is at least“Supari” 40 percent based on direct method or

not more than 60 percent based onindirect method, and provided suchproduct does not contain non-origi-nating sugar of heading 1701 or 1702

12. - - Sugar syrups containing added Local value added content is at leastflavouring or colouring matter, not 40 percent based on direct methodelsewhere specified or included; or not more than 60 percent basedlactose syrup; glucose syrup and on indirect method, and providedmalto dextrine syrup such product does not contain non-

originating sugar of heading 1701 or1702

13. - - Custard powder Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method, and provided suchproduct does not contain non-origi-nating sugar of heading 1701 or 1702

1. 2 3.


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14. - - Other Local value added content is at least40 percent based on direct method ornot more than 60 percent based on in-direct method, and provided such prod-uct does not contain non-originatingsugar of heading 1701 or 1702

15 Chapter 29 Organic chemicals

16. 2902 Cyclic hydrocarbons.

17. 2902 11 - Cyclohexane Production from materials other thanthose of subheading 2902 11, and pro-vided there is a local value added con-tent of at least 40 percent based on di-rect method or not more than 60 per-cent based on indirect method

18. 2902 70 - Cumene Local value added content is at least40 percent based on direct method ornot more than 60 percent based on in-direct method

19. 2903 Halogenated derivatives ofhydrocarbons

20. 2903 51 - Halogenated derivatives of cyclanic, Production from materials other thancyclenic or cycloterpenic those of heading 29031,2,3,4,5,6-Hexachlorocyclohexanehydrocarbons:

21. 2903 59 - Halogenated derivatives of cyclanic, Production from materials other thancyclenic or cycloterpenic those of heading 2903 hydrocarbons:

Other

22. 2903 61 - Halogenated derivatives of aromatic Production from materials other thanhydrocarbons: Chlorobenzene, those of heading 2903o-dichlorobenzene & p-dichlorobenzene

23. ex 2903 62 - Hexachlorobenene and DDT (1, 1,1-trichloro-2, 2-bis (p-chlorophenyl)ethane)

24. - - Hexachlorobenzene, other than Production from materials otherlindane than those of heading 2903

1. 2 3.


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25. - - DDT (Dichloro-diphenyl- Production from materials othertrichloroethane): Other than those of heading 2903

26. 2905 Acyclic alcohols and their halogenated,sulphonated, nitrated or nitrosatedderivatives.

27. ex 2905 12 - Saturated monohydric alcohols:Propan-1-ol (propyl alcohol) andpropan-2-ol (isopropyl alcohol)

28. - - Propyl alcohol Production from materials other thanthose of heading 2905

29. 2905 13 - Saturated monohydric alcohols: Local value added content is at leastButan-1-ol (n-butyl alcohol) 40 percent based on direct method or


30. ex 2905 16 - Saturated monohydric alcohols:Octanol (octyl alcohol) and isomersthereof

31. - - Other Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method

32. 2906 Cyclic alcohols and their halogenated,sulphonated, nitrated or nitrosatedderivatives.

33. 2906 11 - Cyclanic, cyclenic or cycloterpenic: Production from materials other thanMenthol those of heading 2906

34. 2907 Phenols; phenol-alcohols.

35. ex 2907 19 - Monophenols: Other

36. - - Alkyl phenols Production from materials other thanthose of subheading 2907 19, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

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37. 2907 23 - 4,4 -isopropylidenediphenol Production from materials other than(bis-phenol A, diphenylolpropane) those of subheading 2907 23& its salts

38. 2912 Aldehydes, whether or not with otheroxygen function; cyclic polymers ofaldehydes; paraformaldehyde.

39. 2912 13 - Butanal (butyraldehyde normal Production from materials other thanisomer) those of heading 2912

40. 2913 Halogenated, sulphonated, nitrated or Production from materials other thannitrosated derivatives of products of those of heading 2913heading 29.12.

41. 2915 Saturated acyclic monocarboxylicacids and their anhydrides, halides,peroxides and peroxyacids; theirhalogenated, sulphonated, nitrated ornitrosated derivatives

42. ex 2915 29 - Acetic acid and its salts; aceticanhydride:Other:

43. - - Magnesium acetate Production from materials other thanthose of subheading 2915 29, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

44. 2915 33 - Esters of acetic acid: n-Butyl Production from materials other thanacetate those of subheading 2915 33, and

provided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

45. 2915 39 - Esters of acetic acid: Other: Production from materials other thanthose of subheading 2915 39, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

46. 2916 Unsaturated acyclic monocarboxylicacids, cyclic monocarboxylic acids,

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their anhydrides, halides, peroxidesand peroxy acids; their halogenated,sulphonated, nitrated or nitrosatedderivatives

47. ex 2916 12 - Esters of acrylic acid

48. - - Butyl acrylate Production from materials other thanthose of subheading 2916 12

49. 2917 Polycarboxylic acids, their anhydrides,halides, peroxides and peroxyacids;their halogenated, sulphonated,nitrated or nitrosated derivatives

50. 2917 12 - Acyclic polycarboxylic acids, Production from materials other thantheir anhydrides, halides, peroxides, those of heading 2917peroxyacids and their derivatives:Adipic acid its salts & esters

51. ex 2917 39 - Aromatic polycarboxylic acids theiranhydrides halides peroxidesperoxyacids & their derivatives:Other

52. - - Dioctyl phthalate Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method

53. 2921 Amine-function compounds.

54. 2921 11 - Methylamine, di- or trimethylamine Local value added content is at least& their salts 40 percent based on direct method or


55. 2921 12 - Diethylamine & its salts Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method

56. 2921 19 - Other acyclic monoamines & their Local value added content is at leastderivatives salts thereof 40 percent based on direct method or


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57. 2921 21 - Acyclic polyamines and their Local value added content is at leastderivatives; salts thereof: 40 percent based on direct methodEthylenediamines & its salts or not more than 60 percent based on

indirect method

58. 2921 22 - Acyclic polyamines and Local value added content is at leasttheir derivatives; salts thereof: 40 percent based on direct methodHexamethylenediamine & its salts or not more than 60 percent based on

indirect method

59. 2921 29 - Acyclic polyamines and their Local value added content is at leastderivatives; salts thereof: Other 40 percent based on direct method or


60. 2929 Compounds with other nitrogenfunction.

61. ex 2929 10 - Isocyanates

62. - - Phenyl isocyanate Production from materials other thanthose of heading 2929

63. - - Toluene di-isocyanate Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method

64. - - Other isocyanates Production from materials other thanthose of heading 2929

65. 2932 Heterocyclic compounds with oxygenheteroatom(s) only.

66. ex 2932 19 - Compounds containing an unfusedfuran ring (whether or not hydrogenat-ed) in the structure: Other


68. 2933 Heterocyclic compounds withnitrogen heteroatom(s) only.

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69. 2933 61 - Compounds containing an unfused Local value added content is at leasttriazine ring (whether or not hydro- 40 percent based on direct methodgenated) in the structure: Melamine or not more than 60 percent based on

indirect method

70 Chapter 38 Miscellaneous chemical products

71. 3824 Prepared binders for foundry mouldsor cores; chemical products andpreparations of the chemical orallied industries (including thoseconsisting of mixtures of naturalproducts), not elsewhere specifiedor included

72. ex 3824 90 - Other:

73. - - Electroplating salts; water treatment Production from materials other thanchemicals; ion xchanger; correcting those of heading 3824fluid; precipitated silica and silica gel;oil well chemical:

- /kGramophone records makingmaterial

74 Chapter 39 Plastics and articles thereof

75. 3912 Cellulose and its chemical derivatives,not elsewhere specified or included,in primary forms.

76. 3912 39 - Cellulose ethers: other Production from materials other thanthose of heading 3912

77 Chapter 48 Paper & paperboard; articles ofpaper pulp, of paper or of paperboard

78. 4818 Toilet paper and similar paper,cellulose wadding or webs ofcellulose fibres, of a kind used forhousehold or sanitary purposes, inrolls of width not exceeding 36 cm, orcut to size or shape; handkerchiefs,cleansing tissues, towels, tablecloths,

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serviettes, napkins for babies,tampons, bed sheets and similarhousehold, sanitary or hospital articles,articles of apparel and clothing accessories,of paper pulp, paper, cellulose waddingor webs of cellulose fibres

79. 4818 40 - Sanitary towels and tampons, napkins Production from materials otherand napkin liners for babies and than those of heading 4818similar sanitary articles

80. Chapter 49 Printed books, newspapers, picturesand other products of the printingindustry; manuscripts, typescriptsand plans

81. 4901 Printed books, brochures, leaflets andsimilar printed matter, whether or notin single sheets.

82. 4901 10 - In single sheets, whether or not Local value added content is at leastfolded 40 percent based on direct method or

not more than 60 per cent based onindirect method

83. 4901 99 - Other: Other Local value added content is at least40 percent based on direct method ornot more than 60 per cent based onindirect method

84. 4902 Newspapers, journals and periodicals,whether or not illustrated or containingadvertising material.

85. 4902 90 - Other Production from materials other thanthose of heading 4902

86. 4911 Other printed matter, including printedpictures and photographs.

87. ex 4911 99 - Other:other:

88. - - Hard copy (printed) of computer Production from materials other thansoftware those of heading 4911

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89. Chapter 84 Nuclear reactors, boilers,machinery and mechanicalappliances; parts thereof

90. 8407 Spark ignition reciprocating or rotaryinternal combustion piston engines.

91. 8407 10 - Aircraft engines Production from materials other than

those of heading 8407

92. 8414 Air or vacuum pumps, air or othergas compressors and fans; ventilatingor recycling hoods incorporating a fan,whether or not fitted with filters

93. ex 8414 80 - Other:

94. - - Gas compressors: Of a kind used Production from materials other thanin air-conditioning equipment those of subheading 8414 80, and


95. - - Gas compressors: Other Production from materials other thanthose of subheading 8414 80, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60

percent based on indirect method96. - -Gas compressors: Free-piston Production from materials other than

generators for gas turbine those of subheading 8414 80, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

97. - - Gas compressors: Other Production from materials other thanthose of subheading 8414 80, and pro-vided there is a local value added con-tent of at least 40 percent based on di-rect method or not more than 60 per-cent based on indirect method

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98. 8419 Machinery, plant or laboratoryequipment, whether or not electricallyheated (excluding furnaces, ovensand other equipment of heading 85.14),for the treatment of materials by aprocess involving a change oftemperature such as heating, cooking,roasting, distilling, rectifying, sterilising,pasteurising, steaming, drying,evaporating, vaporising, condensingor cooling, other than machinery orplant of a kind used for domesticpurposes; instantaneous or storagewater heaters, non-electric

99. 8419 32 - Dryers: for wood paper pulp Production from materials other thanpaper or paperboard those of subheading 8419 32, and pro-

vided there is a local value added con-tent of at least 40 percent based on di-rect method or not more than 60 per-cent based on indirect method

100.8419 60 - Machinery for liquefying air or Production from materials other thanother gases those of subheading 8419 60, and


101.ex 8419 89 - Other machinery, plant andequipment: Other:

102. - - Pressure vessels reactors, Production from materials other thanor towers or chemical those of subheading 8419 89, andstorage tanks provided there is a local value added

content of at least 40 percent basedon direct method or not more than 60percent based on indirect method

103. - - Glass lined equipment Production from materials other thanthose of subheading 8419 89, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

104. - - Pasteurizers Production from materials other thanthose of subheading 8419 89, andprovided there is a local value added

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105. - - Plant growth chambers and rooms Production from materials other thanand tissue culture chambers and those of subheading 8419 89, androoms with temperature, humidity provided there is a local value addedor light control content of at least 40 percent based

on direct method or not more than 60percent based on indirect method

106. - - Apparatus for rapid heating of Production from materials other thansemiconductor devices; apparatus those of subheading 8419 89, andfor chemical or physical vapour provided there is a local value addeddeposition on semi-conductors content of at least 40 percent basedwafers; apparatus for chemical on direct method or not more thanvapour deposition LCD substratus 60 percent based on indirect method

107. - - Vacuum vapour plant for Production from materials other than deposition of metals‘ those of subheading 8419 89, and


108. - - Others Production from materials other thanthose of subheading 8419 89, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

109.8421 Centrifuges, including centrifugal dryers;filtering or purifying machinery andapparatus for liquids or gases

110.8421 21 - Filtering or purifying machinery and Production from materials other thanapparatus for liquids: those of subheading 8421 21, andFor filtering or purifying water provided there is a local value added


111. 8421 22 - Filtering or purifying machinery and Production from materials other thanapparatus for liquids: For filtering or those of subheading 8421 22, andpurifying beverages other than water provided there is a local value added


112. 8424 Mechanical appliances (whether or nothand operated) for projecting, dispersing

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or spraying liquids or powders; fireextinguishers, whether or not charged;spray guns and similar appliances; steamor sand blasting machines and similar jetprojecting machines

113. 8424 89 - Other appliances: Other Production from materials other thanthose of subheading 8424 89, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

114. 8456 Machine tools for working any material byremoval of material, by laser or other lightor photon beam, ultrasonic, electro-discharge,electro-chemical, electron beam, ionic-beamor plasma arc processes

115. 8456 10 - Operated by laser or other light or Local value added content is at leastphoton beam processes 40 percent based on direct method or


116. 8456 20 - Operated by ultrasonic processes Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method

117. 8456 30 - Operated by electro discharge processes Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method

118. 8456 91 - Other: Local value added content is at leastFor dry-etching patterns on semiconduct 40 percent based on direct method oror materials not more than 60 percent based on

indirect method

119. 8457 Machining centres, unit constructionmachines (single station) and multi-stationtransfer machines, for working metal

120. 8457 20 - Unit construction machines Local value added content is at least(single station) 40 percent based on direct method or


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121. 8457 30 - Multi-station transfer machines Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method

122. 8458 Lathes (including turning centres) forremoving metal.

123. 8458 19 - Horizontal lathes: Other Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method

124. 8458 91 - Other lathes: numerically controlled Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method

125. 8458 99 - Other lathes: other Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method

126. 8459 Machine tools (including way-type unit Local value added content is at leasthead machines) for drilling, boring, milling, 40 percent based on direct methodthreading or tapping by removing metal, or not more than 60 percent basedother than lathes (including turning centres) on indirect methodof heading 8458

127. 8460 Machine tools for de-burring, sharpening,grinding, honing, lapping, polishing orotherwise finishing metal or cermets bymeans of grinding stones, abrasives orpolishing products, other than gear cutting,gear grinding or gear finishing machinesof heading 8461

128. ex 8460 29 - Other grinding machines, in which theup to positioning in any one axis canbe set an accuracy of at least 0.01mm: Other

129. - - Profile grinders Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method

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130. 8462 Machine tools (including presses) forworking metal by forging, hammering ordie-stamping; machine tools (includingpresses) for working metal by bending,folding, straightening, flattening, shearing,punching or notching; presses for workingmetal or metal carbides, not specified above

131. 8462 29 - Bending folding straightening or Local value added content is at leastflatteningmachines (including presses): 40 percent based on direct method orOther not more than 60 percent based on

indirect method132. 8463 Other machine tools for working metal or

cermets, without removing material.

133. 8463 30 - Machines for working wire Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method

134. 8464 Machine tools for working stone, ceramics,concrete, asbestos-cement or like mineralmaterials or for cold working glass

135. 8464 10 - Sawing machines Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method

136. 8467 Tools for working in the hand, pneumatic,hydraulic or with self-contained electric ornon-electric motor

137. 8467 99 - Parts: Other Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method

138. 8470 Calculating machines and pocketsizedata recording, reproducing and displayingmachines with calculating functions;accounting machines, postage-frankingmachines, ticket –issuing machines andsimilar machines, incorporating acalculating device; cash registers

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139. 8470 50 - Cash registers Production from materials other thanthose of heading 8470


141. 8471 Automatic data processing machines andunits thereof; magnetic or optical readers,machines for transcribing data on to datamedia in coded form and machines forprocessing such data, not elsewherespecified or included

142. 8471 10 - Analogue or hybrid automatic data Production from materials other than

processing machines those of subheading 8471 10

143. 8471 30 - Portable digital automatic data Production from materials other thanprocessing machines weighing not more those of subheading 8471 30than 10 kg, consisting of at least acentral processing unit, a keyboard anda display

144. ex 8471 41 - Other digital automatic data processingmachines: Comprising in the samehousing at least a central processingunit and an input and output unit, whetheror not combined :

145. - - Micro computer Production from materials other thanthose of subheading 8471 41

146. - - Large or main frame computer Production from materials other thanthose of subheading 8471 41

147. 8471 49 - Other digital automatic data processing Production from materials other thanmachines: Other, presented in the of those of subheading 8471 49form systems

148. 8471 50 - Digital processing units other than Production from materials other thanthose of sub-headings 8471 41 or those of subheading 8471 508471 49, whether or not containing inthe same housing one or two of thefollowing types of unit: storage units,input units, output units

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149. 8471 60 - Input or output units, whether or not Production from materials other thancontaining storage units in the same those of heading 8471housing

150. 8471 70 - Storage units Production from materials other thanthose of heading 8471

151. 8471 80 - Other units of automatic data processing Production from materials other thanmachines those of heading 8471


153. 8472 Other office machines (for example, Local value added content is at leasthectograph or stencil duplicating machines, 40 percent based on direct methodaddressing machines, automatic banknote or not more than 60 percent baseddispensers, coin sorting machines, coin on indirect methodcounting or wrapping machines, pencil-sharpening machines, perforating orstapling machines)

154. 8473 Parts and accessories (other than covers,

carrying cases and the like) suitable foruse solely or principally with machines ofheadings 8469 to 8472

155. 8473 30 - Parts and accessories of the machines Production from materials other thanof heading 8471 those of heading 8473

156. 8477 Machinery for working rubber or plastics or

for the manufacture of products from thesematerials, not specified or includedelsewhere in this Chapter

157. 8477 40 - Vacuum moulding machines and other Production from materials other thanthermoforming machines those of subheading 8477 40, and


158. 8479 Machines and mechanical applianceshaving individual functions, not specified orincluded elsewhere in this Chapter

159. 8479 40 - Rope or cable-making machines Production from materials other than

those of subheading 8479 40, and

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160. 8479 50 - Industrial robots not elsewhere specified Local value added content is at leastor included 40 percent based on direct method or


161. 8479 60 - Evaporative air coolers Production from materials other thanthose of subheading 8479 60, andprovided there is a local value addedcontent of at least 40 percent based ondirect method or not more than 60 per-cent based on indirect method

162. 8479 81 - Other machines and mechanical Production from materials other thanappliances: For treating metal, including those of subheading 8479 81, andelectric wire coil-winders provided there is a local value added


163. 8479 89 - Other machines & mechanical Production from materials other thanappliances: Other those of subheading 8479 89, and


164. Chapter 85 Electrical machinery and equipmentand parts thereof; sound recorders andreproducers, television image and soundrecorders and reproducers, and partsand accessories of such articles

165. 8504 Electrical transformers, static converters(for example, rectifiers) and inductors.

166. ex 8504 40 - Static converters:

167. - - Electric inverters Production from materials other thanthose of subheading 8504 40

168. - - Rectifier: Dip bridge rectifiers Production from materials other thanthose of subheading 8504 40

169. - - Rectifier: Other Production from materials other thanthose of subheading 8504 40, andprovided there is a local value added

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170. - - Battery chargers Production from materials other thanthose of subheading 8504 40, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

171. - - Voltage regulator and stabilizers Production from materials other than(other than automatic) those of subheading 8504 40, and


172. - - Other Production from materials other thanthose of subheading 8504 40, andprovided there is a local value addedcontent of at least 40 percent based ondirect method or not more than 60 per-cent based on indirect method

173. 8504 50 - Other inductors Production from materials other thanthose of subheading 8504 50, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

174.8507 Electric accumulators, including separatorstherefor, whether or not rectangular(including square).

175. 8507 20 - Other lead-acid accumulators Production from materials other thanthose of subheading 8507 20, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

176.8507 30 - Nickel-cadmium Production from materials other thanthose of subheading 8507 30, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

177.8507 40 - Nickel-iron Production from materials other thanthose of subheading 8507 40, and

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178.8507 80 - Other accumulators Production from materials other thanthose of subheading 8507 80, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

179. ex 8507 90 - Parts:

180. - - Accumulator cases made of hard Production from materials other thanrubber and separators those of subheading 8507 90, and


181. 8509 Electromechanical domestic appliances,with self-contained electric motor.

182. 8509 10 - Vacuum cleaners , including dry and Production from materials other thanwet vacuum cleaners those of subheading 8509 10, and


183. 8509 20 - Floor polishers Production from materials other thanthose of subheading 8509 20, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

184.8509 30 - Kitchen waste disposers Production from materials other thanthose of subheading 8509 30, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

185. 8509 40 - Food grinders mixers; fruit or vegetable Production from materials other than juice extractors those of subheading 8509 40, and


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186. 8509 80 - Other appliances Production from materials other thanthose of subheading 8509 80, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

187. 8510 Shavers, hair clippers and hair-removingappliances, with self-contained electricmotor.

188. 8510 10 - Shavers Production from materials other thanthose of subheading 8510 10, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

189. 8510 20 - Hair clippers Production from materials other thanthose of subheading 8510 20, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

190. 8510 30 - Hair-removing appliances Production from materials other thanthose of subheading 8510 30, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

191. 8514 Industrial or laboratory electric furnacesand ovens (including those functioning byinduction or dielectric loss); other industrialor laboratory equipment for the heattreatment of materials by induction ordielectric loss

192. 8514 20 - Furnaces and ovens functioning by Production from materials other thaninduction or dielectric loss those of subheading 8514 20, and


193. 8514 30 - Other furnaces and ovens Production from materials other thanthose of subheading 8514 30, andprovided there is a local value addedcontent of at least 40 percent based

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194. 8514 40 - Other equipment for the heat treatment Production from materials other thanof materials by induction or dielectric those of subheading 8514 40, andloss provided there is a local value added


195. 8516 Electric instantaneous or storage waterheaters and immersion heaters; electricspace heating apparatus and soil heatingapparatus; electrothermic hair-dressingapparatus (for example, hair dryers, haircurlers, curling tong heaters) and handdryers; electric smoothing irons; otherelectro-thermic appliances of a kindused for domestic purposes; electricheating resistors, other than those ofheading 8545.

196. 8516 40 - Electric smoothing irons Production from materials other thanthose of subheading 8516 40, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

197. 8517 Electrical apparatus for line telephony orline telegraphy, including line telephonesets with cordless handsets andtelecommunication apparatus forcarrier-current line systems or for digitalline systems; videophones

198. 8517 11 - Telephone sets; videophones: Line Production from materials other thantelephone sets with cordless handsets those of subheading 8517 11

199. 8517 21 - Facsimile machines and teleprinters: Production from materials other thanFacsimile machines those of subheading 8517 21

200. 8517 30 - Telephonic or telegraphic switching Production from materials other thanapparatus those of subheading 8517 30

201. 8517 50 - Other apparatus for carrier-current line Production from materials other thansystems or for digital line systems those of subheading 8517 50

202. 8517 80 - Other apparatus Production from materials other thanthose of subheading 8517 80

203. 8517 90 - Parts:

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204. - - Populated, loaded or stuffed printed Production from materials other thancircuit boards those of subheading 8517 90

205. - - Other Production from materials other thanthose of heading 8517

206. 8521 Video recording or reproducing apparatus,whether or not incorporating a video tuner.

207. 8521 10 - Magnetic tape-type Production from materials other thanthose of heading 8521

208. ex 8521 90 - Other:

209. - - Video duplicating system with Production from materials other thanmaster and slave control those of heading 8521

210. 8523 Prepared unrecorded media for sound Production from materials other thanrecording or similar recording of other those of heading 8523phenomena, other than products ofChapter 37

211. 8525 Transmission apparatus for radio-telephony,radiotelegraphy, radio-broadcasting ortelevision, whether or not incorporatingreception apparatus or sound recordingor reproducing apparatus; televisioncameras; still image video cameras andother video camera recorders; digital cameras

212. ex 8525 10 - Transmission apparatus

213. - - Broadcast equipment sub-system Production from materials other thanthose of heading 8525

214. - - Wireless microphone Production from materials other thanthose of heading 8525


216. 8525 20 - Transmission apparatus incorporating Production from materials other than reception apparatus: those of heading 8525

217. 8525 30 - Television cameras Production from materials other thanthose of heading 8525

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218. 8525 40 - Still image video cameras and other Production from materials other thanvideo camera recorders; digital cameras those of heading 8525

219. 8526 Radar apparatus, radio navigational aidapparatus and radio remote control apparatus.

220. ex 8526 91 - Radio navigational aid apparatus:

221. - - Direction measuring equipment Production from materials other thanthose of heading 8526

222. - - VHF omni range equipment Production from materials other thanthose of heading 8526

223. 8528 Reception apparatus for television,whether or not incorporating radiobroadcastreceivers or sound or video recording orreproducing apparatus; video monitors andvideo projectors

224. 8528 21 - Video monitors: Colour Production from materials other thanthose of heading 8528

225.8531 Electric sound or visual signalling apparatus(for example, bells, sirens, indicator panels,burglar or fire alarms), other than those ofheading 8512 or 8530

226. 8531 20 - Indicator panels with liquid crystal Production from materials other thandevices (LCD) or light emitting diodes those of subheading 8531 20(LED)

227. 8532 Electrical capacitors, fixed, variable oradjustable (pre-set).

228. 8532 10 - Fixed capacitors designed for use in Production from materials other than50 or 60 Hz circuits and having a those of subheading 8532 10reactive power handling capacity ofnot less than 0.5 kvar (power capacitors)

229.8532 21 - Other fixed capacitors: tantalum Production from materials other than

those of subheading 8532 21230. 8532 22 - Other fixed capacitors: aluminium Production from materials other than

electrolytic those of subheading 8532 22

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231. 8532 23 - Other fixed capacitors: ceramic Production from materials other thandielectric single layer those of subheading 8532 23

232.853224 - Other fixed capacitors: ceramic Production from materials other thandielectric multilayer those of subheading 8532 24

233.8532 25 - Other fixed capacitors: dielectric of Production from materials other thanpaper or plastics those of subheading 8532 25

234. 8532 29 - Other fixed capacitors: other Production from materials other thanthose of subheading 853229

235. 8532 30 - Variable or adjustable (preset) capacitors Production from materials other thanthose of subheading 8532 30

236. 8532 90 - Parts of capacitors Production from materials other thanthose of heading 8532

237. 8533 Electrical resistors (including rheostats andpotentiometers), other than heating resistors.

238. 8533 10 - Fixed carbon resistors, composition or Production from materials other thanfilm types those of subheading 8533 10

239. 8533 21 - Other fixed resistors: for a power Production from materials other than handling capacity not exceeding 20 W those of subheading 8533 21

240. 8533 29 - Other fixed resistors: Other Production from materials other thanthose of subheading 8533 29

241. 8533 31 - Wire-wound variable resistors, including Production from materials other thanrheostats and potentiometers: for a those of subheading 8533 31power handling capacity not exceeding20 W

242. 8533 39 - Wire-wound variable resistors including Production from materials other than

rheostats and potentiometers: Other those of subheading 8533 39243. 8533 40 - Other variable resistors, including Production from materials other than

rheostats and potentiometers those of subheading 8533 40244. 8533 90 - Parts Production from materials other than

those of subheading 8533 90245. 8534 Printed circuits. Production from materials other than

those of heading 8534

246. 8536 Electrical apparatus for switching orprotecting electrical circuits, or for makingconnections to or in electrical circuits (forexample, switches, relays, fuses, surgesuppressors, plugs, sockets, lamp-holders,junction boxes), for a voltage not exceeding1,000 volts

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247. 8536 69 - Lamp-holders, plugs and sockets: Production from materials other thanOther those of heading 8536

248. 8539 Electric filament or discharge lamps,including sealed beam lamp units andultraviolet or infrared lamps; arc-lamps

249. 8539 49 - Ultra-violet or infra-red lamps; Production from materials other thanarc-lamps : those of subheading 8539 49, andOther provided there is a local value added


250. 8541 Diodes, transistors and similar semi-conductor devices; photosensitive semi-conductor devices, including photovoltaiccells whether or not assembled inmodules or made up into panels; lightemitting diodes; mounted piezo-electriccrystals

251. 8541 10 - Diodes, other than photosensitive or Production from materials other thanlight emitting diodes those of subheading 8541 10

252. 8541 21 - Transistors other than photosensitive Production from materials other thantransistors: With a dissipation rate of those of subheading 8541 21less than 1 W

253. 8541 29 - Transistors other than photosensitive Production from materials other thantransistors: Other those of subheading 8541 29

254. 8541 30 - Thyristors, diacs and triacs, other than Production from materials other thanphotosensitive devices those of subheading 8541 30

255.8541 40 - Photosensitive semiconductor devices, Production from materials other thanincluding photovoltaic cells whether or those of subheading 8541 40not assembled in modules or made up intopanels; light emitting diodes

256. 8541 50 - Other semi-conductor devices Production from materials other thanthose of subheading 8541 50

257. 8541 60 - Mounted piezo-electric crystals Production from materials other thanthose of subheading 8541 60

258. 8542 Electronic integrated circuits and micro-assemblies.

259. 8542 10 - Cards incorporating an electronic Production from materials other thanintegrated circuit (smart card) those of subheading 8542 10

1. 2 3.


1349

260. 8542 21 - Monolithic integrated circuits: digital Production from materials other thanthose of subheading 8542 21

261. 854229 - Monolithic integrated circuits: Other Production from materials other thanthose of subheading 8542 29

262. 8542 60 - Hybrid integrated circuits Production from materials other thanthose of subheading 8542 60

263. 8542 70 - Electronic microassemblies Production from materials other thanthose of subheading 8542 70

264. 8543 Electrical machines and apparatus,having individual functions, not specifiedor included elsewhere in this Chapter

265. 8543 11 - Particle accelerators: Ion implanters for Production from materials other thandoping semiconductor materials those of subheading 8543 11

266. 8543 30 - Machines and apparatus for Production from materials other thanelectroplating electrolysis or those of subheading 8543 30, andelectrophoresis provided there is a local value added


267. 8543 81 - Other machines and apparatus: Production from materials other thanProximity cards and tags those of subheading 8543 81

268. 8543 89 - Other machines and apparatus: Other Production from materials other thanthose of subheading 8543 89, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

269. Chapter 86 Railway or tramway locomotives, rollingstock and parts thereof; railway ortramway track fixtures and fittingsand parts thereof; mechanical (includingelectro-mechanical) traffic signallingequipment of all kinds

270. 8607 Parts of railway or tramway locomotives orrolling-stock.

271. 8607 29 - Brakes and parts thereof :Other Production from materials other thanthose of heading 8607

272. 8607 30 - Hooks & other coupling devices, Production from materials other thanbuffers and parts thereof those of heading 8607

1. 2 3.


1350

273. 8607 91 - Other: of locomotives Production from materials other thanthose of heading 8607

274. ex 8607 99 - Other: other

275. - - Parts of coach work of railway Production from materials other thanrunning stock those of heading 8607

276. - - Hydraulic shock absorbers for bogies Production from materials other thanthose of heading 8607


278. 8608 Railway or tramway track fixtures and Production from materials other thanfittings; mechanical (including electro- those of heading 8608mechanical) signalling, safety or trafficcontrol equipment for railway, tramways,roads, inland waterways, parking facilities,port installation or air-fields; parts of theforegoing

279. Chapter 90 Optical, photographic, cinematographic, measuring, checking,precision, medical or surgicalinstruments and apparatus;parts and accessories thereof

280. 9007 Cinematographic cameras and projectors,whether or not incorporating soundrecording or reproducing apparatus

281. 9007 91 - Parts and accessories: for cameras Production from materials other thanthose of heading 9007

282. 9007 92 - Parts and accessories: for projectors Production from materials other thanthose of heading 9007

283. 9008 Image projectors, other than cinemato-graphic; photographic (other than cinemato-graphic) enlargers and reducers

284. 9008 30 - Other image projectors Production from materials other thanthose of subheading 9008 30, andprovided there is a local value added

1. 2 3.


1351


285. 9009 Photocopying apparatus incorporating anoptical system or of the contact type andthermo-copying apparatus

286. 9009 11 - Electrostatic photocopying apparatus: Production from materials other thanOperating by reproducing the original those of subheading 9009 11, andimage directly onto the copy (direct provided there is a local value addedprocess) content of at least 40 percent based


287.9009 21 - Other Photocopying apparatus: Production from materials other thanIncorporating an optical system hose of subheading 9009 21, and


288. 9010 Apparatus and equipment for photographic(including cinematographic) laboratories(including apparatus for the projection ordrawing of circuit patterns on sensitisedsemiconductor materials), not specifiedor included elsewhere in this Chapter;negatoscopes; projection screens

289. 9010 41 - Apparatus for the projection or drawing Production from materials other thanof circuit patterns on sensitised semi- those of subheading 9010 41conductor materials: Direct write-on-wafer apparatus

290. 9010 42 - Apparatus for the projection or drawing Production from materials other thanof circuit patterns on sensitised semi- those of subheading 9010 42conductor materials: Step and repeataligners

291. 9010 49 - Apparatus for the projection or drawing Production from materials other thanof circuit patterns on sensitised semi- those of subheading 9010 49, andconductor materials: Other provided there is a local value added


292. 9010 90 - Parts and accessories Production from materials other thanthose of heading 9010

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1352

293. 9011 Compound optical microscopes, Local value added content is at leastincluding those for photomicro-graphy, 40 percent based on direct methodcinephotomicrography or microprojection or not more than 60 percent based on

indirect method

294. 9012 Microscopes other than opticalmicroscopes; diffraction apparatus.

295. ex 9012 10 - Microscopes other than opticalmicroscopes; diffraction apparatus:

296. - - Electron microscopes fitted with Production from materials other thanequipment specifically designed for those of subheading 9012 10the handling and transport of semi-conductor wafers or reticles


298. 9012 90 - Parts and accessories Local value added content is at least40 percent based on direct method ornot more than 60 percent based onindirect method

299.9013 Liquid crystal devices not constitutingarticles provided for more specificallyin other headings; lasers, other than laserdiodes; other optical appliances andinstruments, not specified or includedelsewhere in this Chapter

300. 9013 80 - Other devices, appliances and Local value added content is at leastinstruments: 40 percent based on direct method or

not more than 60 percent based on in-direct method

301. ex 9013 90 - Parts and accessories:

302. - - For liquid crystal devices (LCD) Production from materials other thanthose of heading 9013

303. - - Other Local value added content is at least40 percent based on direct method or

1. 2 3.


1353


304. 9017 Drawing, marking-out or mathematicalcalculating instruments (for example,drafting machines, pantographs,protractors, drawing sets, slide rules, disccalculators); instruments for measuringlength, for use in the hand (for example,measuring rods and tapes, micrometers,callipers), not specified or includedelsewhere in this chapter

305. 9017 20 - Other drawing marking-out or Production from materials other thanmathematical calculating instruments those of subheading 9017 20, and


306. 9018 Instruments and appliances used in medical,surgical, dental or veterinary sciences,including scientigraphic apparatus, otherelectromedical apparatus and sight-testinginstruments

307. 9018 11 - Electro-diagnostic apparatus (including Production from materials other thanapparatus for functional exploratory those of heading 9018examinations or for checking physiologicalparameters):Electrocardiographs

308. ex 9018 39 - Syringes, needles, catheters,cannulae and the like: other

309. - - Cardiac catheters Production from materials other thanthose of heading 9018

310. ex 9018 90 - Other instruments and appliances

311. - - Surgical tools: bone saws, drills, Production from materials other thantrephines those of heading 9018

312. - - Surgical tools: knives, scissors and Production from materials other thanblades those of heading 9018

313. - - Surgical tools: Forceps, forcep Production from materials other thanclamps, clips, needles holders, those of heading 9018

1. 2 3.


1354

introducers, cephalotribe bone holdingand other holding instruments

314. - - Surgical tools: Chisel, gauges, elevators Production from materials other thanraspatones, osteotome, craniotome, those of heading 9018bone cutters

315. - - Surgical tools: retractors, spatula probes, Production from materials other thanhooks dialators, sounds, mallets those of heading 9018

316. - - Surgical tools: Other Production from materials other thanthose of heading 9018

317. - - Renal dialysis equipment, blood Production from materials other thantransfusion apparatus and those of heading 9018haemofiltration instruments: Renaldialysis equipment (artificial kidneys,kidney machines and dialysers)

318. - - Renal dialysis equipment, blood Production from materials other thantransfusion apparatus and those of heading 9018haemofiltration instruments:Blood transfusion apparatus

319. - - Renal dialysis equipment, blood Production from materials other thantransfusion apparatus and those of heading 9018haemofiltration instruments:Haemofiltration instrument

320. - - Anesthetic apparatus and instruments, Production from materials other thanENT precision instruments, acupuncture those of heading 9018apparatus, and endoscopes: Anaestheticapparatus and instruments

321. - - Anesthetic apparatus and instruments, Production from materials other thanENT precision instruments, acupuncture those of heading 9018apparatus, and endoscopes: ENTprecision instruments

322. - - Anesthetic apparatus and instruments, Production from materials other thanENT precision instruments, acupuncture those of heading 9018apparatus, and endoscopes: Acupunctureapparatus

1. 2 3.


1355

323. - - Anesthetic apparatus and instruments, Production from materials other thanENT precision instruments, acupuncture those of heading 9018apparatus, and endoscopes: Endoscopes

324. - - Other: Hilerial and venous shunt Production from materials other thanthose of heading 9018

325. - - Other: Baby incubators Production from materials other thanthose of heading 9018

326. - - Other: Heartlung machine Production from materials other thanthose of heading 9018

327. - - Other: Fibrescope Production from materials other thanthose of heading 9018

328. - - Other: Laproscope Production from materials other thanthose of heading 9018

329. - - Other: Vetrasonic lithotripsy Production from materials other thaninstruments those of heading 9018

330. - - Other: Apparatus for nerve Production from materials other thanstimulation those of heading 9018

331. - - Other: Other Production from materials other thanthose of heading 9018

332. 9020 Other breathing appliances and gas Production from materials other thanmasks, excluding protective masks having those of heading 9020neither mechanical parts nor replaceablefilters

333. 9021 Orthopaedic appliances, including crutches,surgical belts and trusses; splints and otherfracture appliances; artificial parts of thebody; hearing aids and other applianceswhich are worn or carried, or implantedin the body, to compensate for a defect ordisability

334. 9021 50 - Pacemakers for stimulating heart Production from materials other thanmuscles excluding parts and accessories those of heading 9021

1. 2 3.


1356

335. 9022 Apparatus based on the use of X-rays or ofalpha, beta or gamma radiations, whetheror not for medical, surgical, dental orveterinary uses, including radiography orradiotherapyu apparatus, X-ray tubes andother X-ray generators, high tensiongenerators, control panels and desks, screens,examination or treatment tables, chairs andthe like

336. 9022 12 - Apparatus based on the use of X-rays, Production from materials other thanwhether or not for medical, surgical, those of subheading 9022 12, anddental or veterinary uses, including provided there is a local value addedradiography or radiotherapy apparatus: content of at least 40 percent basedComputed tomography apparatus on direct method or not more than 60

percent based on indirect method337. 9022 13 - Apparatus based on the use of X-rays, Production from materials other than

whether or not for medical, surgical, those of subheading 9022 13, anddental or veterinary uses, including provided there is a local value addedradiography or radiotherapy apparatus: content of at least 40 percent basedOther, for dental uses on direct method or not more than 60

percent based on indirect method338. 9022 14 - Apparatus based on the use of X-rays, Production from materials other than

whether or not for medical, surgical, those of subheading 9022 14, anddental or veterinary uses, including provided there is a local value addedradiography or radiotherapy apparatus: content of at least 40 percent basedOther, for medical surgical or veterinary on direct method or not more thanuses 60 percent based on indirect method

339. 9022 19 - Apparatus based on the use of X-rays, Production from materials other thanwhether or not for medical, surgical, those of subheading 9022 19, anddental or veterinary uses, including provided there is a local value addedradiography or radiotherapy apparatus: content of at least 40 percent basedFor other uses on direct method or not more than 60

percent based on indirect method340. 9022 21 - Apparatus based on the use of alpha, Production from materials other than

beta or gamma radiation, whether or those of subheading 9022 21, andnot for medical,surgical, dental or provided there is a local value addedveterinary uses, including radiography content of at least 40 percent basedor radiotherapy apparatus:for medical on direct method or not more thansurgical dental or veterinary uses 60 percent based on indirect method

341. 9022 29 - Apparatus based on the use of alpha, Production from materials other thanbeta or gamma radiation, whether or not those of subheading 9022 29, and

1. 2 3.


1357

for medical,surgical, dental or veterinary provided there is a local value addeduses, including radiography or content of at least 40 percent basedradiotherapy apparatus: for other uses on direct method or not more than 60

percent based on indirect method

342. 9024 Machines and appliances for testing thehardness, strength, compressibility,elasticity or other mechanical properties ofmaterials (for example, metals, wood,textiles, paper, plastics)

343. 9024 10 - Machines & appliances for testing Production from materials other thanmetals those of subheading 9024 10, and


344. 9024 80 - Other machines and appliances: Production from materials other thanthose of subheading 9024 80, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

345. 9025 Hydrometers and similar floatinginstruments, thermometers, pyrometers,barometers, hygrometers and psychrometers,recording or not, and any combinationof these instruments

346. ex 9025 19 - Thermometers and pyrometers notcombined with other instruments: Other

347. - - Pyrometers Production from materials other than

those of subheading 9025 19, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

348. - - Others Production from materials other thanthose of subheading 9025 19, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

1. 2 3.


1358

349. 9026 Instruments and apparatus for measuringor checking the flow, level, pressure or othervariables of liquids or gases (for example,flow meters, level gauges, manometers,heat meters), excluding instruments andapparatus of heading 9014, 9015, 9028or 9032

350. 9026 10 - For measuring or checking the flow or Production from materials other thanlevel of liquids those of subheading 9026 10, and


351. 9026 20 - For measuring or checking pressure Production from materials other thanthose of subheading 9026 20, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

352. 9026 80 - Other instruments and apparatus Production from materials other thanthose of subheading 9026 80, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

353. 9026 90 - Parts and accessories Production from materials other thanthose of subheading 9026 90, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

354. 9027 Instruments and apparatus for physicalor chemical analysis (for example,polarimeters, refractometers, spectrometers,gas or smoke analysis apparatus); instrumentsand apparatus for measuring or checkingviscosity, porosity, expansion, surfacetension or the like; instruments andapparatus for measuring or checkingquantities of heat, sound or light (includingexposure meters); microtomes

355. 9027 10 - Gas or smoke analysis apparatus Production from materials other thanthose of subheading 9027 10, and

1. 2 3.


1359


356. 9027 20 - Chromatographs and electrophoresis Production from materials other thaninstruments those of subheading 9027 20, and


357. 9027 30 - Spectrometers spectrophotometers & Production from materials other thanspectrographs using optical radiations those of subheading 9027 30, and(UV, visible, IR) provided there is a local value added


358. 9027 50 - Other instruments & apparatus using Production from materials other thanoptical radiations (UV, visible, IR) those of subheading 9027 50, and


359. ex 9027 90 - Microtomes; parts and accessories:

360. - - Printed circuit assemblies for the Production from materials other thangoods of sub-heading 9027 80 those of heading 9027

361. 9029 Revolution counters, production counters,taximeters, mileometers, pedometers andthe like; speed indicators and tachometers,other than those of heading 9014 or 9015;stroboscopes

362. 9029 10 - Revolution counters, production counters Production from materials other thantaximeters mileometers pedometers & those of subheading 9029 10, andthe like provided there is a local value added


363. ex 9029 20 - Speed indicators and tachometers;stroboscopes

364. - - Tachometers, non-electrical Production from materials other than

those of subheading 9029 20, andprovided there is a local value added

1. 2 3.


1360


365. - - Stroboscopes Production from materials other thanthose of subheading 9029 20, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

366. - - Other Production from materials other thanthose of subheading 9029 20, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

367. 9029 90 - Parts and accessories Production from materials other thanthose of subheading 9029 90, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

368. 9030 Oscilloscopes, spectrum analysers andother instruments and apparatus formeasuring or checking electrical quantities,excluding meters of heading of 9028;instruments and apparatus for measuringor detecting alpha, beta, gamma, X-ray,cosmic or other ionising radiations.

369. 9030 40 - Other instruments and apparatus, Production from materials other thanspecially designed for telecommunica- those of subheading 9030 40tions (for example, cross-talk meters,gain measuring instruments, distortionfactor meters, psophometers)

370. 903082 - Other instruments and apparatus: For Production from materials other thanmeasuring or checking semiconductor those of subheading 9030 82wafers or devices

371. ex 9030 89 - Other instruments and apparatus: Other

372. - - Scintillator counters Production from materials other thanthose of subheading 9030 89, andprovided there is a local value addedcontent of at least 40 percent based

1. 2 3.


1361


373. 9031 Measuring or checking instruments,appliances and machines, not specified orincluded elsewhere in this Chapter;profile projectors

374. 9031 41 - Other optical instruments and appliances: Production from materials other thanfor inspecting semiconductor wafers those of subheading 9031 41devices or for inspecting photo-masksor reticles used in manufacturing semi-conductor devices

375. 9032 Automatic regulating or controllinginstruments and apparatus.

376. ex 9032 10 - Thermostats

377. - - For refrigerating and air-conditioning Production from materials other thanappliances and machinery those of subheading 9032 10, and


378. 9032 81 - Other instruments and apparatus: Production from materials other thanhydraulic or pneumatic those of subheading 9032 81, and


379. ex 9032 89 - Other instruments and apparatus: other

380. - - Electronic automatic regulators Production from materials other thanthose of subheading 9032 89, andprovided there is a local value addedcontent of at least 40 percent basedon direct method or not more than 60percent based on indirect method

1. 2 3.


1362

ATTACHMENT 1Original (Duplicate/Triplicate/Quadruplicate)

1. Goods consigned from Exporter’s Reference No.business name, address, country INDIA-SINGAPORE

COMPREHENSIVE ECONOMIC CO-2. Goods consigned to (Consignee’s OPERATION

name, address, country) AGREEMENT(Combined Declaration and Certificate)

Issued in Singapore

3. Means of transport and route (as far See Notes Overleafas known) 4. For Official UseDeparture date Preferential Treatment Given under ISCECA

Vessel’s name/Aircraft etc. Preferential Treatment Not Given (Please state reason/s

Port of Discharge .................................................................Signature of Authorised Signatory of the ImportingCountry

5. Item 6. Marks and 7. Number and type of 8 Origin 9 Gross 10. NumberNo. number of packages; description of criterion weight and date

packages goods (including quantity and value of invoicewhere appropriate and HS (FOB)code of the importing country)

11. Declaration by the exporter 12. CertificationThe undersigned hereby declares that theabove details and statement are correc; that It is hereby certified, on the basis of controlall the goods wehre produced in carried out, that the declaration by the exporter

is correct..............................................................

(Country)

and that the comply with the origin requirementsspecified for those goods in ISCECA for goodsexported to ........................................................................................................................................ Place and date, signature and stamp of certi- (reporting country) fying authority................................................................Place and date signature of authorised signatory


1363

OVERLEAF NOTES

1. India and Singapore will accept this form for the purpose of preferential treatment under the INDIA-SINGAPORE Comprehensive Economic Co-operation Agreement.

2. CONDITIONS: The main conditions for admission to the preferential treatment under the INDIA-SINGAPORE Comprehensive Economic Co-operation Agreement are that goods sent to the Parties:

(i) must fall within a description of products eligible for concessions in the country of destination;(ii) must comply with the consignment conditions that the goods must be consigned directly from

exporting Party to the importing Party but transport that involves passing through one or moreintermediate countries, is also accepted provided that any intermediate transit, transshipment ortemporary storage arises only for geographic reasons or transportation requirements; and

(iii) must comply with the origin criteria given in the next paragraph.

3. ORIGIN CRITERIA: For exports to be eligible for preferential treatment, the requirement is thateither:(i) The products wholly obtained as defined in Article 3.3 of the Chapter on Rules of Origin;(ii) The products not wholly produced or obtained in the exporting Party as defined in Article 3.4 of

the Chapter on Rules of Origin;(iii) Products which comply with origin requirements provided for in Article 3.2 of the Chapter on

Rules of Origin and which are used in the other Party as inputs for a finished product eligible forpreferential treatment shall be considered as a product originating in the other Party providedthe finished product in the other Party meets the requirements defined in Article 3.4 of theChapter on Rules of Origin; or

(iv) Products which satisfy the Product Specific Rules provided for in Annex 3A of the Chapter onRules of Origin shall be considered as goods to which sufficient transformation has been car-ried out in a Party.

If the goods qualify under the above criteria, the exporter must indicate in Box 8 of this form theorigin criteria on the basis of which he claims that his goods qualify for preferential treatment, in themanner shown in the following table:

Circumstances of production or manufacture Insert in Box 8in the first country named in Box 11 of this form

(a) Products wholly produced in the country “X”of exportation (see paragraph 3 (i) above)

(b) Products worked upon but not wholly Percentage of single countrypro duced in the exporting Party content, example 40%which were produced in conformity with theprovisions of paragraph 3 (ii) above

(c) Products worked upon but not wholly Percentage of ISCECAproduced in the exporting Party which were cumulative content, exampleproduced in conformity with the 40%provisions of paragraph 3 (iii) above

(d) Products satisfied the Product “Product Specific Rules”Specific Rules as defined in Article 3.4(b)of the Chapter on Rules of Origin


1364

4. EACH ARTICLE MUST QUALIFY: It should be noted that all the products in a consignment mustqualify separately in their own right. This is of particular relevance when similar articles of differentsizes or spare parts are sent.

5. DESCRIPTION OF PRODUCTS: The description of products must be sufficiently detailed to enablethe products to be identified by the Customs Officers examining them. Name of manufacturer, anytrade mark shall also be specified.

6. The Harmonised System number shall be that of the importing Party.7. The term “Exporter” in Box 11 may include the manufacturer or the producer.8. FOR OFFICIAL USE: The Customs Authority of the importing Party must indicate (Ö) in the relevant

boxes in column 4 whether or not preferential treatment is accorded.


Exemption to specified goods falling under various chapters:[Notifn. No. 101/07-Cus., dt.11.9.2007 as amended by 116/11]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts goods of the description as specified in column (3) of the Table appended hereto and falling underthe Heading, Sub-heading or Tariff Item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)as specified in the corresponding entry in column (2) of the said Table, when imported into India from theRepublic of Chile, from so much of that portion of the applied rate of duty of customs leviable thereon as isspecified in the corresponding entry in column (4) of the said Table:Provided that the importer proves to the satisfaction of the Deputy Commissioner of Customs or AssistantCommissioner of Customs, as the case may be, that the goods in respect of which the benefit of this exemp-tion is claimed are of the origin of the Republic of Chile, in accordance with provisions of the Determinationof Origin of Goods under the Preferential Trading Agreement between the Republic of India and the Repub-lic of Chile Rules, 2007, published in the notification of the Government of India in the Ministry of Finance(Department of Revenue), No.84/2007-Customs (N.T.), dated the 17th August, 2007.Explanation. - For the purposes of this notification, “applied rate of duty” means the standard rate of dutyspecified in the First Schedule to the said Customs Tariff Act, 1975 in respect of the goods specified in thesaid Table, read with any other notification for the time being in force, issued in respect of such goods undersub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962).

TableS.No. Heading,SubheadingorTariffItem Description Extent of tariffconcessions

(percentage of the appliedrate of duty)

(1) (2) (3) (4)

1 02032100 All goods 15%2 02032200 All goods 15%3 02032900 All goods 15%4 02062100 All goods 15%5 02062200 All goods 15%6 02062900 All goods 15%7 02064100 All goods 15%


1365

8 02064900 All goods 15%9 02071400 All goods 15%10 02072700 All goods 15%11 02101100 All goods 15%12 02101200 All goods 15%13 02101900 All goods 15%14 02102000 All goods 15%15 03021100 All goods 20%16 03021300 All goods 20%17 03024200 All goods 20%18 03024500 All goods 20%19 03024600 All goods 20%20 03025400 All goods 20%21 03025500 All goods 20%22 03025600 All goods 20%23 03025900 All goods 20%24 03027100 All goods 20%25 03027200 All goods 20%26 03027300 All goods 20%27 03027900 All goods 20%28 03028200 All goods 20%29 03028400 All goods 20%30 03028500 All goods 20%31 03031100 All goods 20%32 03031200 All goods 20%33 03031300 All goods 20%34 03031400 All goods 20%35 03032300 All goods 20%36 03032400 All goods 20%37 03032500 All goods 20%38 03032900 All goods 20%39 03035300 All goods 20%40 03035400 All goods 20%41 03035500 All goods 20%42 03035600 All goods 20%43 03036600 All goods 20%44 03036700 All goods 20%45 03036800 All goods 20%46 03036900 All goods 20%47 03038200 All goods 20%48 03038400 All goods 20%49 03038910 All goods 20%50 03038920 All goods 20%51 03038930 All goods 20%52 03038940 All goods 20%

(1) (2) (3) (4)


1366


(1) (2) (3) (4)


1367


(1) (2) (3) (4)


1368

143 16025000 All goods 15%144 16041100 All goods 20%145 16041310 All goods 20%146 16041320 All goods 20%147 16041500 All goods 20%148 16041600 All goods 20%149 16041700 All goods 20%150 16041900 All goods 20%151 16042000 All goods 20%152 16051000 All goods 20%153 16052100 All goods 20%154 16052900 All goods 20%155 16055100 All goods 20%156 16055200 All goods 20%157 16055300 All goods 20%158 16055400 All goods 20%159 16055500 All goods 20%160 16055600 Clams 20%161 16055700 All goods 20%162 16055800 All goods 20%163 16055900 All goods 20%164 16056100 All goods 20%165 16056200 All goods 20%166 16056300 All goods 20%167 16056900 All goods 20%168 20057000 All goods 20%169 23012011 All goods 20%170 23091000 All goods 15%171 25010020 All goods 20%172 26030000 All goods 10%173 28012000 All goods 20%174 28276010 All goods 20%175 28299030 All goods 20%176 28369100 All goods 20%177 28391900 All goods 20%178 28417020 All goods 20%179 28480090 All goods 20%180 2852 Phosphides 20%181 29061990 Terpineols 20%182 29153920 All goods 20%183 29153930 All goods 20%184 29153950 All goods 20%185 29153960 All goods 20%186 29157030 All goods 20%187 31043000 All goods 20%

(1) (2) (3) (4)


1369

188 31059010 All goods 20%189 31059090 All goods 20%190 34029011 All goods except laundry soaps 20%191 34029012 All goods except laundry soaps 20%192 34029019 All goods except laundry soaps 20%193 34029041 All goods except laundry soaps 20%194 34029042 All goods except laundry soaps 20%195 34029049 All goods except laundry soaps 20%196 34029051 All goods except laundry soaps 20%197 34029052 All goods except laundry soaps 20%198 34029059 All goods except laundry soaps 20%199 34029091 All goods except laundry soaps 20%200 34029092 All goods except laundry soaps 20%201 34029099 All goods except laundrysoaps 20%202 41041100 All goods 50%203 41041900 All goods 50%204 41044100 All goods 50%205 41044900 All goods 50%206 41079200 All goods 50%207 43031020 All goods 50%208 43031090 All goods 50%209 44081010 All goods 20%210 44081020 All goods 20%211 44081030 All goods 20%212 441011 All goods (other than wafer board) 20%

(a) unworked or not further worked than sanded; or(b) surface-covered with melamine impregnated paper

213 4411 Fibreboard of a density exceeding 0.35 g/cm3 20%214 44123910 All goods 20%215 44123930 All goods 20%216 44123940 All goods 20%217 44123990 All goods 20%218 44152000 All goods 20%219 44181000 All goods 20%220 44182010 All goods 20%221 44182020 All goods 20%222 44182090 All goods 20%223 44219011 All goods 20%224 44219012 All goods 20%225 44219013 All goods 20%226 44219014 All goods 20%227 44219019 All goods 20%228 44219020 All goods 20%229 44219050 All goods 20%230 44219070 All goods 20%

(1) (2) (3) (4)


1370

231 47032100 All goods 20%232 47032900 All goods 20%233 48010010 All goods 20%234 48010090 All goods 20%235 48239013 All goods 20%236 48239014 All goods 20%237 48239016 All goods 20%238 48239019 All goods 20%239 51011100 All goods 25%240 51031010 All goods 25%241 51031090 All goods 25%242 72042190 All goods 20%243 89040000 All goods 20%_______________________________________________________________________________________________________________________________________


Exemption to specified goods falling under various chapters:[Notifn. No. 10/08-Cus., dt.15.1.2008 as amended by 70/09, 150/09, 131/10,106/11, 36/12, 61/12, 50/13, 17/14, 1/15]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts goods of the description as specified in column (3) of the Table appended hereto and falling underthe tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as specified in the corre-sponding entry in column (2) of the said Table, when imported into India from the Republic of Singapore,from so much of the duty of customs leviable thereon as is in excess of the amount calculated at the ratespecified in the corresponding entry in column (4) of the aforesaid Table:

Provided that the importer proves to the satisfaction of the Deputy Commissioner of Customs orAssistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit ofthis exemption is claimed are of the origin of Republic of Singapore, in accordance with the provisions ofthe Rules of Origin, published in the notification of the Government of India in the Ministry of Finance(Department of Revenue), No. 59/2005-Customs (N.T.), dated the 20th July, 2005.

TableS. No. Tariff item of Description of goods Rate

the First Schedule

(1) (2) (3) (4)

1 14019010 All goods 0.00%1 14019010 All goods 0.00%2 15180031 All goods 8.89%3 15180039 All goods 3.33%4 15180040 All goods 8.89%5 18061000 All goods 3.33%6 18062000 All goods 3.33%

(1) (2) (3) (4)


1371

7 18063100 All goods 0.00%8 19011010 All goods 0.00%9 19011090 All goods 0.00%10 19012000 All goods 0.00%11 19021900 All goods 0.00%12 19041010 All goods 0.00%13 19041020 All goods 0.00%14 19041030 All goods 0.00%15 19041090 All goods 0.00%16 19059010 All goods 3.33%17 19059020 All goods 3.33%18 19059030 All goods 3.33%19 19059040 All goods 3.33%20 19059090 All goods 3.33%21 22011010 All goods 0.00%22 22011020 All goods 0.00%23 22029010 All goods 3.33%24 22029020 All goods 3.33%25 22029030 All goods 3.33%26 22029090 All goods 3.33%27 26190010 All goods 0.00%28 26190090 All goods 0.00%29 27075000 All goods 0.00%30 27079900 All goods 0.00%31 27111300 All goods 0.00%32 27111900 All goods 0.00%33 28369910 All goods 0.00%34 28369920 All goods 0.00%35 28369930 All goods 0.00%36 28369990 All goods 0.00%37 29012300 All goods 0.00%38 29031500 All goods 0.00%39 29032100 All goods 0.00%40 29051220 All goods 5.28%41 29051300 All goods 0.00%42 29051620 All goods 0.00%43 29051900 All goods 6.67%44 29053200 All goods 5.28%45 29071110 All goods 5.28%46 29071190 All goods 5.28%47 29071300 All goods 0.00%48 29152100 All goods 5.28%49 29152400 All goods 0.00%50 29153100 All goods 0.00%51 29157010 All goods 5.28%

(1) (2) (3) (4)


1372


(1) (2) (3) (4)


1373

97 32151990 All goods 0.00%98 32159010 All goods 0.00%99 32159020 All goods 0.00%100 32159030 All goods 0.00%101 32159040 All goods 0.00%102 32159090 All goods 0.00%103 33029011 All goods 5.56%104 33029012 All goods 5.56%105 33029019 All goods 5.56%106 33029020 All goods 5.56%107 33029090 All goods 5.56%108 33051010 All goods 0.00%109 33072000 All goods 0.00%110 33079010 All goods 0.00%111 33079020 All goods 0.00%112 33079090 All goods 0.00%113 34021200 All goods 5.56%114 34021300 All goods 5.56%115 34021900 All goods 0.00%116 34022010 All goods 0.00%117 34022020 All goods 0.00%118 34022090 All goods 0.00%119 34039900 All goods 5.28%120 34049010 All goods 0.00%121 34049020 All goods 0.00%122 34049031 All goods 0.00%123 34049032 All goods 0.00%124 34049033 All goods 0.00%125 34049039 All goods 0.00%126 34049090 All goods 0.00%127 35051010 All goods 6.67%128 35051090 All goods 6.67%129 35061000 All goods 5.56%130 37079090 All goods 5.56%131 38085000 Aldrin, Chlordane, 6.67%

Chlorobenzilate, DDT(ISO), Heptachlor (ISO),Parathion Methyl, Lindane

132 38089111 All goods 6.67%133 38089112 All goods 6.67%134 38089113 All goods 6.67%135 38089121 All goods 6.67%136 38089122 All goods 6.67%137 38089123 All goods 6.67%138 38089124 All goods 6.67%

(1) (2) (3) (4)


1374

139 38089131 All goods 6.67%140 38089132 All goods 6.67%141 38089133 All goods 6.67%142 38089134 All goods 6.67%143 38089135 All goods 6.67%144 38089136 All goods 6.67%145 38089137 All goods 6.67%146 38089191 All goods 6.67%147 38089192 All goods 6.67%148 38089199 All goods 6.67%149 38089210 All goods 0.00%150 38089220 All goods 0.00%151 38089230 All goods 0.00%152 38089240 All goods 0.00%153 38089250 All goods 0.00%154 38089290 All goods 0.00%155 38091000 All goods 0.00%156 38170011 All goods 5.28%157 38170019 All goods 5.28%158 38231200 All goods 0.00%159 39011010 All goods 0.60%160 39011090 All goods 0.60%161 39012000 All goods 0.60%162 39013000 All goods 0.56%163 39019010 All goods 0.60%164 39019090 All goods 0.60%165 39021000 All goods 0.60%166 39023000 All goods 0.60%167 39029000 All goods 0.56%168 39031910 All goods 0.60%169 Omitted170 39053000 All goods 0.00%171 39061010 All goods 5.28%172 39061090 All goods 5.28%173 39072010 All goods 0.00%174 39072090 All goods 0.00%175 39073010 All goods 0.83%176 39073090 All goods 0.83%177 39079910 All goods 0.83%178 39079920 All goods 0.83%179 39079990 All goods 0.83%180 39081010 All goods 1.11%181 39081090 All goods 1.11%182 39089010 All goods 1.11%183 39089020 All goods 1.11%

(1) (2) (3) (4)


1375


(1) (2) (3) (4)


1376

229 39269059 All goods 5.56%230 39269061 All goods 5.56%231 39269069 All goods 5.56%232 39269071 All goods 5.56%233 39269079 All goods 5.56%234 39269080 All goods 5.56%235 39269091 All goods 5.56%236 39269099 All goods 5.56%237 40169990 All goods 5.56%238 49070010 All goods 0.00%239 49070020 All goods 0.00%240 49070090 All goods 0.00%241 50060090 All goods 0.00%242 52082990 All goods 5.56%243 52083390 All goods 5.56%244 52083990 All goods, other than 5.56%

upholstery fabrics245 52083990 Upholstery fabrics 5.56% or

whichever is higher Rs. 150 per kg246 52085990 All Goods 5.56%247 52092990 All goods 5.56%248 54023100 All goods 1.11%249 54023200 All goods 1.11%250 54023300 All goods 0.83%251 54024900 All goods 1.11%252 54025100 All goods 1.11%253 54041100 All goods 1.11%254 55020010 All goods 0.00%255 55020020 All goods 0.00%256 55020090 All goods 0.00%257 59039010 All goods 5.56%258 59039020 All goods 5.56%259 59039090 All goods 5.56%260 59061000 All goods 0.00%261 60011010 All goods 1.11%262 60011020 All goods 1.11%263 60011090 All goods 1.11%264 60012100 All goods 1.11%265 60012200 All goods 1.11%266 60012900 All goods 0.00%267 60019100 All goods 0.00%268 60019200 All goods 1.11%269 60019910 All goods 0.00%270 60019990 All goods 0.00%

(1) (2) (3) (4)


1377


1. 2 3.


1378


(1) (2) (3) (4)


1379


(1) (2) (3) (4)


1380


(1) (2) (3) (4)


1381


(1) (2) (3) (4)


1382

496 87084000 All goods 0.00%497 87087000 All goods 5.56%498 87089100 Radiators 1.11%499 87089900 All goods 5.56%500 90084000 All goods 0.00%501 90151000 All goods 0.00%502 90154000 All goods 0.00%503 90189094 All goods 0.00%504 90282000 All goods 0.00%505 94032010 All goods 0.00%506 94032090 All goods 0.00%507 94033010 All goods 5.56%508 94033090 All goods 5.56%509 94036000 All goods 1.11%510 94038100 All goods 0.00%511 94038900 All goods 0.00%512 94039000 All goods 0.00%513 94054010 All goods 0.00%514 94054090 All goods 0.00%515 95041000 All goods 0.00%516 95042000 All goods 0.00%517 95069110 All goods 0.00%518 95069190 All goods 0.00%519 96061010 All goods 0.00%520 96061020 All goods 0.00%521 96062910 All goods 0.00%522 96062990 All goods 0.00%523 96071110 All goods 0.00%524 96071190 All goods 0.00%525 96071910 All goods 0.00%526 96071990 All goods 0.00%527 96072000 All goods 0.00%528 96121010 All goods 1.11%529 96121020 All goods 1.11%530 96121030 All goods 1.11%531 96121090 All goods 1.11%532 96190010 All goods 5.56%____________________________________________________________________________________________________________

GENERAL EXEMPTION NO.98A

Exemption to goods imported from Antarctica into India:[Notifn. No. 90/09-Cus., dt.7.9.2009]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby

(1) (2) (3) (4)

GENERAL EXEMPTION NO. 98A

1383

exempts all goods imported from Antarctica into India from the whole of the duty of customs leviable thereonwhich is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and from the whole ofthe additional duties leviable thereon under section 3 of the said Customs Tariff Act , provided that a certifi-cate from an officer not below the rank of a Deputy Secretary in the Department of Ocean Development inthe Ministry of Earth Sciences is produced in each case by the importer to the jurisdictional Assistant Com-missioner or Deputy Commissioner of Customs at the time of importation, to the effect that such goods havebeen used for or are related to the Indian Antarctic Expedition or the Indian Polar Science Programme.

GENERAL EXEMPTION NO.98B

Exemption to specified goods falling under various chapters excluding in chapters 1 to 24:[Notifn. No. 91/09-Cus., dt.11.9.2009 as amended by 123/09, 90/10, 40/11, 37/12, 40/12, 50/12, 4/13, 20/13, 24/13, 5/15]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts goods, namely, -

(i) in the case of hotel or stand alone restaurant or golf resort having catering facility, capital goodsincluding spares, office equipment, professional equipment, office furniture, consumables, related to its ser-vice sector business and food items and alcoholic beverages but excluding other products classifiable inChapters 1 to 24 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and items not permittedto be imported in terms of Appendix 37B of the Hand Book of Procedures, volume I;

(ii) in the case of service provider other than hotel or stand alone restaurant or golf resort having cater-ing facility, capital goods including spares, office equipment, professional equipment, office furniture andconsumables, related to its service sector business, but excluding the items not permitted to be imported interms of Appendix 37B of the Hand Book of Procedure ,volume I,(iii) in the case of service provider who is also engaged in manufacturing activity, capital goods includingspares related to its manufacturing sector business, but excluding the items not permitted to be imported interms of Appendix 37B of the Hand Book of Procedure, volume I,when imported into India against a Served From India Scheme scrip (hereinafter referred to as the said scrip)issued under paragraph 3.12 of the Foreign Trade Policy, from,

(1) the whole of the duty of customs leviable thereon under the First Schedule to the saidCustoms Tariff Act, 1975(51 of 1975); and

(2) Exemption under this notification shall not be available for import of vehicles even if suchvehicles are freely importable under the Foreign Trade Policy. However, the vehicles whichare in the nature of professional equipment (and are not personal vehicles) for use by theservice provider in his regular service business shall be permitted.

For this purpose, motor cars, sports utility vehicles and all purpose vehicles for the service providerhotels, travel agents, tour operators or tour transport operators and companies owning or operating golfresorts shall not be regarded as personal vehicles subject to the condition that the customs authority endorsesthe bill of entry at the time of clearance specifying that the vehicle shall be registered as vehicle for “touristpurpose only” and the vehicle is so regis-tered and a copy of the registration certificate to that effect issubmitted to the concerned Customs authority as a confirmation of import of vehicle within six months fromthe date of import and the said vehicle is used for tourist purpose only.

GENERAL EXEMPTION NO. 98B

1384

subject to the following conditions, namely :-

i. that the said scrip has been issued to a service provider by the Regional Authority and it isproduced before the proper officer of customs at the time of clearance for debit of the dutiesleviable on the goods, but for this exemption:

(ia) that in the case of capital goods including spares covered at sub-paragraph (iii) above themanufacturing sector business of the service provider has been endorsed by the RegionalAuthority on the said scrip during the period of validity of the said scrip and upon suchendorsement, the validity of the said scrip remains unchanged

ii. that the said scrip and goods imported against it shall not be transferred or sold:

Provided that, except in case of goods covered at sub-paragraph (iii) above, transfer ofgoods or said scrip may be allowed subject to actualuser condition within the group com-pany or managed hotels as defined in paragraph9.28and paragraph 9.35 respectively of theForeign Trade Policy, as the case may be.

(iia) that the capital goods including spares covered at sub-paragraph (iii) above shall be subjectto actual user condition and the importer at the time of clearance of the said goods shallfurnish an undertaking to this effect to the Deputy Commissioner of Customs or AssistantCommissioner of Customs, as the case may be, that in case of non compliance of the saidcondition, he shall pay on demand an amount equal to the duty leviable, but for the exemp-tion contained herein together with interest at the rate of fifteen percent per annum from thedate of clearance of the said materials

iii. that in respect of capital goods, office equipment and professional equipment a certificatefrom jurisdictional Deputy Commissioner of Central Excise or Assistant Commissioner ofCentral Excise or an independent Chartered Engineer, as the case may be, is producedconfirming installation and use of the goods in the importer’s factory or premises, withinsix months from the date of imports or within such extended period as the Deputy Commis-sioner of Customs or Assistant Commissioner of Customs, as the case may be, may allow;

iv. that the imports and exports are undertaken through seaports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkataport) Kakinada, Kandla, Kattupalli (Tamil Nadu), Kolkata, Krishnapatnam, Ennore (TamilNadu) and Karaikal (Union territory of Puducherry) Magdalla, Mangalore, Marmagoa,Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav,Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports atAhmedabad, Bangalore, Bhubaneswar, Calicut, Chennai, Cochin, Coimbatore, Dabolim (Goa),Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi(Amritsar), Srinagar, Trivandrum , Varanasi and Visakhapatnamor through any of the In-land Container Depots at Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Ban-galore, 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, Marripalem Village in Taluk of Edlapadu, District Guntur and Tondiarpet (TNPM),Chennai and Irungattukottai, SIPCOT IndustrialPark, Kattrambakkam Village,Sriperumbudur Taluk, Kanchipuram District, Tamil Nadu and Melapakkam Village

GENERAL EXEMPTION NO. 98B

1385

(Arakkonam Taluk, Vellore District) 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) Talegoan (DistrictPune), Dhannad Rau (District Indore), Kheda (Pithampur, District Dhar) and Patli (Gurgaon)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 EconomicZone 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 specialorder, 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 orthrough any land customs station.

2. Exemption under this notification shall not be available for import of vehicles even if such vehiclesare freely importable under the Foreign Trade Policy. However, the vehicles which are in the nature ofprofessional equipment (and are not personal vehicles) for use by the service provider in his regular servicebusiness shall be permitted.

Explanation .- For the purposes of this notification ,-(i) “Capital goods” has the same meaning as assigned to it in paragraph 9.12 of the Foreign TradePolicy;(ii) “Foreign Trade Policy” means the Foreign Trade Policy 2009-2014, published by the Government ofIndia 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 appointedunder section 6 of the Foreign Trade (Development and Regulation ) Act,1992 (22 of 1992) or an officerauthorised by him to grant a licence under the said Act.

GENERAL EXEMPTION NO.98C

Exemption to goods when imported into India against a duty credit scrip issued under the FocusProduct Scheme:[Notifn. No. 92/09-Cus., dt.11.9.2009 as amended by 123/09, 37/12, 40/12, 44/12, 50/12, 4/13, 20/13, 29/13, 38/13, 5/15]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts goods when imported into India against a duty credit scrip issued under the Focus Product Schemein accordance with paragraph 3.15 of the Foreign Trade Policy (hereinafter referred to as the said scrip)from,-

(a) the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act,1975 (51 of 1975); and

(b) the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act,subject to the following conditions, namely :-

GENERAL EXEMPTION NO. 98C

1386

i. that the benefit under this notification shall be available only in respect of duty credit scripissued against exports of the products notified in Appendix 37-D of the Handbook of Proce-dures, Vol.I of the Foreign Trade Policy;

ii. that the said scrip is produced before the proper officer of customs at the time of clearancefor debit of the duties leviable on the goods and the proper officer of customs taking intoaccount the debits already made under this exemption and debits made under the notificationNo. 29 of 2012-Central Excise, dated the 9th July, 2012 and 7 of 2013- Service Tax, dt. the18 th April, 2013 shall debit the duties leviable on the goods, but for this exemption

iii. that the said scrip and goods imported against it shall be freely transferable ;

iv. 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, Kattupalli (Tamil Nadu), Kolkata, Krishnapatnam, Ennore (Tamil Nadu) and Karaikal(Union territory of Puducherry) 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, Calicut, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore,Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar,Trivandrum , Varanasi and Visakhapatnam or through any of the Inland Container Depots atAgra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda,Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (DeraBassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Durgapur (ExportPromotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Marripalem Village in Talukof Edlapadu, District Guntur and Tondiarpet (TNPM), Chennai and Irungattukottai, SIPCOTIndustrialPark, Kattrambakkam Village, Sriperumbudur Taluk, Kanchipuram District, TamilNadu and Melapakkam Village (Arakkonam Taluk, Vellore District) 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) Talegoan (District Pune), Dhannad Rau (District Indore), Kheda (Pithampur,District Dhar) and Patli (Gurgaon) or through the Land Customs Station at Agartala, AmritsarRail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur,Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandior 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 specialorder, or by a Public Notice, and subject to such conditions as may be specified by him,permits import and export from any other seaport/airport/inland container depot or throughany land customs station;

Provided further that the exports may also be undertaken through the Foreign PostOffice at New Delhi.

GENERAL EXEMPTION NO. 98C

1387

v. that where the importer does not claim exemption from the additional duty of customs levi-able under section 3 of the said Customs Tariff Act, he shall be deemed not to have availedthe exemption from the said duty for the purpose of calculation of the said additional duty ofcustoms;

vi. that the importer shall be entitled to avail of the drawback or CENVAT credit of additionalduty leviable under section 3 of the said Customs Tariff Act against the amount debited in thesaid scrip;

vii. that the benefits under this notification shall not be available to the items listed in Appendix37B of the Hand Book of Procedures ,volume I.

2. The following categories of exports specified in paragraph 3.17.2 of the Foreign Trade Policy shallnot be counted for calculation of export performance or for computation of entitlement under the scheme:

i. EOUs / EHTPs / BTPs who are availing direct tax benefits / exemption;ii. Export of imported goods covered under Para 2.35 of FTP;iii. Exports through transshipment, meaning thereby that exports originating inthird country but transshippedthrough India;iv. Deemed Exports;v. Exports made by SEZ units or SEZ products exported through DTA units; andvi. Items, which are restricted or prohibited for export under Schedule-2 of ExportPolicy in ITC (HS).Explanation:- In this notification-(i) “Capital goods” has the same meaning as assigned to it in paragraph 9.12 of

the Foreign Trade Policy;(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) “Goods” means any inputs, or goods including capital goods.

GENERAL EXEMPTION NO.98D

Exemption to goods when imported into India against a duty credit scrip issued under the FocusMarket Scheme:[Notifn. No. 93/09-Cus., dt.11.9.2009 as amended by 123/09, 37/12, 40/12, 44/12, 50/12,4/13, 20/13, 32/13, 29/13, 38/13, 52/13, 7/14, 5/15]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts goods when imported into India against a duty credit scrip issued under the Focus Market Schemein accordance with paragraph 3.14 of the Foreign Trade Policy (hereinafter referred to as the said scrip)from,-(a) the whole of the duty of customs leviable thereon under the First Schedule to the Customs TariffAct, 1975 (51 of 1975); and(b) the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act,


i. that the benefit under this notification shall be available only in respect of duty credit scripissued against exports to the countries notified in Appendix 37-C of the Handbook of Pro-

GENERAL EXEMPTION NO. 98D

1388

cedures, Volume I of the Foreign Trade Policy;

(a) in the opening paragraph, in condition (i), for the words and figure “Volume I of the ForeignTrade Policy”, the words and figures “ Volume I in terms of entitlement under paragraph 3.14.2 or against exports to the countries or regions specified in paragraphs 3.14.4(e) or3.14.5(e) of the Foreign Trade Policy, as the case may be

ii. that the said scrip is produced before the proper officer of customs at the time of clearancefor debit of the duties leviable on the goods and the proper officer of customs taking intoaccount the debits already made under this exemption and debits made under the notificationNo. 30 of 2012-Central Excise, dated the 9th July, 2012 and 6 of 2013- Service Tax, dt. the18 th April, 2013thshall debit the duties leviable on the goods, but for this exemption


iv. 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, Kattupalli (Tamil Nadu),Kolkata, Krishnapatnam, Ennore (Tamil Nadu) and Karaikal(Union territory of Puducherry) 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, Calicut, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad,Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar,Trivandrum , Varanasi and Visakhapatnam or through any of the Inland Container Depots atAgra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda,Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (DeraBassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Durgapur (ExportPromotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Marripalem Village in Talukof Edlapadu, District Guntur and Tondiarpet (TNPM), Chennai and Irungattukottai, SIPCOTIndustrialPark, Kattrambakkam Village, Sriperumbudur Taluk, Kanchipuram District, TamilNadu and Melapakkam Village (Arakkonam Taluk, Vellore District) 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) Talegoan (District Pune), Dhannad Rau (District Indore), Kheda (Pithampur,District Dhar) and Patli (Gurgaon) or through the Land Customs Station at Agartala, AmritsarRail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur,Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandior 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 specialorder, or by a Public Notice, and subject to such conditions as may be specified by him,permits import and export from any other seaport/airport/inland container depot or throughany land customs station;

Provided further that the exports may also be undertaken through the Foreign Post


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Office at New Delhi

v. that where the importer does not claim exemption from the additional duty of customs levi-able under section 3 of the said Customs Tariff Act, he shall be deemed not to have availedthe exemption from the said duty for the purpose of calculation of the said additional duty ofcustoms;

vi. that the importer shall be entitled to avail of the drawback or CENVAT credit of additionalduty leviable under section 3 of the said Customs Tariff Act against the amount debited in thesaid scrip;

vii. that the benefits under this notification shall not be available to the items listed in Appendix37B of the Hand Book of Procedures , Volume I.

2. The following categories of exports specified in paragraph 3.17.2 and 3.14.3 of the Foreign TradePolicy shall not be counted for calculation of export performance or for computation of entitlement underparagraph 3.14.2 of the Foreign Trade Policy:

i. EOUs / EHTPs / BTPs who are availing direct tax benefits / exemption;ii. Export of imported goods covered under Para 2.35 of FTP;iii. Exports through transshipment, meaning thereby that exports originating in third

country but transshipped through India;iv. Deemed Exports;v. Exports made by SEZ units or SEZ products exported through DTA units;vi. Items, which are restricted or prohibited for export under Schedule-2 of Export

Policy in ITC (HS);vii. Supplies made to SEZ units;viii. Service Exports;ix.. Diamonds and other precious, semi precious stones;x. Gold, silver, platinum and other precious metals in any form, including plain and

studded Jewellery;xi. Ores and Concentrates, of all types and in all forms;xii. Cereals, of all types;xiii. Sugar, of all types and in all forms;xiv. Crude / Petroleum Oil & Crude / Petroleum based Products covered under ITC HS

codes 2709 to 2715,of all types and in all forms; andxv. Export of Milk and Milk Products covered under ITC HS Codes 0401 to 0406,

19011001, 19011010,2105 & 3501.xvi Export of Meat and Meat Products;xvii Export of Cotton;xviii Export of Cotton Yarn;xix Export which are subject to Minimum Export Price or Export Duty.

3. For the purpose of calculation of export performance or for computation of entitlement underparagraph 3.14.4 or paragraph 3.14.5 of the Foreign Trade Policy, the incremental growth shall be in respectof each exporter [Importer Exporter Code (IEC) holder] without any scope of combining the export for groupcompany or for transferring export performance from any other IEC holder and the incremental growth shall


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be in terms of freely convertible currency to the designated markets. The following categories of exports shallnot be counted for calculation of export performance or for computation of entitlements :(i) Export of imported goods or exports made through trans - shipment;(ii) Export from SEZ/ EOU /EHTP /STPI /BTP/FTWZ;(iii) Deemed Exports;(iv) Service Exports;(v) Third Party exports;(vi) Diamond, Gold, Silver, Platinum, other precious metal in any form including plain and studded jewellery andother precious and semi - precious stones;(vii) Ores and concentrates of all types and in all formations.(viii) Cereals of all types;(ix) Sugar of all types and all forms;(x) Crude/petroleum oil and crude/primary and base products of all types and all formulations;(xi) Export of milk and milk products;(xii) Export performance made by one exporter on behalf of other exporter;(xiii) Supplies made to SEZ units;(xiv) Items, export of which requires an export authorisation (except SCOMET);(xv) Export of Meat and Meat Products;(xvi) Exports to Singapore, UAE and Hong Kong,(xvii) SEZ/EOU/EHTP/BTP/FTWZ products exported through DTA units(xviii) Cotton (for the paragraph 3.14.5 of the Foreign Trade Policy); (xix) Omitted; (xx) Export which are subject to Minimum Export Price or Export Duty (for the paragraph 3.14.5of the Foreign Trade Policy).Explanation,- In this notification,-

(i) “Capital goods” has the same meaning as assigned to it in paragraph 9.12 of the ForeignTrade Policy;

(ii) “Foreign Trade Policy” means the Foreign Trade Policy 2009-2014, published by the Gov-ernment 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) “Goods” means any inputs, or goods including capital goods.

GENERAL EXEMPTION NO.98E

Exemption to goods when imported into India against an Agri. Infrastructure Incentive scripissued under Vishes Krishi and Gram Udyog Yojana:[Notifn. No. 94/09-Cus., dt.11.9.2009 as amended by 123/09, 90/10, 37/12, 40/12, 44/12, 50/12, 4/13, 20/13, 24/13, 38/13, 5/15]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts capital goods specified in paragraph 3.13.4 of the Foreign Trade Policy, when imported into Indiaagainst an Agri.Infrastructure Incentive scrip (hereinafter referred to as the said scrip) issued under VisheshKrishi and Gram Udyog Yojana (Special Agriculture and Village Industry Scheme) in accordance with theaforesaid paragraph, -

(a) from the whole of the duty of customs leviable thereon under the First Schedule to the CustomsTariff Act, 1975 (51 of 1975); and

GENERAL EXEMPTION NO. 98E

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(b) from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act,1975(51 of 1975),subject to the following conditions, namely,-

i. that the said scrip has been issued to an exporter of products specified in paragraph 3.13.4of the Foreign Trade Policy by the Licensing Authority or Regional Authority and it isproduced before the proper officer of customs at the time of clearance for debit of the dutiesleviable on the goods and the proper officer of customs taking into account the debits al-ready made under this exemption and the notification No. 31 of 2012-Central Excise,dated the 9th July, 2012, shall debit the duties leviable on the goods, but for this exemption

ii. that the scrip shall be non-transferable and the capital goods allowed for import shall be inaccordance with the provisions of paragraph 3.13.4 of the Foreign Trade Policy:

Provided that the scrip shall be freely transferable amongst status holders for import ofCold Chain equipments, and

Provided further that the scrip shall be freely transferable for import of cold chain equip-ment by units (the terms units shall not include developers) in a Park recognized by theMinistry of Food Processing Industries.

Provided also that the said scrip shall be transferable by the status holder, to whom it wasissued, to its supporting manufacturer, who is neither a status holder nor has a unit (the termunit shall not include developer) in a Park recognised by the Ministry of Food ProcessingIndustries, if such transfer is endorsed by the Regional Authority during the period of valid-ity of the said scrip and upon such endorsement, the validity of the said scrip remainsunchanged.

iii. that the capital goods imported under para 3.13.4 of the Foreign Trade Policy shall besubject to actual user condition and the importer at the time of clearance of the said capitalgoods, shall furnish an undertaking to this effect to the Deputy Commissioner of Customsor Assistant Commissioner of Customs, as the case may be, that in case of non complianceof the said condition, he shall pay on demand an amount equal to the duty leviable, but forthe exemption contained herein together with interest at the rate of fifteen percent per an-num from the date of clearance of the said materials:

iv. that the imports and exports are undertaken through seaports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkataport) Kakinada, Kandla, Kattupalli (Tamil Nadu),Kolkata, Krishnapatnam, Ennore (TamilNadu) and Karaikal (Union territory of Puducherry) Magdalla, Mangalore, Marmagoa,Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav,Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports atAhmedabad, Bangalore, Bhubaneswar, Calicut, Chennai, Cochin, Coimbatore, Dabolim (Goa),Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi(Amritsar), Srinagar, Trivandrum , Varanasi and Visakhapatnam or through any of theInland 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,

GENERAL EXEMPTION NO. 98E

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Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati,Marripalem Village in Taluk of Edlapadu, District Guntur and Tondiarpet (TNPM), Chennaiand Irungattukottai, SIPCOT IndustrialPark, Kattrambakkam Village, Sriperumbudur Taluk,Kanchipuram District, Tamil Nadu and Melapakkam Village (Arakkonam Taluk, VelloreDistrict) 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)Talegoan (District Pune), Dhannad Rau (District Indore),Kheda (Pithampur, District Dhar) and Patli (Gurgaon) or through the Land Customs Stationat 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 theSpecial Economic Zones Act, 2005 (28 of 2005):

Provided that the Commissioner of Customs may with in the jurisdiction , by specialorder, or by a Public Notice, andsubject to such conditions as may be specified by him,permits import and export from any other seaport/airport inland container depot or throughany land customs station;

Provided further that the exports may also be undertaken through the Foreign PostOffice at New Delhi

v. that the importer shall be entitled to avail of the drawback or CENVAT credit of additionalduty leviable under Section 3 of the Customs Tariff Act, 1975 (51 of 1975) against theamount debited in the said scrip.

2. The following categories of exports specified in paragraph 3.17.2 of the Foreign Trade Policy shallnot be counted for calculation of export performance or for computation of entitlement under the scheme:

i. EOUs / EHTPs / BTPs who are availing direct tax benefits / exemption;ii. Export of imported goods covered under Para 2.35 of FTP;iii. Exports through transshipment, meaning thereby that exports originating in third

country but transshippedthrough India;iv. Deemed Exports;v. Exports made by SEZ units or SEZ products exported through DTA units; andvi. Items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS).

Explanation. - For the purposes of this notification,-

(i) “Capital goods” has the same meaning as assigned to it in paragraph 9.12 of the Foreign TradePolicy;

(ii) “Foreign Trade Policy” means the Foreign Trade Policy 2009-2014, published by the Governmentof India in the Ministry of Commerce and Industry vide notification No.1 /2009-2014, dated the 27th Au-gust, 2009 as amended from time to time;

(iii) “Licensing Authority or Regional Authority” means the Director General of Foreign Trade ap-pointed under section 6 of the Foreign Trade (Development and Regulation ) Act,1992 (22 of 1992) or anofficer authorised by him to grant a licence under the said Act.

GENERAL EXEMPTION NO. 98F

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GENERAL EXEMPTION NO.98F

Exemption to goods when imported into India against a duty credit scrip issued under VisheshKrishi and Gram Udyog Yojana:[Notifn. No. 95/09-Cus., dt.11.9.2009 as amended by 123/09, 93/10, 40/11, 37/12, 40/12, 44/12, 50/12, 4/13, 20/13, 29/13, 38/13, 5/15]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts inputs or goods including capital goods, when imported into India against a duty credit scrip (here-inafter referred to as the said scrip) issued under Vishesh Krishi and Gram Udyog Yojana (Special Agricul-ture and Village Industry Scheme) in accordance with paragraph 3.13.2 of the Foreign Trade Policy: -

(a) from the whole of the duty of customs leviable thereon under the First Schedule to the CustomsTariff Act, 1975 (51 of 1975);and

(b) from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act,1975,


i. that the said scrip has been issued to an exporter of products specified in paragraph 3.13.2of the Foreign Trade Policy by the Licensing Authority or Regional Authority and it isproduced before the proper officer of customs at the time of clearance for debit of the dutiesleviable on the goods and the proper officer of customs taking into account the debits al-ready made under this exemption and the notification No. 32 of 2012-Central Excise,dated the 9th July, 2012 and 8 of 2013- Service Tax, dt. the 18 th April, 2013shall debit theduties leviable on the goods, but for this exemption

ii. that the items allowed for import shall be in accordance with paragraph 3.17.5 of the For-eign Trade Policy;


iv. that the imports and exports are undertaken through seaports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar, Haldia (Haldia Dock complex of Kolkataport) Kakinada, Kandla, Kattupalli (Tamil Nadu), Kolkata, Krishnapatnam and Ennore(Tamil Nadu), and Karaikal (Union territory of Puducherry)Magdalla, Mangalore,Marmagoa, Muldwarka, Mumbai, Mundhra, Nagapattinam, Nhava Sheva, Okha, Paradeep,Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of theairports at Ahmedabad, Bangalore, Bhubaneswar, Calicut, Chennai, Cochin, Coimbatore,Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai,Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum , Varanasi and Visakhapatnam or throughany 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,


1394

Gauhati, Marripalem Village in Taluk of Edlapadu, District Guntur and Tondiarpet (TNPM),Chennai and Irungattukottai, SIPCOT Industrial Park, Kattrambakkam Village, SriperumbudurTaluk, Kanchipuram District, Tamil Nadu and Melapakkam Village (Arakkonam Taluk, VelloreDistrict) 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) Talegoan (District Pune), Dhannad Rau (District Indore),Kheda (Pithampur, District Dhar), Patli (Gurgaon), Irugur Village (Tamil Nadu), Thudiyalur(Tamil Nadu), Chettipalayam (Tamil Nadu) and Veerapandi (Tamil Nadu) and MarripalemVillage in Taluk of Edlapadu, District Guntur, 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, Singhabadand Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Eco-nomic Zones Act, 2005 (28 of 2005):

Provided that the Commissioner of Customs may with in the jurisdiction , by specialorder, or by a Public Notice, and subject to such conditions as may be specified by him,permits import and export from any other seaport/airport/inland container depot or throughany land customs station;

Provided further that the exports may also be undertaken through the Foreign PostOffice at New Delhi.

v. that the importer shall be entitled to avail of the drawback or CENVAT credit of additionalduty leviable under section 3 of the Customs Tariff Act, 1975 (51 of 1975) against theamount debited in the said scrip.

2. The following categories of exports specified in paragraph 3.17.2 of the Foreign Trade Policy shallnot be counted for calculation of export performance or for computation of entitlement under the scheme:i. EOUs / EHTPs / BTPs who are availing direct tax benefits / exemption;ii. Export of imported goods covered under Para 2.35 of FTP;iii. Exports through transshipment, meaning thereby that exports originating in third

country but transshipped through India;iv. Deemed Exports;v. Exports made by SEZ units or SEZ products exported through DTA units; and

Items, which are restricted or prohibited for export under Schedule-2 of Export Policy inITC (HS).

Explanation .- For the purposes of this notification ,-(i) “Capital goods” has the same meaning as assigned to it in paragraph 9.12 of the Foreign TradePolicy;

(ii) “Foreign Trade Policy” means the Foreign Trade Policy 2009-2014, published by the Governmentof India in the Ministry of Commerce and Industry vide notification No.1 /2009-2014, dated the 27th Au-gust, 2009 as amended from time to time;


1395

(iii) “Licensing Authority or Regional Authority” means the Director General of Foreign Trade appointedunder section 6 of the Foreign Trade (Development and Regulation ) Act,1992 (22 of 1992) or an officerauthorised by him to grant a licence under the said Act.

GENERAL EXEMPTION NO.98G

Exemption to goods imported into India against an Advance Authorisation issued in terms ofparagraph 4.1.3 of the Foreign Trade Policy:[Notifn. No. 96/09-Cus., dt.11.9.2009 as amended by 123/09, 93/10, 40/11, 37/12, 40/12,50/12, 4/13, 20/13, 5/15]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts materials imported into India against an Advance Authorisation issued in terms of paragraph 4.1.3of the Foreign Trade Policy (hereinafter referred to as the said authorisation) from the whole of the duty ofcustoms leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of1975) 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 said authorisation is produced before the proper officer of customs at the time ofclearance for debit;

ii. that the said authorisation bears,-

(a) the name and address of the importer and the supporting manufacturer in caseswhere the authorisation has been issued to a merchant exporter; and

(b) the shipping bill number(s) and date(s) and description,quantity and value of ex-ports of the resultant product in cases where import takes place after fulfilment of exportobligation; or

(c) the description and other specifications where applicable of the imported materialsand the description,quantity and value of exports of the resultant product in cases whereimport takes place before fulfilment of export obligation;

iii. that the materials imported correspond to the description and other specifications whereapplicable mentioned in the authorisation and the value and quantity thereof are within thelimits specified in the said authorisation;

iv. that in respect of imports made before the discharge of export obligation, the importer at thetime of clearance of the imported materials executes a bond with such surety or security andin such form and for such sum as may be specified by the Deputy Commissioner of Cus-toms or Assistant Commissioner of Customs, as the case may be, binding himself to pay ondemand an amount equal to the duty leviable, but for the exemption contained herein, onthe imported materials in respect of which the conditions specified in this notification arenot complied with, together with interest at the rate of fifteen percent per annum from thedate of clearance of the said materials;

GENERAL EXEMPTION NO. 98G

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v. that in respect of imports made after the discharge of export obligation, if facility of CENVATCredit under CENVAT Credit Rules, 2004 has been availed, then the importer shall, at thetime of clearance of the imported materials furnish a bond to the Deputy Commissioner ofCustoms or Assistant Commissioner of Customs, as the case may be, binding himself, to usethe imported materials in his factory or in the factory of his supporting manufacturer for themanufacture of dutiable goods and to submit a certificate, from the jurisdictional CentralExcise officer or from a specified chartered accountant within six months from the date ofclearance of the said materials, that the imported materials have been so used:

Provided further that if the importer pays additional duty of customs leviable on the importedmaterials but for the exemption contained herein, then the imported materials may be clearedwithout furnishing a bond specified in this condition and the additional duty of customs sopaid shall be eligible for availing CENVAT Credit under the CENVAT Credit Rules, 2004;

vi. that in respect of imports made after the discharge of export obligation in full, and if facilityunder 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 CENVATCredit Rules, 2004 has not been availed and the importer furnishes proof to this effect to thesatisfaction of the Deputy Commissioner of Customs or the Assistant Commissioner ofCustoms as the case may be, then the imported materials may be cleared without furnishinga bond specified in condition (v);

vii. 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, Kattupalli (Tamil Nadu), Kolkata, Krishnapatnam and Ennore (Tamil Nadu) andKaraikal (Union territory of Puducherry) 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, Banga-lore, Bhubaneswar, Calicut, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad,Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar,Trivandrum , Varanasi and Visakhapatnam or through any of the Inland Container Depots atAgra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda,Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (DeraBassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Durgapur (ExportPromotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Marripalem Village in Talukof Edlapadu, District Guntur and Tondiarpet (TNPM), Chennai and Irungattukottai, SIPCOTIndustrialPark, Kattrambakkam Village, Sriperumbudur Taluk, Kanchipuram District, TamilNadu, and Melapakkam Village (Arakkonam Taluk, Vellore District) 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) Talegoan (District Pune), Dhannad Rau (District Indore), Kheda (Pithampur,District Dhar),Patli (Gurgaon), Irugur Village (Tamil Nadu), Thudiyalur (Tamil Nadu),Chettipalayam (Tamil Nadu) and Veerapandi (Tamil Nadu) (Tamil Nadu) and MarripalemVillage in Taluk of Edlapadu, District Guntur, or through the Land Customs Station at Agartala,Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani,


1397

Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabadand Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Eco-nomic Zones Act, 2005 (28 of 2005):

Provided that the Commissioner of Customs may with in the jurisdiction , by special order, orby a Public Notice, and subject to such conditions as may be specified by him, permits importand export from any other seaport/airport/inland container depot or through any land cus-toms station;

viii. that the export obligation as specified in the said authorization (both in value and quantityterms) is discharged within the period specified in the said authorization or within suchextended period as may be granted by the Regional Authority by exporting resultant prod-ucts, manufactured in India which are specified in the said authorization and in respect ofwhich facility under rule 18(rebate of duty paid on materials used in the manufacture ofresultant product) or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 has not beenavailed:

Provided that an Advance Intermediate authorization holder shall discharge export obligationby supplying the resultant products to exporter in terms of paragraph 4.1.3 (ii) of the ForeignTrade Policy;

ix. that the importer produces evidence of discharge of export obligation to the satisfaction ofthe Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the casemay be, within a period of sixty days of the expiry of period allowed for fulfilment of exportobligation, or within such extended period as the said Deputy Commissioner of Customs orAssistant Commissioner of Customs, as the case may be, may allow;

x. that the said authorisation shall not be transferred and the said materials shall not be trans-ferred or sold;

Provided that the said materials may be transferred to a job worker for processing subject tocomplying with the conditions specified in the relevant Central Excise notifications permit-ting transfer of materials for job work;

Provided further that, no such transfer for purposes of job work shall be effected to the unitslocated in areas eligible for area based exemptions from the levy of excise duty in terms ofnotification Nos. 49/03-CE and 50/03-CE both dated 10th June,2003, 32/99-CE dated 8thJuly,1999, 33/99-CE dated 8th July,1999, 8/04-CE dated 21stJanuary,2004, 20/07-CE dated25th April,2007,56/02-CE dated 14th November, 2002,57/02-CE dated 14th November,2002,71/03-CE dated 9th September,2003, 56/03-CE dated 25th June,2003 and 39/01-CE dated31st July,2001;

xi. that in relation to the said authorisation issued to a merchant exporter,any bond required to beexecuted by the importer in terms of this notification shall be executed jointly by the mer-chant exporter and the supporting manufacturer binding themselves jointly and severally tocomply with the conditions specified in this notification.


1398

2. Where the materials are found defective or unfit for use, the said materials may be re-exported backto the foreign supplier within six months from the date of clearence of the said material or such extendedperiod 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 DeputyCommissioner of Customs or Assistant Commissioner of Customs, as the case may be, as the materialswhich were imported.

3. Notwithstanding anything contained in this notification, the actual user condition specified in condi-tion numbers (viii) and (x) shall not be applicable in respect of authorisation issued for import of raw sugar forimports made from the 17th February, 2009 till 30th September, 2009 and the export obligation may also befulfilled by procuring white sugar from any other factory with effect from the 17th February, 2009.

Explanation, – For the purposes of this notification,-(i) “Dutiable goods” means excisable goods which are not exempt from central excise duty and whichare not chargeable to ‘nil’ rate of central excise duty;

(ii) “Foreign Trade Policy” means the Foreign Trade Policy 2009-2014, published by the Government ofIndia in the Ministry of Commerce and Industry vide notification No.1 /2009-2014, dated the 27th August2009 as amended from time to time;

(iii) “Licensing Authority or Regional Authority” means the Director General of Foreign Trade appointedunder section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officerauthorized 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 TradePolicy;(v) “Materials” means-

(a) raw materials, components, intermediates, consumables, catalysts and parts which are re-quired for manufacture of resultant product;

(b) mandatory spares within a value limit of ten per cent. of the value of the licence which arerequired 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;

(vi) “Specified Chartered Accountant” means a statutory auditor or a Chartered Accountant who certi-fies the importer’s financial records under the Companies Act, 1956 ( 1 of 1956) or the Sales Tax/ ValueAdded Tax Act of the State Government or the Income Tax Act, 1961 ( 43 of 1961).

GENERAL EXEMPTION NO.98H

Exemption to goods when imported into India issued under a Duty Entitlement Pass Book Scripby the Licensing Authority:[Notifn. No. 97/09-Cus., dt.11.9.2009 as amended by 123/09, 93/10, 124/10, 51/11, 40/11, 37/12,40/12, 50/12, 4/13, 20/13, 5/15]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of

GENERAL EXEMPTION NO. 98H

1399

1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts the goods of description specified in column (2) of the Table below, when imported into India,-

(a) from so much of duty of customs leviable thereon under the First Schedule to the Customs Tariff Act,1975 (51 of 1975) as is in excess of the amount calculated at the rate specified in the corresponding entry incolumn (3) of the said Table;

(b) from so much of additional duty leviable thereon under section 3 of the said Customs Tariff Act, as isin excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the saidTable;

subject to the following conditions, namely :-(i) that the importer has been issued a Duty Entitlement Pass Book Scrip by the Licensing

Authority in terms of paragraph 4.3 of the Foreign Trade Policy or Rule 24 or Rule 30 ofthe Special Economic Zones Rules, 2006;

(ii) that the importer has been permitted credit entries in the said Duty Entitlement Pass BookScrip by the Licensing Authority at the rates notified by the Government of India in theMinistry of Commerce and Industry for the products exported;

(iii) that the said Duty Entitlement Pass Book Scrip is produced before the proper officer ofCustoms for debit of the duties leviable on the goods, but for exemption contained herein :

(iv) the said Duty Entitlement Pass Book Scrip shall be valid for twenty four months from the date ofissue or such extended period as may be granted by the Licensing Authority for import and export only at theport of registration which shall be one of the sea ports at Bedi (including Rozi-Jamnagar), Chennai, Cochin,Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla, Kattupalli (Tamil Nadu),Kolkata, Krishnapatnam and Ennore (Tamil Nadu), and Karaikal (Union territory of Puducherry) 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, Ban-galore, Bhubaneswar, Calicut, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur,Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum , Varanasi andVisakhapatnam or through any of the Inland Container Depots at Agra, Ahmedabad, Anaparthy (AndhraPradesh), 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, Marripalem Village inTaluk of Edlapadu, District Guntur and Tondiarpet (TNPM), Chennai and Irungattukottai, SIPCOTIndustrialPark, Kattrambakkam Village, Sriperumbudur Taluk, Kanchipuram District, Tamil Nadu andMelapakkam Village (Arakkonam Taluk, Vellore District) Hyderabad, Jaipur, Jallandhar, Jamshedpur, Jodh-pur, Kanpur, Karur, Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Malanpur, Mandideep (Dis-trict 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) Talegoan (District Pune), Dhannad Rau (District Indore), Kheda (Pithampur, District Dhar)Patli (Gurgaon), Irugur Village (Tamil Nadu), Thudiyalur (Tamil Nadu), Chettipalayam (Tamil Nadu) andVeerapandi (Tamil Nadu) (Tamil Nadu) and Marripalem Village in Taluk of Edlapadu, District Guntur, orthrough the Land Customs Station at Agartala, Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki,Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul,

GENERAL EXEMPTION NO. 98H

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Singhabad and Sutarkhandi or a Special Economic Zone notified under section 4 of the Special EconomicZones Act, 2005 (28 of 2005):

Provided that where the expiry of the Duty Entitlement Pass Book falls before thelast day of the month, such Duty Entitlement Pass Book shall be deemed to be valid till thelast day of the said month :

Provided further that the Commissioner of Customs may, by special order or apublic notice and subject to such conditions as may be specified by him, permit import andexport through any other sea-port, airport, inland container depot or through a land customsstation within his jurisdiction.

(v) that where the importer does not claim exemption from the additional duty of customsleviable under section 3 of the Customs Tariff Act, 1975 (51 of 1975), he shall be deemednot to have availed the exemption from the said duty for the purpose of calculation of thesaid additional duty of customs;

(vi) that the importer shall be entitled to avail the drawback or CENVAT credit of additionalduty leviable under section 3 of the said Customs Tariff Act against the amount debited inthe said Duty Entitlement Pass Book Scrip;

(vii) that where benefit of exemption from duty is claimed by a person, who is not a DutyEntitlement Pass Book Scrip holder, such benefit shall be permissible only against specificamount of credit, not being a provisional credit, transferred by a Duty Entitlement PassBook Scrip holder to such person.

2. This notification shall be valid in respect of the Duty Entitlement Pass Book Script issued by theLicensing Authority against exports having Let Export Order up to an inclusive ot the 30th day of September,2011.

TABLES. No. Description of goods Standard rate Additional Duty rate

(1) (2) (3) (4)

1. Goods other than Nil Niledible oils

2. Edible Oils 50% of applied 50% of applied rate rate of duty of additional duty.

Explanation, - For the purposes of this notification,-

(i) “Foreign Trade Policy” means Foreign Trade Policy 2009-2014 published in the Gazette of India,Part II, Section 3, Sub-section (ii) vide notification of the Government of India in the Ministry of Commerceand Industry, No.1/2009-2014, dated the 27th August, 2009 as amended from time to time;

(ii) “Licensing Authority” means the Director General of Foreign Trade appointed under section 6 of theForeign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorized by him to granta licence under the said Act;

(iii) “applied rate of duty” means the standard rate of duty specified in the First Schedule to the said

GENERAL EXEMPTION NO. 98I

1401

Customs Tariff Act with respect to the goods specified in column (2) of the said Table, read with any othernotification (for the time being in force) issued in respect of such goods under sub-section (1) of section 25 ofthe said Customs Act;

(iv) “applied rate of additional duty” means the additional duty leviable under section 3 of the said Cus-toms Tariff Act with respect to the goods specified in column (2) of said Table, read with any other notifica-tion (for the time being in force) issued in respect of such goods under sub-section (1) of section 25 of the saidCustoms Act.

(v) "Let Export Order" means an order which permits clearance and loading of the goods for exportationby the proper officers in accordance with section 51 of the said Custom Act.

GENERAL EXEMPTION NO.98I

Exemption to goods imported into India against a Duty Free Import Authorisation issued in termsof paragraph 4.2.1 and 4.2.2 of the Foreign Trade Policy:[Notifn. No. 98/09-Cus., dt.11.9.2009 as amended by 123/09, 93/10, 40/11, 37/12, 40/12,50/12, 4/13, 20/13, 24/13, 45/13, 5/15]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts materials imported into India against a Duty Free Import Authorisation issued in terms of paragraph4.2.1 and 4.2.2 of the Foreign Trade Policy (hereinafter referred to as the said authorisation) from the wholeof 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 leviablethereon, respectively, under sections 3, 8B and 9A of the said Customs Tariff Act, except to the extentspecified in paragraph 2 or 2A of this notification, as the case may be, subject to the following conditionsnamely :-

(i) that the description, value and quantity of materials imported are covered by the saidauthorisation and the said authorisation is produced before the proper officer of customs atthe time of clearance for debit:

Provided that in respect of resultant product specified in paragraph 4.32.3 of theHand Book of Procedures (Vol.I) of the Foreign Trade Policy, the materials permitted in thesaid authorisation or a duty free import authorisation for intermediate supply, as the casemay be, shall be of the same quality, technical characteristics and specifications as thematerials used in the said resultant product:

Provided further that in respect of the said resultant product the exporter shall givedeclaration with regard to the quality, technical characteristic and specifications of materialsused in the shipping bill;

(ii) that where import takes place after fulfilment of export obligation, the shipping billnumber(s) and date(s) and quantity and Free on Board value of the resultant product areendorsed on the said authorisation:

Provided that where import takes place before fulfilment of export obliga-tion, the quantity and Free on Board value of the resultant product to be exported are en-dorsed on the said authorisation;


1402

(iii) that in respect of imports made before the discharge of export obligation in full, theimporter at the time of clearance of the imported materials executes a bond with such suretyor security and in such form and for such sum as may be specified by the Deputy Commis-sioner of Customs or Assistant Commissioner of Customs, as the case may be, bindinghimself to pay on demand an amount equal to the duty leviable, but for the exemptioncontained herein, on the imported materials in respect of which the conditions specified inthis 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 facilityunder 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 underCENVAT Credit Rules, 2004 has been availed, then the importer shall, at the time of clear-ance of the imported materials furnish a bond to the Deputy Commissioner of Customs orAssistant Commissioner of Customs, as the case may be, binding himself, to use the im-ported materials in his factory or in the factory of his supporting manufacturer for the manu-facture of dutiable goods and to submit a certificate, from the jurisdictional Central Exciseofficer within six months from the date of clearance of the said materials, that the importedmaterials have been so used:

Provided that, in case,

(a) materials are imported against an authorisation transferred by the RegionalAuthority, or

(b) the imported materials are transferred with the permission of RegionalAuthority,

then the importer shall pay an amount equal to the additional duty of customs levi-able 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 ofthe said materials:

Provided further that no such amount shall be payable in respect of Authorizationsissued from 1.5.2006 to 31.3.2007:

Provided also that if the importer pays additional duty of customs leviable on theimported materials but for the exemption contained herein, then the imported materialsmay be cleared without furnishing a bond specified in this condition and the additional dutyof customs so paid shall be eligible for availing CENVAT Credit under the CENVAT CreditRules, 2004;

(v) that in respect of imports made after the discharge of export obligation in full, andif facility under rule 18 (rebate of duty paid on materials used in the manufacture of result-ant product) or sub-rule 2 of rule 19 of the Central Excise Rules, 2002 or CENVAT creditunder CENVAT Credit Rules, 2004 has not been availed and the importer furnishes proof tothis effect to the satisfaction of the Deputy Commissioner of Customs or the Assistant


1403

Commissioner of Customs as the case may be, then the imported materials may be clearedwithout 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, Kattupalli(Tamil Nadu), Kolkata, Krishnapatnam and Ennore (Tamil Nadu) and Karaikal (Union territory of Puducherry),Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha,Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports atAhmedabad, Bangalore, Bhubaneswar, Calicut, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi,Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar,Trivandrum , Varanasi and Visakhapatnam 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,Marripalem Village in Taluk of Edlapadu, District Guntur and Tondiarpet (TNPM), Chennai andIrungattukottai, SIPCOT IndustrialPark, Kattrambakkam Village, Sriperumbudur Taluk, KanchipuramDistrict, Tamil Nadu and Melapakkam Village (Arakkonam Taluk, Vellore District) 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) Talegoan (District Pune), Dhannad Rau (District Indore), Kheda (Pithampur,District Dhar), Patli (Gurgaon), Irugur Village (Tamil Nadu), Thudiyalur (Tamil Nadu), Chettipalayam (TamilNadu) and Veerapandi (Tamil Nadu) (Tamil Nadu) and Marripalem Village in Taluk of Edlapadu, DistrictGuntur, 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 SpecialEconomic Zones Act, 2005 (28 of 2005):

Provided that the Commissioner of Customs may with in the jurisdiction , by spe-cial 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 orthrough any land customs station;

(vii) that the export obligation as specified in the said authorization (both in value andquantity terms) is discharged within the period specified in the said authorization or withinsuch extended period as may be granted by the Regional Authority by exporting resultantproducts, manufactured in India which are specified in the said authorization:

Provided that an Advance Intermediate authorization holder shall discharge exportobligation 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 satis-faction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, asthe case may be, within a period of sixty days of the expiry of period allowed for fulfilmentof export obligation, or within such extended period as the said Deputy Commissioner ofCustoms or Assistant Commissioner of Customs, as the case may be, may allow;


1404

(ix) that exempt materials shall not be disposed of or utilised in any manner, except forutilisation in discharge of export obligation, before the export obligation under the saidauthorisation has been discharged in full:

Provided further that where the Bond filed under condition (iii) against the saidauthorisation has not been redeemed by the Deputy Commissioner of Customs or AssistantCommissioner of Customs, as the case may be, the unutilised material may be transferred toany 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 and57/02-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 actualuser 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 saidauthorisation and the bond required to be executed by the importer in terms of conditionnumbers (iii) or (iv) as the case may be shall be executed jointly by the merchant exporterand the supporting manufacturer binding themselves jointly and severally to comply withthe conditions specified in this notification; and

(b) exempt materials are utilised in the factory of such supporting manufacturer fordischarge of export obligation and the same shall not be transferred or sold or used for anyother purpose by the said merchant exporter until the export obligation specified in condition(vii) has been discharged in full.

2. The exemption from safeguard duty and anti-dumping duty shall not be available in case materials areimported against an authorisation made transferable by theRegionalAuthority.2A. With effect from 17th September 2013, the exemption from safeguard duty and anti-dumping duty shallnot be available in case materials are imported against an authorisation that has been made transferable on orafter the 18th April, 2013 by the Regional Authority.

2AB. In case the imported materials are transferred with the permission of Regional Authority, theimporter shall pay an amount equal to the safeguard duty and anti-dumping duty leviable on the material soimported and transferred, but for the exemption contained in paragraph 1 above, together with interest at therate of fifteen per cent. per annum from the date of clearance on import of the said materials.zzzz2AC. With effect from 17th September 2013, in case the imported materials are transferred with the

permissionof Regional Authority, and where such permission is granted on or after the 18th April, 2013, the importershall pay an amount equal to the safeguard duty and anti-dumping duty leviable on the material so importedand transferred, but for the exemption contained in paragraph 1 above, together with interest at the rate offifteen per cent per annum from the date of clearance on import of the said materials.

2B. After discharge of export obligation as specified in condition (vii) of paragraph 1, the RegionalAuthority shall permit transfer of the said authorisation and/or the goods imported under it subject to such


1405

conditions as may be specified.3. Where the materials are found defective or unfit for use, the said materials may be re-exported backto the foreign supplier within six months from the date of clearence of the said material or such extendedperiod 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 DeputyCommissioner of Customs or Assistant Commissioner of Customs, as the case may be, as the materialswhich 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 Gov-

ernment 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 Tradeappointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22of 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 ForeignTrade Policy;

(v) “Materials” means

(a) raw materials, components, intermediates, consumables, catalysts and parts which are re-quired for manufacture of resultant product;



GENERAL EXEMPTION NO.98 J

Exemption to goods imported into India, against an Advance Authorisation for Annual Require-ment with actual user condition in terms of Paragraph 4.1.10 of the Foreign Trade Policy:[Notifn. No. 99/09-Cus., dt.11.9.2009 as amended by 123/09, 90/10, 93/10, 40/11, 37/12, 40/12, 50/12, 4/13, 20/13, 5/15]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts materials imported into India, against an Advance Authorisation for Annual Requirement (herein-after referred to as the said Authorization) with actual user condition in terms of Paragraph 4.1.10 of theForeign Trade Policy from the whole of the duty of customs leviable thereon which is specified in the FirstSchedule to the Customs Tariff Act, 1975 (51 of 1975) and from the whole of the additional duty, safeguardduty and anti dumping duty leviable thereon, respectively under section 3, 8B and 9A of the said CustomsTariff Act, subject to the following conditions namely,-

i. that the said licence is produced before the proper officer of customs at the time of clearance fordebit the quantity and value of imports;

GENERAL EXEMPTION NO. 98J

1406

ii. that the said authorisation bears,-

(a) the name and address of the supporting manufacturer also in such cases wherethe authorisation has been issued to a merchant exporter;

(b) the shipping bill number(s) and date(s) and description,quantity and value of exports of theresultant product in cases where import takes place after fulfilment of export obligation; or

(c) the description, Cost Insurence Freight value and other specifications of the imported mate-rials and the description,quantity and Free on Board value of exports of the resultant prod-uct covered under an export product group specified in the Hand Book of Procedures Vol-ume 1, in such cases where import takes place before fulfilment of export obligation;

Provided further that in respect of the inputs specified in paragraph 4.24A (i) of theHand Book of Procedures, Volume 1 of the Foreign Trade Policy, the material permitted inthe said authorization shall be of the same quality, technical characteristics and specifica-tions as the materials used in the export of the resultant product:

Provided also that the exporter shall give declaration with regard to the technicalcharacteristics, quality and specifications of materials used in the export of resultant prod-uct, in the shipping bill;

iii. that the authorizations issued on the basis of self declaration where Standard Input OutputNorms are not fixed, shall also be valid for import of inputs required for the manufacture ofexport products provided the authorization holder shall prove to the satisfaction of thejurisdictional Assistant Commissioner of Customs or Deputy Commissioner of Customs, asthe case may be, that an application in Aayat Niryat form along with documents specifiedtherein has been submitted to the Director General of Foreign Trade, in terms of para 4.7 ofthe Hand Book of Procedures , Volume 1 of the Foreign Trade Policy before making thefirst shipment;

iv. that in respect of imports made before the discharge of export obligation, the importer at thetime of clearance of the imported materials executes a bond with such surety or security andin such form and for such sum as may be specified by the Deputy Commissioner of Cus-toms or Assistant Commissioner of Customs, as the case may be, binding himself to pay ondemand an amount equal to the duty leviable, but for the exemption contained herein, onthe imported materials in respect of which the conditions specified in this notification arenot complied with, together with interest at the rate of fifteen percent per annum from thedate of clearance of the said materials;

v. that in respect of imports made after the discharge of export obligation, if facility of CENVATCredit under CENVAT Credit Rules, 2004 has been availed, then the importer shall, at thetime of clearance of the imported materials furnish a bond to the Deputy Commissioner ofCustoms or Assistant Commissioner of Customs, as the case may be, binding himself, touse the imported materials in his factory or in the factory of his supporting manufacturer forthe manufacture of dutiable goods and to submit a certificate, from the jurisdictional Cen-tral Excise officer or from a specified chartered accountant within six months from the date


1407

of clearance of the said materials, that the imported materials have been so used:

Provided further that if the importer pays additional duty of customs leviable on theimported materials but for the exemption contained herein, then the imported materialsmay be cleared without furnishing a bond specified in this condition and the additional dutyof customs so paid shall be eligible for availing CENVAT Credit under the CENVAT CreditRules, 2004;

vi. that in respect of imports made after the discharge of export obligation in full, and if facilityunder rule 18 or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 or CENVAT creditunder CENVAT Credit Rules, 2004 has not been availed and the importer furnishes proof tothis effect to the satisfaction of the Deputy Commissioner of Customs or the AssistantCommissioner of Customs as the case may be, then the imported materials may be clearedwithout furnishing a bond specified in condition (v);

vii. 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,Kattupalli (Tamil Nadu), Kolkata, Krishnapatnam and Ennore (Tamil Nadu) and Karaikal (Union territory ofPuducherry), Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva,Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of theairports at Ahmedabad, Bangalore, Bhubaneswar, Calicut, Chennai, Cochin, Coimbatore, Dabolim (Goa),Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar,Trivandrum , Varanasi and Visakhapatnam 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,Marripalem Village in Taluk of Edlapadu, District Guntur and Tondiarpet (TNPM), Chennai and Irungattukottai,SIPCOT IndustrialPark, Kattrambakkam Village, Sriperumbudur Taluk, Kanchipuram District, Tamil Naduand Melapakkam Village (Arakkonam Taluk, Vellore District) 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) Talegoan (District Pune), Dhannad Rau (District Indore), Kheda (Pithampur, DistrictDhar), Patli (Gurgaon), Irugur Village (Tamil Nadu), Thudiyalur (Tamil Nadu), Chettipalayam (Tamil Nadu)and Veerapandi (Tamil Nadu) (Tamil Nadu) and Marripalem Village in Taluk of Edlapadu, District Guntur orthrough 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 EconomicZones Act, 2005 (28 of 2005):

Provided that the Commissioner of Customs may with in the jurisdiction , by spe-cial 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/airport/inland container depot or throughany land customs station;

viii. that sourcing of the imported materials from Private Bonded Warehouses set up under para-graph 2.28 of the Foreign Trade Policy would be allowed;


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ix. that the export obligation as specified in the said authorization (both in value and quantityterms) is discharged within the period specified in the said authorization or within suchextended period as may be granted by the Regional Authority by exporting resultant prod-ucts, manufactured in India which are specified in the said authorization and in respect ofwhich facility under rule 18 or sub-rule (2) of rule 19 of the Central Excise Rules, 2002 hasnot been availed:

Provided that an Advance Intermediate authorization holder shall discharge exportobligation by supplying the resultant products to exporter in terms of paragraph 4.1.3 (ii) ofthe Foreign Trade Policy;

x. that the importer produces evidence of discharge of export obligation to the satisfaction ofthe Deputy Commissioner of Customs or Assistant Commissioner of Customs, within aperiod of sixty days of the expiry of period allowed for fulfilment of export obligation, orwithin such extended period as the said Deputy Commissioner of Customs or AssistantCommissioner of Customs, may allow;

xi. that the exempt materials shall not be disposed of or utilized in any manner except fordischarge of export obligation or for replenishment of such materials and the materials soreplenished shall not be sold or transferred to any other person:

Provided that the said materials may be transferred to a job worker for processingsubject to complying with the conditions prescribed in the relevent Central Excise notifica-tions permitting transfer of materials for job work:

Provided further that, no such transfer for purposes of job work shall be effected tothe units located in areas eligible for area based exemptions from the levy of excise duty interms of notification Nos. 49/03-CE and 50/03-CE both dated 10th June,2003, 32/99-CEdated 8th July,1999, 33/99-CE dated 8th July,1999, 8/04-CE dated 21stJanuary,.2004, 20/07-CE dated 25th April,.2007,56/02-CE dated 14th November, 2002,57/02-CE dated 14thNovember,.2002, 71/03-CE dated 9th September,.2003, 56/03-CE dated 25th June,.2003and 39/01-CE dated 31st July,.2001;

xii. that in relation to the said Authorization issued to a manufacturer exporter or merchantexporter, any bond required to be executed by the importer in terms of this notification shallbe executed jointly by the manufacturer exporter or merchant exporter as the case may beand the supporting manufacturer binding themselves jointly and severally to comply withthe conditions specified in this notification.

(xiii) that the exemption from safeguard duty and anti-dumping duty shall not be available inrespect of material imported-

(a) for supply of goods against Advance Authorisation or Advance Authorisation forannual requirement or Duty Free Import Authorisation;(b) for supply of goods to Export Oriented Unit (EOU) or SoftwareTechnology Park (STP) or Electronic Hardware Technology Park (EHTP) or Biotechnol-ogy Park (BTP);


1409

(c) for supply of capital goods to Export Promotion Capital Good (EPCG) Authorisationholders;(d) for supply of marine freight containers by 100% Export Orients Unit (Domesticfreight containers-manufacturers) where said containers are exported out of India within 6months or such further period as permitted by customs; and(e) for supply to projects funded by UN Agencies.”

(2). Notwithstanding anything contained in the notification, the actual user condition specified in condi-tion numbers (ix) and (xi) shall not be applicable in respect of authorisation issued for import of raw sugarfor imports made from 17th February, 2009 till 30th September, 2009 and the export obligation may also befulfilled by procuring white sugar from any other factory with effect from the 17th February, 2009.

Explanation.- For the purposes of this notification,-

(i) “Dutiable goods” means excisable goods which are not exempt from central excise duty and whichare not chargeable to ‘nil’ rate of central excise duty;

(ii) “Foreign Trade Policy” means the Foreign Trade Policy 2009-2014, published by the Government ofIndia in the Ministry of Commerce and Industry vide notification No.1 /2009-2014, dated the 27th August2009 as amended from time to time;

(iii) “Licensing Authority or Regional Authority” means the Director General of Foreign Trade appointedunder section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officerauthorized 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 TradePolicy;

(v) “Materials” means

(a) raw materials, components, intermediates, consumables, catalysts and parts which are re-quired for manu facture of resultant product;



(vi) “Specified Chartered Accountant” means a statutory auditor or a Chartered Accountant who certi-fies the importer’s financial records under the Companies Act, 1956 ( 1 of 1956) or the Sales Tax/ ValueAdded Tax Act of the State Government or the Income Tax Act, 1961 ( 43 of 1961).

GENERAL EXEMPTION NO.98K

Exemption to goods specified in the Table:[Notifn. No. 100/09-Cus., dt.11.9.2009 as amended by 123/09, 92/10,93/10, 40/11, 37/12, 42/12, 50/12, 3/13, 4/13, 20/13, 5/15]


GENERAL EXEMPTION NO. 98K

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1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts goods specified in the Table annexed hereto, from,-

(i) so much of the duty of customs leviable thereon which is specified in the First Schedule to theCustoms Tariff Act, 1975 (51 of 1975) as is in excess of the amount calculated at the rate of three percent ad-valorem, and

(ii) the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act,when specifically claimed by the importer.

2. The exemption under this notification shall be subject to the following conditions, namely :-

(1) that the goods imported are covered by a valid authorization issued under the Export PromotionCapital Goods (EPCG) Scheme to Common Service Providers(hereinafter referred to as CSP) designated bythe Director General Of Foreign Trade (hereinafter referred to as DGFT), Department ofCommerce(hereinafter referred to as DOC) or State Industrial Infrastructural Corporation in Towns OfExport Excellence (hereinafter referred to as TEE) in terms of Chapter 5 of the Foreign Trade Policy permit-ting import of goods at the rate of three percent duty and the said authorization is produced for debit by theproper officer of customs at the time of clearance :

Provided that for import of spare parts specified at Sr.No.4 of the said Table, the validity period of theauthorization shall be deemed to be the period permitted for fulfillment of the export obligation in full ;(1A) that the catalyst for one subsequent charge shall be allowed, under the authorization in which plant,machinery or equipment and catalyst for initial charge have been imported, except in cases where the Re-gional Authority issues a separate authorization for catalyst for one subsequent charge after the plant, ma-chinery or equipment and catalyst for initial charge have already been imported.(2) that the authorization issued under the scheme shall have the details of the users of the said capitalgoods and the quantum of the Export Obligation(hereinafter referred to as EO) which each user would fulfiland for authorizations issued on or after the 5th June, 2012, the details of the capital goods and the quantumof Export Obligation which Common Service provider shall fulfil shall be mentioned in the authorization.(3) that the authorization for annual requirement shall indicate export product to be exported under theauthorization. The authorization holder shall submit a Nexus Certificate from an independent CharteredEngineer (CEC) in the format specified in Appendix 32A of HBP (vol. I) notified under the Foreign TradePolicy, certifying nexus of imported capital goods with the export product, to the Customs authorities at thetime of clearance of imported capital goods. A copy of the CEC shall be submitted to the concerned Re-gional Authority alongwith copy of the bill of entry, within thirty days from the date of import of the capitalgoods.

(4) that the goods imported shall not be disposed of or transferred by sale or lease or any other mannertill export obligation is completed.(5) that the Common Service provider and each of the specific users shall execute a bond in such formand for such sum as may be specified by the Deputy Commissioner of Customs or Assistant Commissionerof Customs and a bank guarantee equivalent to their portion of duty foregone in terms of export obligationapportioned in the authorization binding themselves to fulfil export obligation on Free On Board (FOB)basis equivalent to eight times the duty saved on the goods imported as may be specified on the licence orauthorization, or for such higher sum as may be fixed or endorsed by the Licensing Authority or RegionalAuthority in terms of Para 5.10 of the Handbook of Procedures Vol I, issued under para 2.4 of the Foreign


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Trade Policy, within a period of eight years from the date of issue of licence or authorization, in the followingproportions, namely :-________________________________________________________________________________________________________________________S.No. Period from the date of Proportion of total export obligation

issue of Authorization________________________________________________________________________________________________________________________(1) (2) (3)________________________________________________________________________________________________________________________1. Block of 1st to 6th year 50%2. Block of 7th to 8th year 50%________________________________________________________________________________________________________________________Provided that in case authorizations are issued on or after the 5th June, 2012, the Common Service providershall execute the bond with bank guarantee and the bank guarantee shall be equivalent to hundred percent.of the duty foregone, to be given by the Common Service provider or by any one of the users or a combinationthereof, at the option of the Common Service provider:

Provided further that where the duty saved is not less than Rupees one hundred crores, or where the autho-rization is issued to units in the agri export zone as may be notified by the licensing authority or RegionalAuthority, the export obligation shall be fulfilled within a period of twelve years from the date of issue ofauthorization in the following proportions, namely :-________________________________________________________________________________________________________________________S.No. Period from the date of Proportion of total export obligation

issue of Authorization________________________________________________________________________________________________________________________(1) (2) (3)________________________________________________________________________________________________________________________1. Block of 1st to 10th year 50%2. Block of 11th to 12th year 50%________________________________________________________________________________________________________________________

Provided further that where a sick unit is notified by the Board for Industrial and FinancialReconstruction(BIFR) or where a rehabilitation scheme is announced by the concerned State Governmentin respect of sick unit for its revival, the export obligation may be fulfilled within time period allowed by theLicensing Authority or Regional Authority as per the rehabilitation package prepared by the operating agencyand approved by BIFR or rehabilitation department of State Government . In cases where the time period isnot specified in the rehabilitation package, the export obligation may be fulfilled within the time period allowedby the Licensing Authority or Regional Authority which shall not exceed twelve years.

Provided also that where the capital goods are imported by agro units and units in tiny and cottagesector, the export obligation shall be fixed equivalent to six times the duty saved on the goods imported asmay be specified on the authrization, or for such higher sum as may be fixed by the licensing authority,within a period of twelve years from the date of issue of the authorization :

Provided also that where the capital goods are imported for technological upgradation as per condi-tions specified in Para 5.8 of the Foreign Trade Policy or by small scale industry units as defined in para-graph 5.2 of the Foreign Trade Policy, as the case may be, the export obligation shall be fixed equivalent tosix times the duty saved on the goods imported as may be specified on the authorization, or for such higher


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sum as may be fixed by the Licensing Authority or Regional Authority, within a period of eight years from thedate of issue of authorization subject to the further condition that in the case of Small Scale Industry (SSI)units the landed Cost Insurance Freight (CIF) value of such imported capital goods under the scheme shallnot exceed Rupees fifty lakhs and total investment in plant and machinery after such imports shall not exceedthe SSI limit :

Provided also that spares (including refurbished or reconditioned spares), moulds, dies, jigs, fix-tures, tools, refractory for initial lining and catalyst for initial charge, for the existing plant and machinery(imported earlier, under EPCG or otherwise), shall be allowed to be imported under the EPCG schemesubject to an export obligation equivalent to 50% of the normal export obligation prescribed above, to befulfilled in 8 years reckoned from the date of issue of the Authorization, subject to the condition that the CIFvalue of import of the said spares etc. will be limited to 10% of the CIF value of the plant and machineryimported under the EPCG authorization or 10% of the book value of the plant and machinery imported earlierotherwise than under EPCG Scheme, as the case may be.

Provided also that export obligation of a particular block may be set off against the excess exportsmade in the said preceding block(s);

(6) that if the authorisation holder does not claim exemption from the additional duty leviable undersection 3 of the Customs Tariff Act, 1975, the additional duty so paid by him shall not be taken for compu-tation of the net duty saved for the purpose of fixation of export obligation provided the Cenvat credit ofadditional duty paid has not been taken;

(7) that the Authorization Holder and the other specific users or the Authorization Holder, as the casemay be produce within 30 days from the expiry of each block from the date of issue of authorization orwithin such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customsmay allow, evidence to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissionerof Customs showing the extent of export obligation fulfilled, and where the export obligation of any particularblock is not fulfilled in terms of the preceding condition, the importer shall within three months from the expiryof the said block pay duties of customs equal to an amount which bears the same proportion to the dutiesleviable on the goods, but for the exemption contained herein, which the unfulfilled portion of the exportobligation bears to the total export obligation, together with interest at the rate of 15% per annum from thedate of clearance of the goods;

(8) where the Authorization Holder fulfills 75% or more of the export obligation as specified in condition(4) (over and above 100% of the average export obligation) within half of the period specified for exportobligation as mentioned in condition (4), his balance export obligation shall be condoned and he shall betreated to have fulfilled the entire export obligation;

(9) that the capital goods imported, assembled or manufactured are installed in the Common ServiceProvider’s factory or premises and a certificate from the jurisdictional Deputy Commissioner of CentralExcise or Assistant Commissioner of Central Excise, as the case may be, is produced confirming installationand use of capital goods in the Common Service Provider’s factory or premises, within six months from thedate of completion of imports or within such extended period as the Deputy Commissioner of Customs orAssistant Commissioner of Customs, as the case may be, may allow :

Provided that in case of import of spares, the installation certificate shall be produced within threeyears from the date of import :


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Provided further that if the Authorization Holder is not registered with central excise or if he is aservice provider, as the case may be, he may produce the said certificate of installation and usage issued byan independent Chartered Engineer :

Provided also that agro units located in Agri Export Zones or service providers in Agri export Zonesmay move the capital goods within the Agri Export Zones under intimation to the jurisdictional DeputyCommissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, subjectto the condition that the importer shall maintain accurate record of such movement;

(10) that the imports and exports are undertaken through sea ports at Bedi (including Rozi-Jamnagar),Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla,Kattupalli (Tamil Nadu), Kolkata, Krishnapatnam and Ennore (Tamil Nadu) and Karaikal (Union territoryof Puducherry), Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, NhavaSheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any ofthe airports at Ahmedabad, Bangalore, Bhubaneswar, Calicut, Chennai, Cochin, Coimbatore, Dabolim (Goa),Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar,Trivandrum , Varanasi and Visakhapatnam 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,Marripalem Village in Taluk of Edlapadu, District Guntur and Tondiarpet (TNPM), Chennai andIrungattukottai, SIPCOT Industrial Park, Kattrambakkam Village, Sriperumbudur Taluk, Kanchipuram Dis-trict, Tamil Nadu and Melapakkam Village (Arakkonam Taluk, Vellore District) 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) Talegoan (District Pune), Dhannad Rau (District Indore), Kheda (Pithampur,District Dhar), Patli (Gurgaon), Irugur Village (Tamil Nadu), Thudiyalur (Tamil Nadu), Chettipalayam (TamilNadu) and Veerapandi (Tamil Nadu) (Tamil Nadu) and Marripalem Village in Taluk of Edlapadu, DistrictGuntur 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 SpecialEconomic Zones Act, 2005 (28 of 2005):

Provided that the Commissioner of Customs may, by special order or a public notice and subject tosuch conditions as may be specified by him, permit import and export through any other sea-port, airport,inland container depot or through a land customs station within his jurisdiction.

(11) notwithstanding anything contained in condition (6) above, where the Licensing Authority or Re-gional Authority grants extension of block-wise period for any block(s) or overall period of fulfilment ofexport obligation upto a period of two years or regularization of shortfall in export obligation, not exceedingfive percent of such export obligation, the said block-wise period or overall period of export obligation shallbe extended or condoned by the Deputy Commissioner of Customs or Assistant Commissioner of Customs,as the case may be :

Provided that in respect of sick units referred to in the second proviso to condition (4) extension of overall


1414

period of export obligation shall not be allowed :

Provided further that the Regional Authority may grant further extension in the overall period of exportobligation upto a period of further two years if the authorization holder pays fifty percent of duty payable inproportion to the unfulfilled portion of export obligation and agrees to fulfill other conditions as may bespecified by the Regional Authority for this purpose;

Provided further that the Export Obligation period shall not be extended beyond 12 years including theoriginal Export Obligation period of 8 years or 12 years as the case may be.

3. Where the goods specified in the said Table are found defective or unfit for use, the said goods maybe re-exported back to the foreign supplier within three years from the date of payment of duty on theimportation thereof:

Provided that at the time of re-export, the goods are identified to the satisfaction of the Deputy Commissionerof Customs or Assistant Commissioner of Customs, as the case may be, to be the same as the goods whichwere imported.

Explanation – For the purpose of this notification,-

1. “Authorization” includes “Authorization for Annual Requirement”

1A. “Capital goods” has the same meaning as assigned to it in Paragraph 9.12 of the Foreign TradePolicy;2. “Common Service Provider (CSP)” means a service provider who is designated or certified as aCommon Service Provider by the DGFT, Department of Commerce or State Industrial Infrastructural Cor-poration in a Town of Export Excellence.

3. “Export obligation”, -

(1) means obligation on the Common Service provider and each of the specific users endorsed in theauthorization or the Common Service Provider and specific users whose details are informed prior to exportby Common Service provider to the Regional Authority, as the case may be, to export to a place outside India,goods manufactured or capable of being manufactured or services rendered by the use of capital goodsimported in terms of this notification. The export obligation shall be over and above the average level ofexports achieved by the Common Service provider or the specific user in the preceding three licensing yearsfor the same and similar products within the overall export obligation period including the extended period, ifany. Such average shall be the arithmetic mean of export performance in the last 3 years for the same andsimilar products.

Provided that upto 50% of the export obligation may also be fulfilled by export of other good(s)manufactured or service(s) provided by the Common Service provider / the specific user or his group com-pany or managed hotel, which has the EPCG authorization subject to the condition that in such cases,additional export obligation imposed shall be over and above the average exports achieved by the CommonService provider / the specific user or his group company or managed hotel in preceding three years for boththe original and the substitute product(s) or service(s) :


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Provided further that in case of export of goods relating to handicraft, handlooms, cottage, tinysector, agriculture, animal husbandry, floriculture, horticulture, pisciculture, viticulture, poultry, sericulture,carpet, coir and jute the Common Service provider or the specific user shall not be required to maintain theaverage level of exports :

Provided further that in case of export of goods relating to aquaculture(including fisheries), theCommon Service provider or the specific user shall not be required to maintain the average level of exportssubject to the condition that EPCG authorization has been obtained for goods other than fishing trawlers,boats, ships and other similar items.

Provided also that the goods, excepting tools, imported under this notification by the aforesaidsectors, shall not be allowed to be transferred for a period of five years from the date of imports even in caseswhere export obligation has been fulfilled. Transfer of capital goods would, however, be permitted withinthe group companies, after fulfillment of export obligation but before five years from the date of imports,under intimation to Regional Authority and jurisdictional Central Excise Authority:

Provided also that the exports made to such countries as notified by the Director General of ForeignTrade, shall not be counted for fixing average level of exports

Provided also that exports against only such shipping bills which mention the EPCG authorization No.and date shall be counted for the discharge of the export obligation;

Provided also that in the case of authorisations issued on or after the 5th June, 2012, for exports byusers of the common service, to be counted towards fulfilment of export obligation of Common Serviceprovider, the respective shipping bills of the users of common service shall contain the EPCG Authorizationdetails of the Common Service provider andconcerned Regional Authority must be informed about thedetails of the users prior to such export.

Provided also that exports counted against the authorization issued under this notification shall not becounted towards fulfilment of other specific Export Obligations against other EPCG authorizations;

(2) shall be fulfilled through physical exports and the export proceeds shall be realized in freely convert-ible currency. However the following categories of supplies, shall also be counted towards fulfillment ofexport obligation:

(a) deemed exports, namely:

(i) supply of goods against Advance Authorization/Advance Authorization for Annual Requirement/Duty Free Import Authorization (DFIA);

(ii) supply of goods to Export Oriented Units (EOUs) or Software Technology Parks (STPs) or Elec-tronics Hardware Technology Parks (EHTPs) or Bio-Technology Parks (BTPs);

(iii) supply of goods to projects financed by multilateral or bilateral agencies or Funds as notified byDepartment of Economic Affairs (DEA), Ministry of Finance (MOF) under International Competitive Bid-ding (ICB) in accordance with procedures of those agencies or Funds, where legal agreements provide fortender evaluation without including customs duty; supply and installation of goods and equipments (singleresponsibility of turnkey contracts) to projects financed by multilateral or bilateral agencies or Funds asnotified by DEA, MOF under ICB, in accordance with procedures of those agencies/Funds, where bids may


1416

have been invited and evaluated on the basis of Delivery Duty Paid (DDP) prices for goods manufacturedabroad;(iv) supply of goods to any project or purpose in respect of which the Ministry of Finance, by a notifica-tion, permits import of such goods at zero customs duty and the supply is made under ICB procedure;(v) supply of goods to mega power projects as provided in sub-clause (ii) of clause (f) of para 8.2 ofForeign Trade Policy.(vi) Supply of goods to nuclear power projects through competitive bidding as provided in clause (j) ofpara 8.2 of Foreign Trade Policy;” shall be substituted.

(b) Supply of ITA-1 items to Domestic Tariff Area, provided realization is in free foreign exchange;

(c) Royalty payments received in freely convertible currency and foreign exchange received for Re-search and Development (R and D) services; and

(d) Payments received in rupee terms for port handling services in terms of chapter 9 of the ForeignTrade Policy.

4. “Foreign Trade Policy” means the Foreign Trade Policy 2009-2014 published in the gazette of India,Part II, Section 3, Sub-section (ii) vide notification of the Government of India in the Ministry of Commerceand Industry, No.1/2009-2014 dated the 27th August, 2009 as amended from time to time;

5. “Licensing Authority or Regional Authority” means the Director General of Foreign Trade appointedunder section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officerauthorized by him to grant an authorization under the said Act;

6. “Manufacture” has the same meaning as defined in clause (f) of section 2 of the Central Excise Act, 1944(1 of 1944).

7. “Towns of Export Excellence(TEE)” means a selected town producing goods of Rs.750 Crores ormore based on potential for growth in exports. However for TEE in Handloom, Handicraft, Agriculture andfisheries sector the threshold limit would be Rs.150 Crores.

TableS.No. Description of goods

(1) (2)

1. Capital goods for pre-production, production and post production including second hand capitalgoods.

2. Capital goods in Semi Knocked Down (SKD) / Completely Knocked Down (CKD) conditions tobe assembled into capital goods by the importer.

3. Spare parts of CIF value upto 10% of the CIF value of goods specified at Serial Nos.1 and 2 asactually imported and required for maintenance of capital goods so imported, assembled, ormanufactured.

4. Spare parts of CIF value upto 10% of the book value of the existing plant and machinery of theauthorization holder.

GENERAL EXEMPTION NO. 98L

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GENERAL EXEMPTION NO.98L

Exemption to goods specified in the Table:[Notifn. No. 101/09-Cus., dt.11.9.2009 as amended by 123/09, 92/10,93/10, 40/11, 37/12, 40/12,42/12, 50/12, 3/13, 4/13, 20/13, 5/15]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts goods specified in the Table annexed hereto, from,-

(i) the whole of the duty of customs leviable thereon under the First Schedule to the Customs TariffAct, 1975 (51 of 1975), and


2. The exemption under this notification shall be subject to the following conditions, namely :-

(1) that the goods are imported for export of engineering and electronic products, basic chemicals andpharmaceuticals, apparels and textiles, plastics, handicrafts, chemicals and allied products, leather and leatherproducts, paper and paperboard and articles thereof, ceramic products, refractories, glass and glassware,articles thereof, plywood and allied products, marine products, sports rubber and goods and toys and areother than those required for export of products covered under following chapters or headings of the FirstSchedule to the Customs Tariff Act, 1975 (51 of 1975), namely:-

Chapters 1,2, 4, 5(except handicrafts), 6 to 24, 25 to 27, 31, 43, 44(except plywood and allied products),45,47,68(except handicrafts), 71,81 (metals in primary and intermediate forms only),89,93,97(except handicrafts),98;headings 4011 to 4013, 7401to 7406, 7501 to 7504, 7601 to 7603, 7801, 7802, 7901 to 7903, 8001, 8002 and8401.

(2) that the goods imported are covered by a valid authorization issued under the Export PromotionCapital Goods (EPCG) Scheme to Common Service Providers(hereinafter referred to as CSP) designated bythe Director General Of Foreign Trade (hereinafter referred to as DGFT), Department ofCommerce(hereinafter referred to as DOC) or State Industrial Infrastructural Corporation in Towns OfExport Excellence (hereinafter referred to as TEE) in terms of Chapter 5 of the Foreign Trade Policypermitting import of goods at zero customs duty and the said authorization is produced for debit by the properofficer of customs at the time of clearance:

Provided that for import of spare parts specified at Sr.No.4 of the said Table, the validity period of theauthorization shall be deemed to be the period permitted for fulfilment of the export obligation in full :

(2A) that the catalyst for one subsequent charge shall be allowed, under the authorization in which plant,machinery or equipment and catalyst for initial charge have been imported, except in cases where the Re-gional Authority issues a separate authorization for catalyst for one subsequent charge after the plant, ma-chinery or equipment and catalyst for initial charge have already been imported.

(3) that the authorization issued under the scheme shall have the details of the users of the said capitalgoods and the quantum of the Export Obligation(hereinafter referred to as EO) which each user would fulfil


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and for authorizations issued on or after the 5th June, 2012, the details of the capital goods and the quantumof Export Obligation which Common Service provider shall fulfil shall be mentioned in the authorization.

(4) that the Common Service provider or any of the specific users is not currently availing any benefitsunder Technology Upgradation Fund Scheme (TUFS) administered by Ministry of Textiles, Government ofIndia.

Provided that this condition shall not be applicable where the benefit under TUFS has been obtained butexact line of business in TUFS is different from the line of business under EPCG or where benefits availedunder TUFS are refunded, with applicable interest, before availing zero duty EPCG Authorization.

(5) that the Common Service provider or any of the specific users is not issued, in the year of issuanceof zero duty EPCG authorization, the duty credit scrips under SHIS scheme under para 3.16 of the ForeignTrade Policy. Provided that this condition shall not be applicable where already availed SHIS benefit that isunutilized is surrendered or where benefits availed under SHIS that is utilized is refunded, with applicableinterest, before availing zero duty EPCG authorization. SHIS scrips which are surrendered or benefit re-funded or not issued in a particular year for the reason that zero duty EPCG authorization has been issued inthat year shall not be issued in future years also.

(6) that the authorization for annual requirement shall indicate export product to be exported under theauthorization. The authorization holder shall submit a Nexus Certificate from an independent CharteredEngineer (CEC) in the format specified in Appendix 32A of HBP (vol. I) notified under the Foreign TradePolicy, certifying nexus of imported capital goods with the export product, to the Customs authorities at thetime of clearance of imported capital goods. A copy of the CEC shall be submitted to the concerned Re-gional Authority alongwith copy of the bill of entry,within thirty days from the date of import of the CapitalGoods.

(7) that the goods imported shall not be disposed of or transferred by sale or lease or any other mannertill export obligation is complete.

(8) that the Common Service provider and each of the specific users shall execute a bond in such formand for such sum as may be specified by the Deputy Commissioner of Customs or Assistant Commissionerof Customs and a bank guarantee equivalent to their portion of duty foregone in terms of export obligationapportioned in the authorization binding themselves to fulfil export obligation on FOB basis equivalent to sixtimes the duty saved on the goods imported as may be specified on the licence or authorization, or for suchhigher sum as may be fixed or endorsed by the Licensing Authority or Regional Authority in terms of Para5.10 of the Handbook of Procedures Vol I, issued under para 2.4 of the Foreign Trade Policy within a periodof six years from the date of issue of licence or authorization, in the following proportions, namely :-S.No. Period from the date of Proportion of total export obligation

issue of Authorization

(1) (2) (3)

1. Block of 1st to 4th year 50%2. Block of 5th to 6th year 50%

Provided that in case authorizations are issued on or after the 5th June, 2012, the Common Serviceprovider shall execute the bond with bank guarantee and the bank guarantee shall be equivalent to hundredpercent. of the duty foregone, to be given by Common Service provider or by any one of the users or a


1419

combination thereof, at the option of the Common Service provider:Provided further that where a sick unit is notified by the Board for Industrial and Financial Reconstruction

(BIFR) or where a rehabilitation scheme is announced by the concerned State Government in respect of sickunit for its revival, the export obligation may be fulfilled within time period allowed by the Licensing Authorityor Regional Authority as per the rehabilitation package prepared by the operating agency and approved byBIFR or rehabilitation department of State Government. In cases where the time period is not specified in therehabilitation package, the export obligation may be fulfilled within the time period allowed by the LicensingAuthority or Regional Authority which shall not exceed twelve years.

Provided also that spares (including refurbished/reconditioned spares), moulds, dies, jigs, fixtures,tools, refractory for initial lining and catalyst for initial charge, for the existing plant and machinery (im-ported earlier, under EPCG or otherwise), shall be allowed to be imported under the EPCG scheme subjectto an export obligation equivalent to 50% of the normal export obligation prescribed above, to be fulfilled in6 years reckoned from the date of issue of the Authorization, subject to the condition that the CIF value ofimport of the above spares etc. will be limited to 10% of the CIF value of the plant and machinery importedunder the EPCG authorization or 10% of the book value of the plant and machinery imported earlier other-wise than under EPCG Scheme, as the case may be.


(9) that if the Authorization Holder does not claim exemption from the additional duty leviable undersection 3 of the Customs Tariff Act, 1975, the additional duty so paid by him shall not be taken for computa-tion of the net duty saved for the purpose of fixation of export obligation provided the Cenvat credit ofadditional duty paid has not been taken;

(10) that the Authorization Holder and the other specific users or the Authorization Holder, as the casemay be produce within 30 days from the expiry of each block from the date of issue of authorization orwithin such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customsmay allow, evidence to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissionerof Customs showing the extent of export obligation fulfilled, and where the export obligation of any particularblock is not fulfilled in terms of the preceding condition, the importer shall within three months from the expiryof the said block pay duties of customs equal to an amount which bears the same proportion to the dutiesleviable on the goods, but for the exemption contained herein, which the unfulfilled portion of the exportobligation bears to the total export obligation, together with interest at the rate of 15% per annum from thedate of clearance of the goods;

(11) where the Authorization Holder fulfills 75% or more of the export obligation as specified in condition(7) (over and above 100% of the average export obligation) within half of the period specified for exportobligation as mentioned in condition (7), his balance export obligation shall be condoned and he shall betreated to have fulfilled the entire export obligation;

(12) that the capital goods imported, assembled or manufactured are installed in the Common ServiceProvider’s factory or premises and a certificate from the jurisdictional Deputy Commissioner of CentralExcise or Assistant Commissioner of Central Excise, as the case may be, is produced confirming installationand use of capital goods in the Common Service Provider’s factory or premises, within six months from thedate of completion of imports or within such extended period as the Deputy Commissioner of Customs orAssistant Commissioner of Customs, as the case may be, may allow :


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Provided that in case of import of spares, the installation certificate shall be produced within three years fromthe date of import :

Provided further that if the importer is not registered with central excise, he may produce the said certificateof installation and usage issued by an independent Chartered Engineer :

(13) that the imports and exports are undertaken through sea ports at Bedi (including Rozi-Jamnagar),Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla,Kattupalli (Tamil Nadu), Kolkata, Krishnapatnam and Ennore (Tamil Nadu) and Karaikal (Union territoryof Puducherry), Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, NhavaSheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any ofthe airports at Ahmedabad, Bangalore, Bhubaneswar, Calicut, Chennai, Cochin, Coimbatore, Dabolim (Goa),Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar,Trivandrum , Varanasi and Visakhapatnam 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,Marripalem Village in Taluk of Edlapadu, District Guntur and Tondiarpet (TNPM), Chennai and Irungattukottai,SIPCOT Industrial Park, Kattrambakkam Village, Sriperumbudur Taluk, Kanchipuram District, Tamil Naduand Melapakkam Village (Arakkonam Taluk, Vellore District) 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) Talegoan (District Pune), Dhannad Rau (District Indore), Kheda (Pithampur, DistrictDhar), Patli (Gurgaon), Irugur Village (Tamil Nadu), Thudiyalur (Tamil Nadu), Chettipalayam (Tamil Nadu)and Veerapandi (Tamil Nadu) (Tamil Nadu) and Marripalem Village in Taluk of Edlapadu, District Guntur orthrough 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 EconomicZones Act, 2005 (28 of 2005):


(14) notwithstanding anything contained in condition (9) above, where the Licensing Authority or Re-gional Authority grants extension of block-wise period for any block(s) or overall period of fulfilment ofexport obligation upto a period of two years or regularization of shortfall in export obligation, not exceedingfive percent of such export obligation, the said block-wise period or overall period of export obligation shall beextended or condoned by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, asthe case may be :

Provided that in respect of sick units referred to in the first proviso to condition (7) extension ofoverall period of export obligation shall not be allowed :

Provided further that the Export Obligation period shall not be extended beyond 12 years includingthe original Export Obligation period of 6 years.


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Provided that at the time of re-export, the goods are identified to the satisfaction of the DeputyCommissioner of Customs or Assistant Commissioner of Customs, as the case may be, to be the same as thegoods which were imported.

4. This notification, for import of goods specified at Serial Nos.1 and 2 of the said table, shall have effect upto31st December, 2013.Explanation – For the purpose of this notification,-

1. “Authorization” includes “Authorization for Annual Requirement”

1A. “Capital goods” has the same meaning as assigned to it in Paragraph of 9.12 of the Foreign TradePolicy;

2. “Common Service Provider (CSP)” means a service provider who is designated or certified as aCommon Service Provider by the DGFT, Department of Commerce or State Industrial Infrastructural Cor-poration in a Town of Export Excellence.

3. “Export obligation”, -(1) means obligation on the Common Service provider and each of the specific users endorsed in theauthorization or the Common Service provider and specific users whose details are informed prior to exportby Common Service provider to the Regional Authority, as the case may be to export to a place outsideIndia, goods manufactured or capable of being manufactured or services rendered by the use of capital goodsimported in terms of this notification. The export obligation shall be over and above the average level ofexports achieved by the Common Service provider or the specific user in the preceding three licensing yearsfor the same and similar products within the overall export obligation period including the extended period, ifany. Such average shall be the arithmetic mean of export performance in the last 3 years for the same andsimilar products.

Provided that upto 50% of the export obligation may also be fulfilled by export of other good(s)manufactured or service(s) provided by the Common Service provider or the specific user or his groupcompany or managed hotel, which has the EPCG authorization subject to the condition that in such cases,additional export obligation imposed shall be over and above the average exports achieved by the CommonService provider or the specific user or his group company or managed hotel in preceding three years for boththe original and the substitute product(s) or service(s) :

Provided further that in case of export of goods relating to handicraft, handlooms, cottage, tinysector, agriculture, animal husbandry, floriculture, horticulture, pisciculture, viticulture, poultry, sericul-ture, carpet, coir and jute the Common Service provider or the specific user shall not be required to maintainthe average level of exports :

Provided further that in case of export of goods relating to aquaculture(including fisheries), theCommon Service provider or the specific user shall not be required to maintain the average level of exportssubject to the condition that EPCG authorization has been obtained for goods other than fishing trawlers,boats, ships and other similar items.


1422

Provided also that the goods, excepting tools, imported under this notification by the aforesaid sec-tors, shall not be allowed to be transferred for a period of five years from the date of imports even in caseswhere export obligation has been fulfilled. Transfer of capital goods would, however, be permitted within thegroup companies, after fulfillment of export obligation but before five years from the date of imports, underintimation to Regional Authority and jurisdictional Central Excise Authority :

Provided also that the exports made to such countries as notified by the Director General of ForeignTrade, shall not be counted for fixing average level of exports.

Provided also that exports against only such shipping bills which mention the EPCG authorizationNo. and date shall be counted for the discharge of the export obligation;

Provided also that in the case of authorisations issued on or after the 5th June, 2012 for exports byusers of the common service, to be counted towards fulfilment of export obligation of Common Service therespective shipping bills of the users of common service shall contain the EPCG Authorization details of theCommon Service provider and concerned Regional Authority must be informed about the details of the usersprior to such export.

Provided also that exports counted against the authorization issued under this notification shall not becounted towards fulfilment of other specific Export Obligations against other EPCG authorizations;

(2) shall be fulfilled through physical exports and the export proceeds shall be realized in freely convert-ible currency. However, the following categories of supplies, shall also be counted towards fulfillment ofexport obligation:




(iii) supply of goods to projects financed by multilateral or bilateral agencies or Funds as notified byDepartment of Economic Affairs (DEA), Ministry of Finance (MOF) under International Competitive Bid-ding (ICB) in accordance with procedures of those agencies or Funds, where legal agreements provide fortender evaluation without including customs duty; supply and installation of goods and equipments (singleresponsibility of turnkey contracts) to projects financed by multilateral or bilateral agencies or Funds asnotified by DEA, MOF under ICB, in accordance with procedures of those agencies/Funds, where bids mayhave been invited and evaluated on the basis of Delivery Duty Paid (DDP) prices for goods manufacturedabroad;

(iv) supply of goods to any project or purpose in respect of which the Ministry of Finance, by a notifica-tion, permits import of such goods at zero customs duty and the supply is made under ICB procedure;

(v) supply of goods to mega power projects as provided in sub-clause (ii) of clause (f) of para 8.2 of


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Foreign Trade Policy;

(vi) Supply of goods to nuclear power projects through competitive bidding as provided in clause (j) ofpara 8.2 of Foreign Trade Policy;

(b) Supply of ITA-1 items to Domestic Tariff Area, provided realization is in free foreign exchange;(c) Royalty payments received in freely convertible currency and foreign exchange received for Re-search and Development (R&D) services; and(d) Payments received in rupee terms for port handling services in terms of chapter 9 of the ForeignTrade Policy.

4. “Foreign Trade Policy” means the Foreign Trade Policy 2009-2014 published in the gazette ofIndia, Part II, Section 3, Sub-section (ii) vide notification of the Government of India in the Ministry ofCommerce and Industry, No.1/2009-2014 dated the 27th August, 2009 as amended from time to time;5. “Licensing Authority or Regional Authority” means the Director General of Foreign Trade appointedunder section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officerauthorized by him to grant an authorization under the said Act;6. “Manufacture” has the same meaning as defined in clause (f) of section 2 of the Central Excise Act,1944 (1 of 1944).

7. “Towns of Export Excellence(TEE)” means a selected town producing goods of Rs.750 Crores ormore based on potential for growth in exports. However for TEE in Handloom, Handicraft, Agriculture andfisheries sector the threshold limit would be Rs.150 Crores.


(1) (2)





GENERAL EXEMPTION NO.98M

Exemption to goods specified in the Table:[Notifn. No. 102/09-Cus., dt.11.9.2009 as amended by 123/09, 92/10, 93/10, 40/11, 37/12, 40/12,42/12, 50/12, 3/13, 4/13, 20/13, 5/15]


S.No. Description of goods

(1) (2)

GENERAL EXEMPTION NO. 98M

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1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts goods specified in the Table annexed hereto, from,-

(i) the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act,1975 (51 of 1975), and


2. The exemption under this notification shall be subject to the following conditions, namely :-(1) that the goods are imported for export of engineering and electronic products, basic chemicals andpharmaceuticals, apparels and textiles, plastics, handicrafts,chemicals and allied products, leather and leatherproducts, paper and paperboard and articles thereof, ceramic products, refractories, glass and glassware,rubber and articles thereof, plywood and allied products, marine products, sports goods and toys and are otherthan those required for export of products covered under following chapters or headings of the First Scheduleto the Customs Tariff Act, 1975 (51 of 1975), namely:-

Chapters 1,2, 4, 5 (except handicrafts), 6 to 24, 25 to 27, 31, 43, 44 (except plywood and allied products),45,47,68 (except handicrafts), 71,81 (metals in primary and intermediate forms only),89,93,97(except handi-crafts),98; headings 4011 to 4013, 7401 to 7406, 7501 to 7504, 7601 to 7603, 7801, 7802, 7901 to 7903,8001, 8002 and 8401.

(2) that the goods imported are covered by a valid authorization issued under the Export PromotionCapital Goods (EPCG) Scheme in terms of Chapter 5 of the Foreign Trade Policy permitting import of goodsat zero customs duty and the said authorization is produced for debit by the proper officer of customs at thetime of clearance:

Provided that for import of spare parts specified at Sr.No.4 of the said Table, the validity period of theauthorization shall be deemed to be the period permitted for fulfilment of the export obligation in full :

(2A) that the catalyst for one subsequent charge shall be allowed, under the authorization in which plant,machinery or equipment and catalyst for initial charge have been imported, except in cases where the Re-gional Authority issues a separate authorization for catalyst for one subsequent charge after the plant, ma-chinery or equipment and catalyst for initial charge have already been imported.

(3) that the importer is not currently availing any benefits under Technology Upgradation Fund Scheme(TUFS) administered by Ministry of Textiles, Government of India.

Provided that this condition shall not be applicable where the benefit under TUFS has been obtainedbut exact line of business in TUFS is different from the line of business under EPCG or where benefitsavailed under TUFS are refunded, with applicable interest, before availing zero duty EPCG Authorization.

(4) that the importer is not issued, in the year of issuance of zero duty EPCG authorization, the dutycredit scrips under SHIS scheme under para 3.16 of the Foreign Trade Policy. provided that this conditionshall not be applicable where already availed SHIS benefit that is unutilized is surrendered or where benefitsavailed under SHIS that is utilized is refunded, with applicable interest, before availing zero duty EPCGauthorization. SHIS scrips which are surrendered or benefit refunded or not issuedin a particular year for the


1425

reason that zero duty EPCG authorization has been issued in that year shall not be issued in future years also.

(5) that the authorization for annual requirement shall indicate export product to be exported under theauthorization. The authorization holder shall submit a Nexus Certificate from an independent CharteredEngineer (CEC) in the format specified in Appendix 32A of HBP (vol. I) notified under the Foreign TradePolicy, certifying nexus of imported capital goods with the export product, to the Customs authorities atthe time of clearance of imported capital goods. A copy of the CEC shall be submitted to the concernedRegional Authority alongwith copy of the bill of entry, within thirty days from the date of import of theCapital Goods.

(6) that the goods imported shall not be disposed of or transferred by sale or lease or any other mannertill export obligation is complete.

(7) that the importer executes a bond in such form and for such sum and with such surety or security asmay be specified by the Deputy Commissioner of Customs or Assistant Commissioner of Customs bindinghimself to comply with all the conditions of this notification as well as to fulfill export obligation on Free OnBoard (FOB) basis equivalent to six times the duty saved on the goods imported as may be specified on theauthorization, or for such higher sum as may be fixed or endorsed by the Licensing Authority or RegionalAuthority in terms of Para 5.10 of the Handbook of Procedures Vol I, issued under para 2.4 of the ForeignTrade Policy, within a period of six years from the date of issue of Authorization, in the following propor-tions, namely :-

S.No. Period from the date of Proportion of total export obligationissue of Authorization

(1) (2) (3)


Provided that the export obligation shall be 75% of the normal export obligation specified abovewhen fulfilled by exportof following green technology products, namely, equipment for solar energy de-centralized and grid connected products, bio-mass gassifier, bio-mass or waste boiler, vapour absorptionchillers, waste heat boiler, waste heat recovery units, unfired heat recovery steam generators, wind turbine,solar collector and parts thereof, water treatment plants, wind mill and wind mill turbine or engine, othergenerating sets-wind powered, electrically operated vehicles -motor cars, electrically operated vehicles -lorries and trucks, electrically operated vehicles -motor cycle and mopeds, and solar cells:

Provided further that for units located in Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram,Nagaland, Sikkim and Tripura, the export obligation shall be 25% of the normal export obligation specifiedabove.

Provided also that where a sick unit is notified by the Board for Industrial and Financial Reconstruc-tion (BIFR) or where a rehabilitation scheme is announced by the concerned State Government in respect ofsick unit for its revival, the export obligation may be fulfilled within time period allowed by the LicensingAuthority or Regional Authority as per the rehabilitation package prepared by the operating agency andapproved by BIFR or rehabilitation department of State Government . In cases where the time period is notspecified in the rehabilitation package, the export obligation may be fulfilled within the time period allowed bythe Licensing Authority or Regional Authority which shall not exceed twelve years.


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Provided also that spares (including refurbished/reconditioned spares), moulds, dies, jigs, fixtures,tools, refractory for initial lining and catalyst for initial charge, for the existing plant and machinery (importedearlier, under EPCG or otherwise), shall be allowed to be imported under the EPCG scheme subject to anexport obligation equivalent to 50% of the normal export obligation prescribed above, to be fulfilled in 6 yearsreckoned from the date of issue of the Authorization, subject to the condition that the CIF value of import ofthe above spares etc. will be limited to 10% of the CIF value of the plant and machinery imported under theEPCG authorization or 10% of the book value of the plant and machinery imported earlier otherwise thanunder EPCG Scheme, as the case may be.

Provided also that export obligation of a particular block may be set off against the excess exports made inthe said preceding block(s);

(8) that if the importer does not claim exemption from the additional duty leviable under section 3 of theCustoms Tariff Act, 1975, the additional duty so paid by him shall not be taken for computation of the net dutysaved for the purpose of fixation of export obligation provided the Cenvat credit of additional duty paid hasnot been taken;

(9) that the importer produces within 30 days from the expiry of each block from the date of issue ofauthorization or within such extended period as the Deputy Commissioner of Customs or Assistant Com-missioner of Customs may allow, evidence to the satisfaction of the Deputy Commissioner of Customs orAssistant Commissioner of Customs showing the extent of export obligation fulfilled, and where the exportobligation of any particular block is not fulfilled in terms of the preceding condition, the importer shallwithin three months from the expiry of the said block pay duties of customs equal to an amount which bearsthe same proportion to the duties leviable on the goods, but for the exemption contained herein, which theunfulfilled portion of the export obligation bears to the total export obligation, together with interest at the rateof 15% per annum from the date of clearance of the goods;

(10) where the importer fulfills 75% or more of the export obligation as specified in condition (6) (overand above 100% of the average export obligation) within half of the period specified for export obligation asmentioned in condition (6), his balance export obligation shall be condoned and he shall be treated to havefulfilled the entire export obligation;

(11) that the capital goods imported, assembled or manufactured are installed in the importer’s factory orpremises and a certificate from the jurisdictional Deputy Commissioner of Central Excise or Assistant Com-missioner of Central Excise, as the case may be, is produced confirming installation and use of capital goodsin the importer’s factory or premises, within six months from the date of completion of imports or within suchextended period as the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as thecase may be, may allow :


Provided further that if the importer is not registered with central excise, he may produce the saidcertificate of installation and usage issued by an independent Chartered Engineer :


1427

Provided further that in the case of manufacturer exporter and merchant exporter having supportingmanufacturer(s) or vendor(s), the capital goods may be installed at the factory or premises of such otherperson whose name and address are endorsed on the authorization referred to in condition (2) and also onthe shipping bills and where the bond for full difference of duty, if necessary, in terms of condition (6) withor without a bank guarantee, as the case may be, is executed by the importer and such other person bindingthemselves jointly and severally to fulfill the export obligation and all other conditions of this notificationand to pay duty with interest at the rate of 15% per annum in case of default :

(12) that the imports and exports are undertaken through sea ports at Bedi (including Rozi-Jamnagar),Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla,Kattupalli (Tamil Nadu), Kolkata, Krishnapatnam and Ennore (Tamil Nadu) and Karaikal (Union territoryof Puducherry), Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, NhavaSheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any ofthe airports at Ahmedabad, Bangalore, Bhubaneswar, Calicut, Chennai, Cochin, Coimbatore, Dabolim (Goa),Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar,Trivandrum , Varanasi and Visakhapatnam 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,Marripalem Village in Taluk of Edlapadu, District Guntur and Tondiarpet (TNPM), Chennai andIrungattukottai, SIPCOT Industrial Park, Kattrambakkam Village, Sriperumbudur Taluk, Kanchipuram Dis-trict, Tamil Nadu and Melapakkam Village (Arakkonam Taluk, Vellore District) 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) Talegoan (District Pune), Dhannad Rau (District Indore), Kheda (Pithampur,District Dhar), Patli (Gurgaon), Irugur Village (Tamil Nadu), Thudiyalur (Tamil Nadu), Chettipalayam (TamilNadu) and Veerapandi (Tamil Nadu) and Marripalem Village in Taluk of Edlapadu, District Guntur or throughthe Land Customs Station at Agartala, Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga,Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad andSutarkhandi or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005(28 of 2005):


(13) notwithstanding anything contained in condition (8) above, where the Licensing Authority or Re-gional Authority grants extension of block-wise period for any block(s) or overall period of fulfilment ofexport obligation upto a period of two years or regularization of shortfall in export obligation, not exceedingfive percent of such export obligation, the said block-wise period or overall period of export obligation shallbe extended or condoned by the Deputy Commissioner of Customs or Assistant Commissioner of Customs,as the case may be :Provided that in respect of sick units referred to in the first proviso to condition (6), extension of overall periodof export obligation shall not be allowed :


1428


Provided that at the time of re-export, the goods are identified to the satisfaction of the Deputy Commissionerof Customs or Assistant Commissioner of Customs, as the case may be, to be the same as the goods whichwere imported.

4. This notification, for import of goods specified at Serial Nos.1 and 2 of the said table shall haveeffect upto 31st December, 2013.

Explanation - For the purpose of this notification,-

1. “Authorization” includes “Authorization for Annual Requirement”.

1A. “Capital goods” has the same meaning as assigned to it in Paragraph 9.12 of the Foreign TradePolicy;2. “Export obligation”, -

(1) means obligation on the importer to export to a place outside India, goods manufactured or capable ofbeing manufactured or services rendered by the use of capital goods imported in terms of this notification.The export obligation shall be over and above the average level of exports achieved by the importer in thepreceding three licensing years for the same and similar products within the overall export obligation periodincluding the extended period, if any. Such average shall be the arithmetic mean of export performance inthe last 3 years for the same andsimilar products.

Provided that upto 50% of the export obligation may also be fulfilled by export of other good(s)manufactured or service(s) provided by the importer or his group company or managed hotel, which has theEPCG authorization subject to the condition that in such cases, additional export obligation imposed shall beover and above the average exports achieved by the importer or his group company or managed hotel inpreceding three years for both the original and the substitute product(s) / service(s) :

Provided further that in case of export of goods relating to handicraft, handlooms, cottage, tinysector, agriculture, animal husbandry, floriculture, horticulture, pisciculture, viticulture, poultry, sericul-ture, carpet, coir and jute the importer shall not be required to maintain the average level of exports :

Provided further that in case of export of goods relating to aquaculture(including fisheries), theimporter shall not be required to maintain the average level of exports subject to the condition that EPCGauthorization has been obtained for goods other than fishing trawlers, boats, ships and other similar items.

Provided also that the goods, excepting tools, imported under this notification by the aforesaid sec-tors, shall not be allowed to be transferred for a period of five years from the date of imports even in caseswhere export obligation has been fulfilled. Transfer of capital goods would, however, be permitted withinthe group companies, after fulfillment of export obligation but before five years from the date of imports,under intimation to Regional Authority and jurisdictional Central Excise Authority :

Provided also that the exports made to such countries as notified by the Director General of ForeignTrade, shall not be counted for fixing average level of exports:



1429

(2) shall be fulfilled through physical exports and the export proceeds shall be realized in freely convert-ible currency. However the following categories of supplies, shall also be counted towards fulfillment ofexport obligation:(a) deemed exports, namely:(i) supply of goods against Advance Authorization/Advance Authorization for Annual Requirement/Duty Free Import Authorization (DFIA);


(iii) supply of goods to projects financed by multilateral or bilateral agencies or Funds as notified by Depart-ment of Economic Affairs (DEA), Ministry of Finance (MOF) under International Competitive Bidding(ICB) in accordance with procedures of those agencies or Funds, where legal agreements provide for tenderevaluation without including customs duty; supply and installation of goods and equipments (single responsi-bility of turnkey contracts) to projects financed by multilateral or bilateral agencies or Funds as notified byDEA, MOF under ICB, in accordance with procedures of those agencies/Funds, where bids may have beeninvited and evaluated on the basis of Delivery Duty Paid (DDP) prices for goods manufactured abroad;(iv) supply of goods to any project or purpose in respect of which the Ministry of Finance, by a notifica-tion, permits import of such goods at zero customs duty and the supply is made under ICB procedure;(v) supply of goods to mega power projects as provided in sub-clause (ii) of clause (f) of para 8.2 ofForeign Trade Policy;(vi) Supply of goods to nuclear power projects through competitive bidding as provided in clause (j) ofpara 8.2 of Foreign Trade Policy;(b) Supply of ITA-1 items to Domestic Tariff Area, provided realization is in free foreign exchange;(c) Royalty payments received in freely convertible currency and foreign exchange received for Re-search & Development (R&D) services; and

(d) Payments received in rupee terms for port handling services in terms of chapter 9 of the ForeignTrade Policy.3. “Foreign Trade Policy” means the Foreign Trade Policy 2009-2014 published in the gazette ofIndia, Part II, Section 3, Sub-section (ii) vide notification of the Government of India in the Ministry ofCommerce and Industry, No.1/2009-2014 dated the 27th August, 2009 as amended from time to time;

4. “Licensing Authority or Regional Authority” means the Director General of Foreign Trade appointedunder section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officerauthorized by him to grant an authorization under the said Act;

5. “Manufacture” has the same meaning as defined in clause (f) of section 2 of the Central Excise Act,1944 (1 of 1944).


(1) (2)

1. Capital goods for pre-production, production and post production including second hand capital


1430

goods.2. Capital goods in Semi Knocked Down (SKD) / Completely Knocked Down (CKD) conditions to

be assembled into capital goods by the importer.3. Spare parts of CIF value upto 10% of the CIF value of goods specified at Serial Nos.1 and 2 as

actually imported and required for maintenance of capital goods so imported, assembled, or manu-factured.


GENERAL EXEMPTION NO.98N

Exemption to goods specified in the Table:[Notifn. No. 103/09-Cus., dt.11.9.2009 as amended by 123/09, 92/10, 93/10, 37/12, 40/12, 42/12,50/12, 3/13, 4/13, 20/13, 5/15]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts goods specified in the Table annexed hereto, from,-

(i) so much of the duty of customs leviable thereon which is specified in the First Schedule to theCustoms Tariff Act, 1975 (51 of 1975) as is in excess of the amount calculated at the rate of three percent ad-valorem, and

(ii) the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, whenspecifically claimed by the importer.

2. The exemption under this notification shall be subject to the following conditions, namely :-(1) that the goods imported are covered by a valid authorization issued under the Export Promotion CapitalGoods (EPCG) Scheme in terms of Chapter 5 of the Foreigen Trade Policy permitting import of goods at therate of three percent duty and the said authorization is produced for debit by the proper officer of customs atthe time of clearance :

Provided that for import of spare parts specified at Sr.No.4 of the said Table, the validity period of theauthorization shall be deemed to be the period permitted for fulfillment of the export obligation in full :

Provided further that the import of motor cars, sports utility vehicles or all purpose vehicles shall be allowedonly to hotels, travel agents, tour operators or tour transport operators and companies owning or operatinggolf resorts, subject to the condition that,-

(i) the total foreign exchange earning from hotel, travel and tourism and golf tourism sectors in currentand preceding three licensing years is rupees one crore fifty lakhs or more;

(ii) the duty saved amount on all EPCG authorizations issued in a licensing year for import of motorcars, sports utility vehicles or all purpose vehicles shall not exceed 50% of average foreign exchange earn-ings from hotel, travel and tourism and golf tourism sectors in preceding three licensing years; and

(iii) the vehicles imported shall be so registered that the vehicle is used for tourist purpose only and a

GENERAL EXEMPTION NO. 98N

1431

copy of the registration certificate shall be submitted to the concerned Customs authorities as a confirmationof import of vehicle within six months from the date of import:

Provided also that the benefit of import of capital goods at concessional duty under this notification forcreation of modern infrastructure shall be extended only to such retailers who have a minimum area of 1000square metres.(1A) that the catalyst for one subsequent charge shall be allowed, under the authorization in which plant,machinery or equipment and catalyst for initial charge have been imported, except in cases where the Re-gional Authority issues a separate authorization for catalyst for one subsequent charge after the plant, ma-chinery or equipment and catalyst for initial charge have already been imported.

(2) that the authorization for annual requirement shall indicate export product to be exported under theauthorization. The authorization holder shall submit a Nexus Certificate from an independent CharteredEngineer (CEC) in the format specified in Appendix 32A of HBP (vol. I) notified under the Foreign TradePolicy, certifying nexus of imported capital goods with the export product, to the Customs authorities at the time of clearance of imported capital goods. A copy of the CEC shall be submitted to the concernedRegional Authority alongwith copy of the bill of entry, within thirty days from the date of import of the CapitalGoods.

(3) that the goods imported shall not be disposed of or transferred by sale or lease or any other mannertill export obligation is completed.

(4) that the importer executes a bond in such form and for such sum and with such surety or security asmay be specified by the Deputy Commissioner of Customs or Assistant Commissioner of Customs bindinghimself to comply with all the conditions of this notification as well as to fulfill export obligation on FOBbasis equivalent to eight times the duty saved on the goods imported as may be specified on the authoriza-tion, or for such higher sum as may be fixed or endorsed by the Licensing Authority or Regional Authority interms of Para 5.10 of the Handbook of Procedures Vol I, issued under para 2.4 of the Foreign Trade Policy,within a period of eight years from the date of issue of Authorization, in the following proportions, namely :-S.No. Period from the date of Proportion of total export obligation

issue of Authorization(1) (2) (3)


Provided that the export obligation shall be 75% of the normal export obligation specified abovewhen fulfilled by export of following green technology products, namely, equipment for solar energy decen-tralized and grid connected products, bio-mass gassifier, bio-mass or waste boiler, vapour absorption chill-ers, waste heat boiler, waste heat recovery units, unfired heat recovery steam generators, wind turbine, solarcollector and parts thereof, water treatment plants, wind mill and wind mill turbine or engine, other generat-ing sets - wind powered, electrically operated vehicles - motor cars, electrically operated vehicles-lorriesand trucks, electrically operated vehicles - motor cycle and mopeds, and solar cells:

Provided further that for units located in Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram,Nagaland, Sikkim and Tripura, the export obligation shall be 25% of the normal export obligation specifiedabove:


1432

Provided also that where the duty saved is not less than rupees one hundred crores, or where the authoriza-tion is issued to units in the agri export zone as may be notified by the licensing authority or Regional Author-ity, the export obligation shall be fulfilled within a period of twelve years from the date of issue of authoriza-tion in the following proportions, namely :-

S.No. Period from the date of Proportion of total export obligationissue of Authorization

(1) (2) (3)


Provided further that where a sick unit is notified by the Board for Industrial and Financial Reconstruction(BIFR)or where a rehabilitation scheme is announced by the concerned State Government in respect of sick unit forits revival, the export obligation may be fulfilled within time period allowed by the Licensing Authority orRegional Authority as per the rehabilitation package prepared by the operating agency and approved byBIFR or rehabilitation department of State Government . In cases where the time period is not specified inthe rehabilitation package, the export obligation may be fulfilled within the time period allowed by the Licens-ing Authority or Regional Authority which shall not exceed twelve years.

Provided also that where the capital goods are imported by agro units and units in tiny and cottage sector, theexport obligation shall be fixed equivalent to six times the duty saved on the goods imported as may bespecified on the authrization, or for such higher sum as may be fixed by the licensing authority, within a periodof twelve years from the date of issue of the authorization :

Provided also that where the capital goods are imported for technological upgradation as per conditionsspecified in Para 5.8 of the Foreign Trade Policy or by small scale industry units as defined in paragraph 5.2of the Foreign Trade Policy, as the case may be, the export obligation shall be fixed equivalent to six times theduty saved on the goods imported as may be specified on the authorization, or for such higher sum as may befixed by the Licensing Authority or Regional Authority, within a period of eight years from the date of issue ofauthorization subject to the further condition that in the case of Small Scale Industry (SSI) units the landedCost Insurance Freight (CIF) value of such imported capital goods under the scheme shall not exceed rupeesfifty lakhs and total investment in plant and machinery after such imports shall not exceed the SSI limit :

Provided also that spares (including refurbished or reconditioned spares), moulds, dies, jigs, fixtures,tools, refractory for initial lining and catalyst for initial charge, for the existing plant and machinery (importedearlier, under EPCG or otherwise), shall be allowed to be imported under the EPCG scheme subject to anexport obligation equivalent to 50% of the normal export obligation specified above, to be fulfilled in 8 yearsreckoned from the date of issue of the Authorization, subject to the condition that the CIF value of import ofthe said spares etc. shall be limited to 10% of the CIF value of the plant and machinery imported under theEPCG authorization or 10% of the book value of the plant and machinery imported earlier otherwise thanunder EPCG Scheme, as the case may be.



1433

(5) that if the importer does not claim exemption from the additional duty leviable under section 3 of theCustoms Tariff Act, 1975, the additional duty so paid by him shall not be taken for computation of the net dutysaved for the purpose of fixation of export obligation provided the Cenvat credit of additional duty paid hasnot been taken;

(6) that the importer produces within 30 days from the expiry of each block from the date of issue ofauthorization or within such extended period as the Deputy Commissioner of Customs or Assistant Com-missioner of Customs may allow, evidence to the satisfaction of the Deputy Commissioner of Customs orAssistant Commissioner of Customs showing the extent of export obligation fulfilled, and where the exportobligation of any particular block is not fulfilled in terms of the preceding condition, the importer shallwithin three months from the expiry of the said block pay duties of customs equal to an amount which bearsthe same proportion to the duties leviable on the goods, but for the exemption contained herein, which theunfulfilled portion of the export obligation bears to the total export obligation, together with interest at therate of 15% per annum from the date of clearance of the goods;

(7) where the importer fulfills 75% or more of the export obligation as specified in condition (3) (overand above 100% of the average export obligation) within half of the period specified for export obligation asmentioned in condition (3), his balance export obligation shall be condoned and he shall be treated to havefulfilled the entire export obligation;

(8) that the capital goods imported, assembled or manufactured are installed in the importer’s factory orpremises and a certificate from the jurisdictional Deputy Commissioner of Central Excise or AssistantCommissioner of Central Excise, as the case may be, is produced confirming installation and use of capitalgoods in the importer’s factory or premises, within six months from the date of completion of imports orwithin such extended period as the Deputy Commissioner of Customs or Assistant Commissioner of Cus-toms, as the case may be, may allow :


Provided further that if the importer is not registered with central excise or if he is a service provider,as the case may be, he may produce the said certificate of installation and usage issued by an independentChartered Engineer :Provided further that in the case of,-

(i) manufacturer exporter and merchant exporter having supporting manufacturer(s) or vendor(s);(ii) import of irrigation equipment for use in contract farming for export of agricultural products; and(iii) importer rendering services;

the capital goods may be installed at the factory or premises of such other person whose name and addressare endorsed on the authorization referred to in condition (1) and also on the shipping bills and where the bondfor full difference of duty, if necessary, in terms of condition (3) with or without a bank guarantee, as the casemay be, is executed by the importer and such other person binding themselves jointly and severally to fulfillthe export obligation and all other conditions of this notification and to pay duty with interest at the rate of15% per annum in case of default :


1434

Provided also that agro units located in Agri Export Zones or service providers in Agri export Zonesmay move the capital goods within the Agri Export Zones under intimation to the jurisdictional Deputy Com-missioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, subject to thecondition that the importer shall maintain accurate record of such movement;

(9) that the imports and exports are undertaken through sea ports at Bedi (including Rozi-Jamnagar),Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla,Kattupalli (Tamil Nadu), Kolkata, Krishnapatnam and Ennore (Tamil Nadu) and Karaikal (Union territoryof Puducherry), Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, NhavaSheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any ofthe airports at Ahmedabad, Bangalore, Bhubaneswar, Calicut, Chennai, Cochin, Coimbatore, Dabolim (Goa),Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar),Srinagar,Trivandrum, Varanasi and Visakhapatnam 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 andMaliwada), Delhi, Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru,Gauhati, Marripalem Village in Taluk of Edlapadu, District Guntur and Tondiarpet (TNPM), Chennai andIrungattukottai, SIPCOT IndustrialPark, Kattrambakkam Village, Sriperumbudur Taluk, Kanchipuram Dis-trict, Tamil Nadu and Melapakkam Village (Arakkonam Taluk, Vellore District) 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) Talegoan (District Pune), Dhannad Rau (District Indore), Kheda (Pithampur,District Dhar), Patli (Gurgaon), Irugur Village (Tamil Nadu), Thudiyalur (Tamil Nadu), Chettipalayam (TamilNadu) and Veerapandi (Tamil Nadu) 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 notifiedunder section 4 of the Special Economic Zones Act, 2005 (28 of 2005):

Provided that the Commissioner of Customs may, by special order or a public notice and subject tosuch conditions as may be specified by him, permit import and export through any other sea-port, airport,inland container depot or through a land customs station within his jurisdiction.(10) notwithstanding anything contained in condition (5) above, where the Licensing Authority or Re-gional Authority grants extension of block-wise period for any block(s) or overall period of fulfilment ofexport obligation upto a period of two years or regularization of shortfall in export obligation, not exceedingfive percent of such export obligation, the said block-wise period or overall period of export obligation shall beextended or condoned by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, asthe case may be :

Provided that in respect of sick units referred to in the second proviso to condition (3), extension ofoverall period of export obligation shall not be allowed :

Provided further that the Regional Authority may grant further extension in the overall period ofexport obligation upto a period of further two years if the authorization holder pays fifty percent differentialduty on the unfulfilled portion of export obligation and agrees to fulfill other conditions as may be specifiedby the Regional Authority for this purpose;


1435


Provided that at the time of re-export, the goods are identified to the satisfaction of the DeputyCommissioner of Customs or Assistant Commissioner of Customs, as the case may be, to be the same as thegoods which were imported.

Explanation – For the purpose of this notification,-

1. “Authorization” includes “Authorization for Annual Requirement”.

1A. “Capital goods” has the same meaning as assigned to it in Paragraph 9.12 of the Foreign TradePolicy;2. “Export obligation”, -

(1) means obligation on the importer to export to a place outside India, goods manufactured or capable ofbeing manufactured or services rendered by the use of capital goods imported in terms of this notification.The export obligation shall be over and above the average level of exports achieved by the importer in thepreceding three licensing years for the same and similar products within the overall export obligation periodincluding the extended period, if any. Such average shall be the arithmetic mean of export performance in thelast 3 years for the same and similar products.

Provided that upto 50% of the export obligation may also be fulfilled by export of other good(s)manufactured or service(s) provided by the importer or his group company or managed hotel, which has theEPCG authorization subject to the condition that in such cases, additional export obligation imposed shallbe over and above the average exports achieved by the importer or his group company or managed hotel inpreceding three years for both the original and the substitute product(s) / service(s) :

Provided further that in case of export of goods relating to handicraft, handlooms, cottage, tinysector, agriculture, animal husbandry, floriculture, horticulture, pisciculture, viticulture, poultry, sericulture,carpet, coir and jute the importer shall not be required to maintain the average level of exports :

Provided further that in case of export of goods relating to aquaculture(including fisheries), theimporter shall not be required to maintain the average level of exports subject to the condition that EPCGauthorization has been obtained for goods other than fishing trawlers, boats, ships and other similar items.

Provided also that the goods, excepting tools, imported under this notification by the aforesaid sec-tors, shall not be allowed to be transferred for a period of five years from the date of imports even in caseswhere export obligation has been fulfilled. Transfer of capital goods would, however, be permitted within thegroup companies, after fulfillment of export obligation but before five years from the date of imports, underintimation to Regional Authority and jurisdictional Central Excise Authority :

Provided also that the exports made to such countries as notified by the Director General of ForeignTrade, shall not be counted for fixing average level of exports


1436


(2) shall be fulfilled through physical exports and the export proceeds shall be realized in freely convert-ible currency. However the following categories of supplies, shall also be counted towards fulfillment ofexport obligation:




(iii) supply of goods to projects financed by multilateral or bilateral agencies or Funds as notified byDepartment of Economic Affairs (DEA), Ministry of Finance (MOF) under International Competitive Bid-ding (ICB) in accordance with procedures of those agencies or Funds, where legal agreements provide fortender evaluation without including customs duty; supply and installation of goods and equipments (singleresponsibility of turnkey contracts) to projects financed by multilateral or bilateral agencies or Funds asnotified by DEA, MOF under ICB, in accordance with procedures of those agencies/Funds, where bids mayhave been invited and evaluated on the basis of Delivery Duty Paid (DDP) prices for goods manufacturedabroad;(iv) supply of goods to any project or purpose in respect of which the Ministry of Finance, by a notifica-tion, permits import of such goods at zero customs duty and the supply is made under ICB procedure;

(v) supply of goods to mega power projects as provided in sub-clause (ii) of clause (f) of para 8.2 ofForeign Trade Policy;

(vi) Supply of goods to nuclear power projects through competitive bidding as provided in clause (j) ofpara 8.2 of Foreign Trade Policy;

(b) Supply of ITA-1 items to Domestic Tariff Area, provided realization is in free foreign exchange;

(c) Royalty payments received in freely convertible currency and foreign exchange received for Re-search & Development (R&D) services; and

(d) Payments received in rupee terms for port handling services in terms of chapter 9 of the ForeignTrade Policy.

3. “Foreign Trade Policy” means the Foreign Trade Policy 2009-2014 published in the gazette of India,Part II, Section 3, Sub-section (ii) vide notification of the Government of India in the Ministry of Commerceand Industry, No.1/2009-2014 dated the 27th August, 2009 as amended from time to time;4. “Licensing Authority or Regional Authority” means the Director General of Foreign Trade ap-pointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or anofficer authorized by him to grant an authorization under the said Act;5. “Manufacture” has the same meaning as defined in clause (f) of section 2 of the Central Excise Act,


1437

1944 (1 of 1944).Table

S.No. Description of goods

(1) (2)





5. Motor cars, sports utility vehicles/all purpose vehicles.

GENERAL EXEMPTION NO.98O

Exemption to goods when imported into India against a duty credit scrip issued under the StatusHolders Incentive Scheme in accordance with paragraph 3.16 of the Foreign Trade Policy:[Notifn. No. 104/09-Cus., dt.14.9.2009 as amended by 123/09, 92/10, 93/10, 44/11, 7/12, 37/12, 40/12,42/12, 44/12, 50/12, 4/13, 20/13, 24/13, 29/13, 5/15]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts -

(i) capital goods; and(ii) components and spares and parts, for capital goods imported earlier,

when imported into India against a duty credit scrip issued under the Status Holders Incentive Scheme inaccordance with paragraph 3.16 of the Foreign Trade Policy (hereinafter referred to as the said scrip),

1. from the whole of the duty of customs leviable thereon under the First Schedule to the CustomsTariff Act, 1975 (51 of 1975), and

2. from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act,1975,


(1) that the said scrip has been issued by the licensing Authority to a status holder against exports of theproducts of the sectors, namely, leather (excluding finished leather), textiles and jute , handicrafts, engineer-ing (excluding iron and steel, non-ferrous metals in primary or intermediate forms, automobiles and two-wheelers, nuclear reactors and parts and ships,boats and floating structures), plastic and basic chemicals(excluding pharma products) made during 2009-10, 2010-11, 2011-12 or 2012-13 or against exports of theproducts mentioned below made during 2010-11, 2011-12 or 2012-13 namely:-(a) the following chemical and allied products (other than bulk minerals, granite or stones, processedminerals, cement, clinkers and asbestos):-

(i) rubber products covered under headings 4001 to 4010 and 4014 to 4017 of the First Sched-

GENERAL EXEMPTION NO. 98O

1438

ule to the Customs Tariff Act, 1975 (51 of 1975);(ii) paints, varnishes and allied products covered under headings 3208, 3209 and 3210 of the

First Schedule to the Customs Tariff Act, 1975 (51 of 1975);(iii) glass and glassware covered under Chapter 70 of the First Schedule to the Customs Tariff

Act, 1975 (51 of 1975);(iv) plywood and allied products covered under Chapter 44 of the First Schedule to the Cus-

toms Tariff Act, 1975 (51 of 1975);(v) ceramics or refractories covered under Chapter 69 of the First Schedule to the Customs

Tariff Act, 1975 (51 of 1975);(vi) paper, paper boards and paper products covered under Chapter 48 of the First Schedule to

the Customs Tariff Act, 1975 (51 of 1975);(vii) books, publications and printings covered under Chapter 49 of the First Schedule to the

Customs Tariff Act, 1975 (51 of 1975);(viii) animal by-products covered under headings 35030030,05069099, 05079010, 05079020,

05079050, 23011010, 23011090, 96062910, and 96063010 of the First Schedule to theCustoms Tariff Act, 1975 (51 of 1975);

(ix) ossein and gelatine covered under headings 05061039 and 35030020 of the First Schedule tothe Customs Tariff Act, 1975 (51 of 1975);

(x) graphite products covered under headings 3801, 85451100 and 85451900 and explosivescovered under headings 3601, 3602 and 3603 of the First Schedule to the Customs TariffAct, 1975 (51 of 1975);

(xi) products covered under headings 3201, 32029010, 32030010, 3604, 3605, & 38021000 ofthe First Schedule to the Customs Tariff Act, 1975 (51 of 1975);

(b) electronic products.(c) sports goods and toys covered under Chapter 95 and headings 420321, 650610 of the First Sched-ule to the Customs Tariff Act, 1975 (51 of 1975);(d) following engineering products covered under Chapter 72 of the First Schedule to the CustomsTariff Act, 1975 (51 of 1975):-

(i) iron and steel(ii) pipes and tubes(iii) ferro alloysProvided that the exports specified in the Table annexed to the notification shall not be considered

for computation of entitlement under the scheme.

Provided that the exports of the products of the above said sectors, made during 2009-10 and 2010-11 shall only be considered for entitlement under the scheme:(2) that the said scrip has not been issued in violation of the condition contained in the sub-paragraph (5) ofparagraph 2 of notification No.101 of 2009-Customs, dated the 11 th September, 2009 or sub-paragraph (4) ofparagraph 2 of notification No.102 of 2009-Customs, dated the 11th September, 2009 or the second proviso tosub-paragraph (1) of paragraph 2 of notification No. 05 of 2013-Customs, dated the 18th February, 2013 orsub-paragraph (3) of paragraph 2 of notification No. 22 of 2013-Customs, dated the 18th April, 2013 or firstproviso to sub-paragraph (1) of paragraph 2 of notification No. 23 of 2013-Customs, dated the 18th April,2013, as the case may be.

Provided further that the said scrip has not been issued in violation of the condition contained inPara 2(4) of notification No. 102/09-Cus dated the 11th September, 2009 pertaining to Zero Duty EPCG


1439

scheme or Para 2(5) of notification No.101/09-Cus. dated the 11th September, 2009 pertaining to Zero DutyEPCG scheme for Common Service Providers, as the case may be.

Provided further that, the exports specified in the Table annexed to the notification shall not beconsidered for computation of entitlement under the scheme;

(3) that the said scrip is produced before the proper officer of customs at the time of clearance for debitof the duties leviable on the goods and the proper officer of customs taking into account the debits alreadymade under this exemption and debits made under the notification No. 33 of 2012-Central Excise, dated the9th July, 2012, shall debit the duties leviable on the goods, but for this exemption;

(4) that the said scrip shall be non-transferable and shall be used for import of capital goods relating tothe sectors specified in condition (1):

Provided that the capital goods specified in appendix 37B of the Hand Book of Procedures volume 1shall not be allowed for import:

Provided further that the import of components and spares and parts against the said scrip shall beallowed only -

(i) in respect of capital goods imported earlier,(ii) in respect of capital goods imported relating to the sectors specified in condition (1), and(iii) upto ten per cent. of the duty credit amount in the said scrip originally issued:

Provided also that the said scrip shall be transferable amongst the status holders subject to the conditionthat the transferee status holder is a manufacturer and such transfer is endorsed by the Regional Authority,during the period of validity of the said scrip, mentioning the sectors for which the transferee has manufacturingfacility and for which the transfer is granted:

Provided also that the transfer of the said scrip shall be allowed within the group company as defined inpara 9.28 of the Foreign Trade Policy, if the said group company is a manufacturer and such transfer isendorsed by the Regional Authority during the period of validity of the said scrip, mentioning the sectors forwhich the transferee has manufacturing facility and for whichthe transfer is granted

Provided also that upon such transfer, the validity of the said scrip shall remain unchanged.

(5) that the capital goods imported against the said scrip shall be subject to actual user condition and theimporter at the time of clearance of the said capital goods, shall furnish an undertaking to this effect to theDeputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that in caseof non compliance of the said condition, he shall pay on demand an amount equal to the duty leviable, but forthe exemption contained herein together with interest at the rate of fifteen percent per annum from the dateof clearance of the said materials;

(5A) that the components and spares and parts, for capital goods imported earlier, imported against thesaid scrip shall be meant for use in the capital goods already imported and subject to actual user condition andthe importer at the time of clearance of the said components and spares and parts, shall furnish an undertak-ing to this effect to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as thecase may be, that in case of non compliance of the said condition, he shall pay on demand an amount equal tothe duty leviable, but for the exemption contained herein together with interest at the rate of fifteen percent.per annum from the date of clearance of the said materials.


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(6) 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, Kattupalli(Tamil Nadu), Kolkata, Krishnapatnam and Ennore (Tamil Nadu) and Karaikal (Union territory ofPuducherry), Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra, Nagapattinam, Nhava Sheva,Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of theairports at Ahmedabad, Bangalore, Bhubaneswar, Calicut, Chennai, Cochin, Coimbatore, Dabolim (Goa),Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar,Trivandrum , Varanasi and Visakhapatnam 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,Marripalem Village in Taluk of Edlapadu, District Guntur and Tondiarpet (TNPM), Chennai and Irungattukottai,SIPCOT Industrial Park, Kattrambakkam Village, Sriperumbudur Taluk, Kanchipuram District, Tamil Naduand Melapakkam Village (Arakkonam Taluk, Vellore District) 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) Talegoan (District Pune), Dhannad Rau (District Indore), Kheda (Pithampur, DistrictDhar), Patli (Gurgaon), Irugur Village (Tamil Nadu), Thudiyalur (Tamil Nadu), Chettipalayam (Tamil Nadu)and Veerapandi (Tamil Nadu) (Tamil Nadu) and Marripalem Village in Taluk of Edlapadu, District Guntur orthrough 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 EconomicZones Act, 2005 (28 of 2005):

Provided that the Commissioner of Customs may with in the jurisdiction , by special order, or by aPublic Notice, and subject to such conditions as may be specified by him, permits import and export from anyother seaport/airport/inland container depot or through any land customs station;(7) that where the importer does not claim exemption from the additional duty of customs leviable undersection 3 of the said Customs Tariff Act, he shall be deemed not to have availed the exemption from the saidduty for the purpose of calculation of the said additional duty of customs;(8) that the importer shall be entitled to avail of the drawback or CENVAT credit of additional dutyleviable under section 3 of the said Customs Tariff Act against the amount debited in the said scrip.

TableS.No. Description

(1) (2)

1. EOUs / EHTPs / BTPs who are availing direct tax benefits or exemption2. Export of imported goods covered under para 2.35 of the FTP .3. Exports through transhipment, meaning thereby that exports originating in third country but tran-

shipped through India4. Deemed exports5 Exports made by Special Economic Zone units or Special Economic Zone products

exported through Domestic Tariff Area units6 Export of items, which are restricted or prohibited for export under Schedule-2 of Export Policy in

ITC (HS).


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7 The exports made by the Status Holders during a particular year, if benefits are availed underTechnology Upgradation Fund scheme (TUFS) of Ministry of Textiles in that year.

Explanation, - For the purposes of this notification,-

(i) “Capital goods” means any plant, machinery, equipment or accessories required for manufacture orproduction, either directly or indirectly, of goods or for rendering services, including those required forreplacement, modernization, technological up gradation or expansion. It also includes packaging machineryand equipment, refractories for initial lining, refrigeration equipment, power generating sets, machine tools,catalysts for initial charge, equipment and instruments for testing, research and development, quality andpollution control. Capital goods may be for use in manufacturing, mining, agriculture, aquaculture, animalhusbandry, floriculture, horticulture, pisciculture, poultry, sericulture and viticulture as well as for use in ser-vices sector.

(ia) “Component” means one of the parts of a sub-assembly or assembly of which a manufacturedproduct is made up and into which it may be resolved and it includes an accessory or attachment to anothercomponent.(ib) “Spares” means a part or a sub-assembly or assembly for substitution, that is ready to replace anidentical or similar part or sub-assembly or assembly and it includes a component or an accessory.(ic) “Part” means an element of a sub-assembly or assembly not normally useful by itself, and notamenable to further disassembly for maintenance purposes which may be a component, spare or an acces-sory.

(ii) “Foreign Trade Policy” means the Foreign Trade Policy 2009-2014, published by the Governmentof India in the Ministry of Commerce and Industry vide notification No.01/2009-14, dated the 27th August,2009, as amended from time to time.

(iii) “Licensing Authority or Regional Authority " means the Director General of Foreign Trade appointedunder section 6 of the Foreign Trade (Development and Regulation ) Act,1992 (22 of 1992) or an officerauthorised by him to grant a licence under the said Act.

GENERAL EXEMPTION NO.98P

Exemption to goods when imported into India, from whole of the duty of customs leviable thereonunder the First Schedule to the Customs Tariff Act, 1975 :[Notifn. No. 112/09-Cus., dt.29.9.2009 as amended by 123/09, 93/10, 40/11, 37/12, 40/12, 50/12, 4/13, 20/13, 5/15]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts materials required for the manufacture of the final goods when imported into India, from whole ofthe duty of customs leviable thereon under 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 respec-tively under sections 3, 8B and 9A of the said Customs Tariff Act, except to the extent specified in para 2 tothis notification, subject to the following conditions, namely:-

(i) that the importer has been granted Advance Authorisation for deemed export by the Regional Au-thority in terms of Paragraph 4.1.3(iii) of the Foreign Trade Policy permitting import of the said materials

GENERAL EXEMPTION NO. 98P

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(hereinafter referred to as the said authorisation);

(ii) that the said authorisation is produced before the proper officer of customs at the time of clearancefor debit;

(iii) that the said authorisation contains endorsements specifying, inter alia,-

(a) the description, quantity and value of materials allowed to be imported under the saidauthorisation; and

(b) the description and quantity of final goods to be manufactured out of, or with, the importedmaterials;

(iv) that in respect of imports made before the discharge of export obligation, the importer at the time ofclearance of the imported materials executes a bond with such surety or security, in such form and for suchsum as may be specified by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, asthe case may be, binding himself to pay on demand an amount equal to the duty leviable, but for the exemptioncontained herein, on the imported materials in respect of which the conditions specified in this notification arenot complied with, together with interest at the rate of fifteen percent per annum from the date of clearanceof the said materials;

(v) that in respect of imports made after the discharge of export obligation, if facility under rule 18 orsub-rule (2) of rule 19 of the Central Excise Rules, 2002 or the CENVAT Credit under CENVAT CreditRules, 2004 has been availed, then the importer shall, at the time of clearance of the imported materialsfurnish a bond to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the casemay be, binding himself, to use the imported materials in his factory or in the factory of his supportingmanufacturer for the manufacture of dutiable goods and to submit a certificate, from the jurisdictional CentralExcise officer or from a specified chartered accountant within six months from the date of clearance of thesaid materials, that the imported materials have been so used:

Provided further that if the importer pays additional duty of customs leviable on the imported materials but forthe exemption contained herein, then the imported materials may be cleared without furnishing a bond speci-fied in this condition and the additional duty of customs so paid shall be eligible for availing CENVAT Creditunder the CENVAT Credit Rules, 2004;

(vi) that in respect of imports made after the discharge of export obligation, and if facility under rule 18 orsub-rule 2 of rule 19 of the Central Excise Rules, 2002 or the CENVAT credit under CENVAT Credit Rules,2004 has not been availed and the importer furnishes proof to this effect to the satisfaction of the DeputyCommissioner of Customs or the Assistant Commissioner of Customs, as the case may be, then the importedmaterials may be cleared without furnishing a bond specified in condition (v);

(vii) 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, Kattupalli(Tamil Nadu), Kolkata, Krishnapatnam and Ennore (Tamil Nadu) and Karaikal (Union territory of Puducherry),Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha,Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports atAhmedabad, Bangalore, Bhubaneswar, Calicut, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi,


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Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar,Trivandrum, Varanasi and Visakhapatnam 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,Marripalem Village in Taluk of Edlapadu, District Guntur and Tondiarpet (TNPM), Chennai andIrungattukottai, SIPCOT Industrial Park, Kattrambakkam Village, Sriperumbudur Taluk, Kanchipuram Dis-trict, Tamil Nadu and Melapakkam Village (Arakkonam Taluk, Vellore District) 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) Talegoan (District Pune), Dhannad Rau (District Indore), Kheda (Pithampur,District Dhar), Patli (Gurgaon), Irugur Village (Tamil Nadu), Thudiyalur (Tamil Nadu), Chettipalayam(Tamil Nadu) and Veerapandi (Tamil Nadu) (Tamil Nadu) and Marripalem Village in Taluk of Edlapadu,District Guntur 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 theSpecial Economic Zones Act, 2005 (28 of 2005):

Provided that the Commissioner of Customs may within the jurisdiction , by special order, or by apublic notice, and subject to such conditions as may be specified by him, permit import and export from anyother seaport/airport/inland container depot or through any land customs station;

(viii) that the export obligation as specified in the said authorization (both in value and quantity terms) isdischarged within the period specified in the said authorization or within such extended period as may begranted by the Regional Authority by supplying final goods manufactured in India which are specified in thesaid authorization;

goods to the satisfaction of the said Deputy Commissioner of Customs or Assistant Commissioner of Cus-toms, as the case may be, within a period of sixty days from the expiry of the period allowed for fulfilmentof obligation or within such extended period as the Deputy Commissioner of Customs or Assistant Commis-sioner of Customs, as the case may be, may allow;

(x) that the said authorisation shall not be transferred and the said materials shall not be transferred orsold :

Provided that the said materials may be transferred to a job worker for processing subject to com-plying with the conditions specified in the relevant Central Excise notifications permitting transfer of mate-rials for job work:

Provided further that no such transfer for purposes of job work shall be effected to the units locatedin areas eligible for area based exemptions from the levy of excise duty in terms of notification Nos. 49/03-CE and 50/03-CE both dated 10th June,2003, 32/99-CE dated 8th July,1999, 33/99-CE dated 8th July,1999,8/04-CE dated 21stJanuary,2004, 20/07-CE dated 25th April,2007,56/02-CE dated 14th November, 2002,57/02-CE dated 14th November,2002, 71/03-CE dated 9th September,2003, 56/03-CE dated 25th June,2003 and39/01-CE dated 31st July, 2001;


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(xi) that components and parts, required for manufacture of final goods which are wholly exempted frompayment of excise duty when removed from the factory of production, may be taken directly from the port ofimport to the project site as per the procedures and limitations, if any, laid down by the Board in this regardsubject to the condition that description and quantity of such components and parts and the address of the sitehave been specified in the said authorization.

2. The exemption from safeguard duty and anti-dumping duty shall not be available in respect ofmaterials required for final goods specified in paragraph 1 which are covered under sub-clauses (a), (b), (c),(i) and (j) of clause (iii) of the explanation to this notification.

3. The materials required for the manufacture of the final goods, when imported into India and sup-plied to Export Oriented Unit, Electronic Hardware Technology Park and Software Technology Park, shallbe exempted from the whole of the duty of customs leviable thereon, under the First Schedule to the saidCustoms Tariff Act and from the whole of additional duty, safeguard duty and anti-dumping duty leviablethereon, respectively, under sections 3, 8B and 9A of the said Customs Tariff Act subject to the conditionsmentioned in Paragraph 1.

Explanation, – For the purposes of this notification,-(i) “Dutiable goods” means excisable goods which are not exempt from central excise duty and whichare not chargeable to ‘nil’ rate of central excise duty;

(ii) “Electronic Hardware Technology Parks”, “Export Oriented Units” and “Software Technology Parks”have the same meaning as assigned to them in paragraph 9.23, 9.24 and 9.60 of the Foreign Trade Policyrespectively;

(iii) “Final goods” means -

(a) supply of goods against the Advance Authorisation scheme or the Advance Authorisation forAnnual Requirement or the Duty Free Import Authorisation Scheme or the Duty Free Re-plenishment Certificate under the Duty Exemption/Remission Scheme;

(b) supply of goods made to Export Oriented Units or Software Technology Parks or ElectronicHardware Technology Parks ;

(c) supply of goods to the holders of licence under Chapter 5 of the Foreign Trade Policy;

(d) supply of goods made to projects financed by multilateral or bilateral Agencies or funds asnotified by the Government of India in the Ministry of Finance (Department of EconomicAffairs) under the International Competitive Bidding in accordance with the procedures ofthose Agencies or funds where the agreement provides for tender evaluation without includ-ing the duties of customs;

(e) supply and installation of goods and equipment (single responsibility of turnkey contracts)to projects financed by multilateral or bilateral agencies or funds as notified by the Govern-ment of India in the Ministry of Finance (Department of Economic Affairs) under interna-tional competitive bidding in accordance with the procedures of those agencies or funds,where the bids have been invited and evaluated on the basis of Delivered Duty Paid (DDP)


1445

prices for the goods manufactured abroad;

(f) supply of capital goods either in assembled or unassembled or disassembled condition includ-ing plant, machinery, accessories, tools, dies and such other goods used for installation pur-poses till the stage of commercial production and spares to the extent of ten per cent. of theFree on Rail value of such capital goods for fertilizer plants where such supplies are madeafter following the procedure of International Competitive Bidding without including theduties of customs;

(g) supply of goods to any project or purpose in respect of which the Government of India inthe Ministry of Finance, by notification, permits the import of such goods at Zero duty ofcustoms and where such supplies are made after following the procedure of InternationalCompetitive Bidding without including the duties of customs;

(h) supply of goods to power and refinery projects not covered under sub-clause (g) where suchsupplies are made after following the procedure of International Competitive Bidding with-out including the duties of customs;

(i) supply of Marine Freight Containers by Export Oriented Units namely, Domestic freightcontainers manufacturers where such containers are exported out of India within a period ofsix months or such further period as may be permitted by the Deputy Commissioner ofCustoms or the Assistant Commissioner of Customs, as the case may be;

(j) supply of goods made to projects funded by United Nation Agencies;

(k) supply of goods to nuclear power projects where such supply is made after following theprocedure of Competitive Bidding;

(iv) “Foreign Trade Policy” means the Foreign Trade Policy 2009-2014, published by the Government ofIndia in the Ministry of Commerce and Industry vide notification No.1 /2009-2014, dated the 27th August2009 as amended from time to time;

(v) “Licensing Authority” means the Director General of Foreign Trade appointed under section 6 of theForeign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorized by him to granta licence under the said Act;(vi) “Materials” means -

(a) raw materials, components, intermediates, consumables, catalysts and parts which are required formanufacture of final goods;

(b) mandatory spares within a value limit of ten per cent. of the value of the licence which are requiredto be exported along with the final goods;

(c) fuel required for manufacture of final goods;

(d) packaging materials required for packing of final goods;


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(vii) “Regional Authority” has the same meaning as assigned to it in paragraph 9.49.1 of the ForeignTrade Policy; and(viii) “Specified Chartered Accountant” means a statutory auditor or a Chartered Accountant who certi-fies the importer’s financial records under the Companies Act, 1956 (1 of 1956) or the Income Tax Act, 1961( 43 of 1961) or the Sales Tax or the Value Added Tax laws of the State Government.

GENERAL EXEMPTION NO.98Q

Exemption to goods when imported into India from Bangladesh:[Notifn. No. 60/11-Cus., dt.14.7.2011 as amended by 2/15]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of1962), the Central Government, being satisfied that it is necessary in the public interest so to do, herebyexempts the goods specified in column (2) of the Table annexed hereto when imported into India fromBangladesh from the whole of the duty of customs leviable thereon under the First Schedule to the CustomsTariff Act, 1975 (51 of 1975), subject to the following conditions, namely:--

(i) the importer produces evidence to the satisfaction of the Assistant Commissioner of Customs orDeputy Commissioner of Customs, as the case may be, that such goods have, in fact, been locally producedin Bangladesh and are imported into India through the land route from Balat, Kalaichar or Srinagar (Tripura)land customs station for sale in Balat, Kalaichar or Srinagar (Tripura) border haats, as the case may be;

(ii) this notification shall not apply to goods having an estimated total value in excess of US$ 50,brought into India from such border haat by a person during a day;

(iii) this notification shall not be applicable to tobacco products or products containing tobacco oralcohol.

Table

S. No. Description of goods

(1) (2)

1. Locally produced vegetables, food items, fruits, spices2. Minor local forest produce, for example bamboo, bamboo grass and broom stick but excluding

timber3. Products of local cottage industry like gamcha, lungi4. Small locally produced agriculture household implements, for example dao, plough, axe, spade,

chisel5. Locally produced garments, melamine products, processed food items, fruit juice

Explanation.- For the purposes of this notification, the term “locally produced” shall mean produce of theconcerned border district.

GENERAL EXEMPTION NO. 98Q

1311 GENERAL EXEMPTION NO.96 SINGAPORE - CBIC

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