G.S.R. 280 (E). In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts materials imported into India against an Advance License for Annual Requirement (hereinafter referred to as the said license), with Actual User Condition in terms of Paragraph 4.1.7A of the Export and Import Policy from the whole of the duty of customs leviable thereon which is specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, subject to the following conditions, namely,-

(1) that the said licence shall be issued to a manufacturer exporter or merchant exporter holding Export House, Trading House, Star Trading House or Super Star Trading House Certificate issued by the Licensing Authority.

(2) that the said licence is issued for an export product group specifying the Cost Insurance Freight Value (CIF value) of import permitted against it and the Free on Board Value (FOB value) of export obligation to be achieved. The said licence shall be valid for import of any input required for the manufacture of export product, which is covered under the said export product group specified in the Hand Book of Procedure Volume II of Export and Import Policy;

(3) that an Actual User Duty Exemption Entitlement Certificate (hereinafter referred to as the said certificate) is issued to the holder of the said licence by the Licensing Authority in the form specified in the Schedule annexed to this notification. At the time of import, the full details of value, quantity, technical characteristics and other particulars, of the inputs imported against the said licence shall be entered in part "C" of the said certificate by the proper officer;

(4) that the importer at the time of clearance of the imported materials executes a bond with such surety or security and in such form and for such sum as may be specified by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, binding himself to pay on demand an amount equal to the duty leviable, but for the exemption, on the imported materials in respect of which the conditions specified in this notification have not been compiled with, together with interest at the rate of fifteen per cent per annum from the date of clearance of the said materials:

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

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

(6) that the imports and exports are undertaken through sea ports at Mumbai, Calcutta, Cochin, Magdalla, Kakinada, Kandia, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep, Pipavav, Sikka, Tuticorin, Visakhapatnam, Dahej, Nagapattinam , Okha, Mundhra, Bedi (including Rozi –Jamnagar), Muldwarka, Porbander, Dharamtar Vadimar , Haldia (Haldia Dock complex of Kolkata port) and Krishnapatnam [OLDand Haldia (Halida Dock Complex of Kolkata Port)] [OLDand Vadinar)] or through any of the airports at Ahmedabad, Bangalore, Bhubaneshwar, Mumbai, Kolkata, Coimbatore, Delhi, Hyderabad, Jaipur, Madras, Srinagar, Trivandrum, Varanasi, Nagpur, Cochin, Rajasansi (Amritsar), Lucknow (Amausi) Indore and Dabolim (Goa) [OLDand Indore)] [OLDRajasansi (Amritsar) and Lucknow (Amausi)] or through any of the Inland Container Depots at Agra, Bangalore, Coimbatore, Delhi, Faridabad, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Kanpur, Ludhiana, Moradabad, Nagpur, Pimpri (Pune), Pitampur (Indore), Surat, Tirupur, Varanasi, Nasik, Rudrapur (Nainital), Dighi (Pune), Vadodara, Daulatabad (Wanjarwadi and Maliwada), Waluj (Aurangabad), Anaparthy (Andhra Pradesh), Salem, Malanpur, Singanalur, Jodhpur, Kota, Udaipur, Ahmedabad, Bhiwadi, Madurai, Garhi Harsaru, Bhilwara, Pondichery, Bhatinda, Dappar (Dera Bassi), Chheharata (Amritsar), Karur, Miraj, Rewari, Bhusawal, Jamshedpur, Surajpur, Dadri, Tuticorin, Kundli, Bhadohi, Raipur , Mandideep (District Raisen), Durgapur (Export Promotion Industrial Park), Babarpur and Loni (District Ghaziabad) [OLDDurgapur ( Export Promotion Industrial Park ) and Babarpur] or through the Land Customs Station at Ranaghat, Singhabad, Raxaul, Jogbani, Nautanva(Sonauli), Petrapole, Mahadipur, Nepalganj Road, Dawki, Agartala, Sutarkhandi, Amritsar Rail Cargo, Attari Road, Hilli, Ghojadanga and Changrabandha [OLDAmritsar Rail Cargo and Attari Road] or Special Economic Zone as specified in the notification issued under section 76A of the Customs Act 1962 (52 of 1962).

(Condition (6) has been substituted vide CUS NTF NO. 19/2009 DATE 24/02/2009)

(Condition (6) has been substituted vide CUS NTF NO. 63/2008 DATE 08/05/2008)

(Condition (6) has been amended vide CUS NTF NO. 116/2007 DATE 30/11/2007)

(Condition (6) has been amended vide CUS NTF NO. 63/2007 DATE 04/05/2007)

(Condition (6) has been amended vide CUS NTF NO. 41/2006 DATE 05/05/2006)

(Condition (6) has been amended vide CUS NTF NO. 97/2005 DATE 17/11/2005)

(Condition (6) has been amended vide CUS NTF NO. 77/2005 DATE 22/08/2005)

(Condition (6) has been amended vide CUS NTF NO. 46/2005 DATE 17/05/2005)

(Condition (6) has been amended vide CUS NTF NO. 63/2004 DATE 14/05/2004)

(Condition (6) has been amended vide Cus Ntf No.84/2003 Date 27/05/2003)

Provided that the Commissioner of Customs may by special order or a public notice and subject to such conditions as may be specified by him, permit import and export through any other sea port, airport, or Inland Container Depot or through a land customs station;

(Second proviso has been omitted vide CUS NTF NO. 97/2003 DATE 25/06/2003)

[OLD Provided further that where the goods are delivered for export through any Inland Container Depot specified in this condition, its export shall only be permitted through the sea-ports at Mumbai, Nhava Sheva, Kandla, Chennai or Kolkata.]

(Second proviso has been inserted vide Cus Ntf No.84/2003 Date 27/05/2003)

(7) that sourcing of the imported materials from Private Bonded Warehouses set up under paragraph 2.28 of the Export and Import Policy would be allowed;

(8) that the export obligation is discharged within eighteen months from the date of issue of the said licence or within such extended period as may be granted by the Licensing Authority by exporting resultant products manufactured in India. At the time of export, the full details of value, quantity, technical characteristics, and other particulars, of the resultant export product (hereinafter referred to as resultant product) shall be entered in part "E" of the said certificate by the proper officer;

Provided that an Annual Advance Intermediate Licence holder shall discharge export obligation by supplying the resultant export product to the ultimate exporter in terms of Para 4.1.7A of the Export and Import Policy.

(condition (8) has been substituted vide CUS NTF NO. 29/2004 DATE 28/01/2004)

(9) that the importer produces evidence of discharge of export obligation to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, within a period of 30 days of the expiry of period allowed for fulfilment of export obligation, or within such extended period as the said Deputy Commissioner of Customs or Assistant Commissioner of Customs], may allow;

(10) that the exempt materials shall not be disposed of or utilised in any manner except for utilisation in discharge of export obligation or for replenishment of such materials and the materials so replenished shall not be sold or transferred to any other person;

(11) that in relation to the said license issued to a manufacturer exporter or merchant exporter,-

(a) the name and address of the supporting manufacturer is specified in the said licence and the said certificate and the bond required to be executed by the importer in terms of condition (4) shall be executed jointly by the Merchant Exporter and the supporting manufacturer binding themselves jointly and severally to comply with the conditions specified in this notification; and

(b) exempt materials are utilised in the factory of such supporting manufacturer in terms of condition (10).

2. In a case of default in export obligation, when the duty on goods is paid to regularise the default, the amount of interest paid by the importer shall not exceed the amount of duty if such regularisation has been dealt in terms of Public Notice of the Government of India in the Ministry of Commerce No. 22 (RE-2013)/2009-2014 dated the 12th August, 2013.

(In the notification, paragraph 2 has been inserted CUS NTF NO. 46/2013 DATE 26/09/2013)

Explanation : In this notification, -

(i) "Export and Import Policy" means the Export and Import Policy 2002-2007, published vide notification of the Government of India in the Ministry of Commerce and Industry No. 1/2003, dated the 31st March, 2003, as amended from time to time;

(ii) "Licensing Authority" means the Director General of Foreign Trade appointed under section 6 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) or an officer authorised by him to grant a licence under the said Act;

(iii) "materials" means, -

(a) raw materials, components, intermediates, consumables, computer software and parts required for manufacture of resultant product specified in Part ” E” of the said certificate by the proper officer;

(b) mandatory spares within a value limit of 10% of the value of the licence which are required to be exported along with the resultant product; and

(c) packaging materials required for packing of resultant product.
 

(This consists of ........................... Pages) Sl. No................................(IMP) Date of issue.................................Port of Registration ............................... Issued to.............................. (name and full address of the licence). Materials imported against licence No................dated, .............issued by...........to the above licencee would be eligible for exemption from customs duties subject to the conditions specified in the notification of the Government of India, Ministry of Finance and Company Affairs, Department of Revenue No.......... Customs, dated the..................... Bond with security/surety in terms of the said notification shall be executed before clearance of the goods from the Customs.
 

Signature
Seal of Licensing Authority
Date :

Name and addresses of the factories where the resultant products for export are manufactured.
 

Name and addresses of factories where the ancillaries to the Resultant products for export are manufactured.
 

Signature
Seal of licensing authority
Date :

(a) MATERIALS TO BE IMPORTED UNDER THIS CERTIFICATE


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





Duties paid on materials in respect of which the conditions of said notification are not compiled with.




(EXPORT) (This consists of ......................................pages) Sl. No......................(EXP) date of issue.............................................. Port of Registration......................................................... .......... Issued to............................................................................. .......... .... ..... ..................... ............................ (name and full address of the licencee).

Materials imported against Licence No....... ......dated........... issued by...............to the above licencee would be eligible for exemption from customs duties subject to the conditions specified in the notification of the Government of India, Ministry of Finance, Department of Revenue No............Customs, dated the . ... ..... .........

A Bond with surety/security in terms of the said notification, shall be executed before clearance of the goods from the Customs.










Details of Imports made :

Details of Exports made :

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

2. I/We hereby declare that no benefit under rule ___________ and Rule _______ of Central Excise Rules,2002 has been availed in respect of exports made under this DEEC.

Signature .........................................
Name of the Signatory........................
Designation.......................................
Full Address......................................
Certificate of Chartered Account/Cost Accountant

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

Signature..................................
Seal.........................................
Membership No.........................

F.NO.605/01/2003-DBK
 

(ALOK JHA)
UNDER SECRETARY TO THE GOVT. OF INDIA

(Please refer CUS CIR NO. 54/2003 DATE 25/06/2003)

(Please refer CUS CIR NO.25/2003 DATE 01/04/2003)