Import Supply No. 101/2003
Export Supply No.101/2003
PUBLIC NOTICE NO. 17/2003, Dt.21/02/2003

Complaints regarding delay in clearance of trade samples and donations-reg.

In view of the complaints regarding delay in clearance of trade samples and donations, it is hereby clarified that these clearances are governed by Notn.Nos. 154/94-Customs. dated 13.7.1994. The full text of the said notifications are enclosed as Annexures.

It has been observed that the importers seeking duty free clearances under these notifications are unaware of the provisions therein and hence do not respond positively. The information and undertaking sought under the said notification are not produced in time which results in delay in clearance of the said consignments.

Importers seeking exemption from customs duty under these notifications are directed to comply with the conditions/ provisions laid down under these notifications prior to the import or immediately on receipt of an intimation from Post or Customs. An early compliance could facilitate the clearance of consignments of samples and donations expeditiously.

Sd/-
(A.HUSSAIN)
COMMISSIONE OF CUSTOMS (IMPORT)

Attested by

(A.K. GOSWAMI)
DY. COMMISSIONER OF CUSTOMS
APPRAISING (GENERAL)

F.No. S/22-25/2002(PAS) Date: 19.02.2003

ANNEXURE – I

GENERAL EXEMPTION NO. 42

8. SAMPLES

GENERAL EXEMPTION NO. 42

Exemption to samples, price lists, commercial samples or prototypes imported as baggage or by post, Air, Courier service and prototypes of engineering goods imported as samples for executing or securing export order.-

In exercise of the posers 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 goods (hereinafter referred to as the said goods) of the description specified in column (2) of the Table hereto annexed and falling within the First Schedule to the Customs Tariff Act, 1975(51 of 1975), when inported into India, from the whole of the duty of customs leviable thereon, which is specified in the said Schedule and from the whole of the additional duty levaible thereon under section 3 of the second mentioned Act subject to the conditions, if any, laid down in the corresponding entry in column (3) thereof.

Sl. No.	Description of goods	Conditions
(1)	(2)	(3)
1.	Samples	The sample are exempt form import duties under and in accordance with the International Convention to facilitate the importation of Commercial Samples and Advertising material drawn up at Geneva and dated the 7th day of November, 1952.
2.	Price lists	The price lists are supplied free of charge and are exempt from import duties under and in accordance with the Convention mentioned against S.No. 1 above
3.	Commercial samples	(i) The said goods have been imported as personal baggage by bona fide commercial travellers or businessmen or imported by post or by air (ii) The importer produces his Import Export Code Number at the time of importation; (iii) The said goods are clearly marked as samples; (iv) The import of the said goods does not exceed Rs. 60,000 in value or 15 units in number, within a period of twelve months; and (v) The importer at the time of importation- (A) declares that- (a) the samples have been imported into India solely for the purpose of being shown in India for the guidance of exporters or for securing or executing an export order; (b) the total import value of samples does not exceed Rs. 60,000 or 15 units in number , within the period of the last twelve months; and (B) produces an undertaking to the [Assistant Commissioner of Customs or Deputy Commissioner of Customs] to pay the duty leviable on the said goods but for the exemption contained herein, if the declaration under clause(A) is found to be false.
4.	Prototypes of engineering goods imported as samples for executing or for use in connection with securing export orders	(i) The importer produces a certificate from the Export Promotion Council concerned with the particular export or the Trade Development Authority to the effect that the samples are required for executing or for use in connection with securing export orders; (ii) Where the value of a sample does not exceed Rupees ten thousand the same shall be rendered useless as merchandise by any suitable process and where this is not possible they are re-exported within a period of nine months of import or such extended period as may be allowed by the [Assistant Commissioner of Customs or Deputy Commissioner of Customs]; (iii) Where the value of a sample exceeds Rupees ten thousand the same shall be re-exported within a period of nin months of import or such extended period as may be allowed by the [Assistant Commissioner of Customs or Deputy Commissioner of Customs]; and (iv) The importer shall execute a bond in such form and for such sum and with such surety as may be prescribed by the Assistant Commissioner of Customs, for the purpose of enforcing conditions (ii) and (iii), as the case may be.
5.	Bona fide commercial samples and prototypes	(i) The said goods have been imported by post or in an aircraft, or by courier service; (ii) The value of the said samples or prototypes does not exceed rupees five thousand; and (iii) The said goods have been supplied free of charge. Explanation .- For the purpose of condition (ii), postal charges or the air-freight shall not be taken into account for determining the value limit of rupees five thousand.

(Notification No. 154/94-Cus., dated 13.7.1994 as amended by Notifications No. 100/95-Cus., dated 26-5-1995; No. 101/95-Cus., dated 26-5-1995; No. 75/97-Cus., dated 14-10-1997 and No. 86/99-Cus., dated 6-7-1999.]

GENERAL EXEMPTION NO. 43

[OMITTED]

GENERAL EXEMPTION NO. 35

Explantion .- “Bhopal Gas Leak Disaster” means the occurrence on the 2nd and 3rd days of December, 1984, which involved the release of highly noxious and abnormally dangerous gas from a plant in Bhopal (being a plant of the Union Carbide India Limited, a subsidiary of the Union Carbide Corporation, U.S.A.) and which resulted in loss of life and damage to property on an extensive scale.

4.	(i) Gift goods and supplies and equipment imported by Co-operative for American Relief Everywhere, Incorporated, (hereinafter referred to as CARE) or its distributing organisations, approved by the Government of India, under the Agreement between the President of India and CARE; and (ii) Supplies and equipment for the official use of the officers of CARE	The importer, at the time of import, gives an undertaking that the supplies and the equipment when no longer required for the purposes for which they were imported, will be exported out of India and that the imported supplies and equipment are not meant for the personal use of the officers of CARE or its distributing organisations and, further, that any of the gift goods, supplies or equipment shall not be passed on to a third party by way of sale or otherwise in contravention of the said Agreement.
5.	Goods imported into India for the purposes of relief and rehabilitation	(i) The said goods are imported into India in accordance with the terms of any agreement in force between the Government of India and any foreign Government providing for duty-free entry of such goods into India; and (ii) The goods so imported shall not be sold or otherwise disposed of in India except with the prior approval of, and on fulfilment of such conditions as may be imposed by, the Government in this behalf,
6.	Articles of food and edible material	The goods are supplied as free gifts to the Government of India, either by the agencies approved by the United Nations Organisations or by the European Economic Community
7.	(i) Articles donated to the Government of India for use of defence personnel (ii) Articles including bullion donated to the National Defence Fund
8.	Goods, gifted free of cost under a bilateral agreement between the Government of India and a Foreign Government

[Notification No. 148/94-Customs, dated 13-7-1994 as amended by Notifications No. 173/94-Customs, dated 6-10-1994; No. 101/95-Customs, dated 26-5-1995 and No. 48/96-Customs, dated 23-7-1996]

DEPARTMENTAL CLARIFICATIONS

Gifted food consignment (CARE/WFP) declared damaged and categorised unfit for human consumption but fit for poultry/animal feed- Mode of Disposal.- I am directed to refer to this Departments’ Circular F.No. 462/36/80-Customs V dated 17-2-1983, and to state that in the issue regarding disposal of damaged foodstuff imported under the Indo-Care Agreement and World Food Programme assistance for supplementary Nutrition Programme in India, which are found unfit for human comsumption, it ahs been reiterated by the Board that the benefit of General Exemption Notification No. 148/94-Customs will also be applicable to consignments of damaged foodstuffs, which are not fit for human consumption but are fit for animal comsumption, irrespective of the fact whether these consignments were damaged either prior to their clearance from customs or subsequent to their clearance, subject to furnishing of a certificate from the concerned State Government that the goods have been converted into animal feed.- C.B.E.&C. Circular No. 9/97-Customs dated 11-4-1997 – 1997(92) E.L.T. (T42)

Gifts / donations – Certificate from State authority – Notification No. 148/94-Customs. – In terms of Sl. No. 1 to Notification No. 148/94-Customs dated 13-7-1994, foodstuffs, medicines, medical stores of perishable nature, clothings and blankets imported by a charitable organisation mentioned therein. Clause (III)(a) of the said conditions requires the importer to produce a certificate to [Assistant Commissioner of Customs or Deputy Commissioner of Customs] from the State Govt. concerned or from person or institution specified by the CBEC cretifying that, importing institution is a bona fide orgainsation engaged in the distinction of caste, creed or race. Clause (v) of the said conditions requires the importers to furnish from the State Government concerned or from the persons or institutions specified by the central Board of Excise and Customs a certificate stating that the said goods have been distributed to the poor and needy, free of cost without any distinction of caste, creed and race.

2. Requests have been made by certain charitable institutions to specify person other than State Governments to issue certificates for the purposes of this

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