NOTIFICATION NO.35/1999-Custom (N.T.)Dated 8th June, 1999

Foreign Privileged Persons
In exercise of the powers conferred by sub-section (1) of section 157, read with sub-section (3) of section 160 of the Customs Act, 1962 (52 of 1962), the Central Board of Excise and Customs hereby makes the following rules to further amend the Foreign Privileged Persons"(Regulation of Customs Privileges) Rules, 1957, namely:-

1. (1) These rules may be called the Foreign Privileged Persons" (Regulation of Customs Privileges) Amendment Rules, 1999.

(2) They shall come into force on the date of their publication in the official Gazette.

2. In the Foreign Privileged persons" (Regulations of Customs Privileges) Rules, 1957,-

(i) in rule 4A:-

(a) in sub-rule (2), in clause (c), after the proviso, the following proviso shall be inserted, namely:-

"Provided further that in case such insurance company also declines to accept the offer for sale of such motor vehicle, the motor vehicle, with the permission of Central Board of Excise and Customs, may be sold to the Metal scrap Trading Corporation or any suitable disposal agency for scrapping;" b)In sub-rule (2),after clause (c), the following clause shall be inserted, namely:-

(d) may, notwithstanding any thing contained in clauses (a), (b) and (c), sell or otherwise dispose of any motor vehicle where the engine capacity thereof does not exceed 1500 CC, to any non-privileged Person, with the permission of Central Board of Excise and Customs through the Ministry of External Affairs, on payment of appropriate custom duty, on expiry of three years from the date on which such motor vehicle was imported",

(c) In sub-rule (3),for clause (ii), the following clause shall be substituted, namely:-

"(ii) Every application for sale or disposal otherwise of a motor vehicle to the state Trading Corporation, under clause (c) of sub-rule (2), shall be made to the Ministry of External Affairs, in the form in Appendix-VI and in case of accidented or totally aamaged motor vehicle, the Ministry of External Affairs shall remit the application to the Central Board of Excise and Customs, if the state trading Corporation and the insurance company have declined the offers so made or the offers of the state Trading Corporation and the insurance company are not acceptable to the Privileged Person.";

(d) after sub-rule (3), the following sub-rule shall be inserted, namely:-

"(4) Any special purpose vehicle such as communication vehicle or armoured vehicle may only be;

(a) sold to another privileged person; or

(b) re-exported, or

(c) surrendered to the nearest custom House, for scrapping or authorising a suitable Indian agency for scrapping and the sale proceeds, of scrap so obtained, if any, shall be reimbursed to the privileged person after deducting the duty leviable for such vehicle";

(ii) in rule 5, -

(a)in sub-rule(1),for the portion beginning with the words "the duty to be recovered shall" and ending with the words "the time of importation of the goods", the following shall be substituted, namely:

"The duty to be recovered shall be assessed in consultation with the Commissioner of Customs nearest to the headquarter of the Privileged Person in India";

(b) after sub-rule (1), the following sub-rules shall be inserted, namely:-

"(1A) Any motor vehicle which has engine capacity of 1500 CC and below may also be sold or otherwise disposed of to a non-privileged person on expiry of three years from the date of its importation.

(1B) The Custom duty on any vehicle sold or otherwise disposed of under sub rule(1A) shall be paid to the Commissioner of Customs nearest to the headquarters in India of the privileged person concerned. The duty to be recovered for such motor vehicle, except in case of accidented or totally damaged vehicle, shall be assessed on the depreciated value arrived after providing for epreciation at the scales specified by the Central Board of Excise and Customs in case of import of second hand motor vehicles. The rate of duty on such vehicle and the exchange rate for conversion of foreign currency into Indian Currency shall be taken as applicable on the date of approval of such sale or otherwise disposal by the said Board under clause (d) of sub-rule (2) of rule 4A.

(1C) In case of any accidented or totally damaged vehicle referred to in sub-rule(1B), the value shall be the transaction value and rate of custom duty shall be taken as that applicable to such motor vehicles, if it has not been so accidented or damaged at the time of such sale".

Sd/-
(Rajendra Singh)
Under Secretary to the Government of India

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