Exemption to inputs required for the manufacture of iron and steel intermediates when imported into India.

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962, the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts inputs required for the manufacture of iron and steel intermediates when imported into India, from the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), subject to the following conditions, namely:-

(1) that the importer has been granted necessary import licence (hereinafter referred to as the said licence)

by the Licensing Authority for the import of the said inputs for the aforesaid purpose in terms of Engineering Products Export (Replenishment of Iron and Steel Intermediates) scheme as notified by the Government of India in the Ministry of Commerce Notification No. S.O. 130. (e) dated the 1st March, 1995 and the said licence has been produced at the time of clearance for debit by the proper officer of customs;

(2) Omitted

(3) the importer furnishes a bond, with such surety or security, in such form as may be specified by the Assistant Commissioner of Customs or Deputy Commissioner of Customs binding himself to pay on demand an amount equal to the duty leviable on the said inputs but for the exemption contained herein, in respect of which the conditions specified in this notification have not been complied with; together with interest at the rate of 24% per annum from the date of clearance of the said inputs.

(4) that the importer produces evidence of having discharged the obligation relating to supply of iron and steel intermediates to the Engineering Products exporters to the satisfaction of the Assistant Commissioner of Customs within a period of thirty days from the expiry of period allowed for fulfilment of the obligation or within such extended period as the said Assistant Commissioner of Customs or Deputy Commissioner of Customs may allow;

(5) that the inputs so imported shall not be disposed off or utilised in any manner, except for utilisation in the discharge of obligation to manufacture and supply iron and steel intermediates in terms of this notification, before the said obligation under the said licence has been discharged in full:

Provided that spares and consumables imported in terms of this notification shall not be loaned, transferred, sold or disposed of in any manner, and shall be used by the importer only in his factory;

(6) where benefit of this notification is sought by a person other than the licencee, such benefit shall be allowed against the said licence only if it bears endorsement of transferability by the Licencing Authority:

Provided that endorsement of transferability shall not be made by the Licencing Authority before the obligation to supply iron and steel intermediates under the said licence has been fulfilled.

(7) that the imports and exports are undertaken through sea ports at Bombay, Calcutta, Cochin, Kandla, Mangalore, Marmagoa, Madras, Nhava Sheva, Paradeep, Tuticorin and Visakhapatnam, or through any of the airports at the Ahmedabad, Bangalore, Bombay, Calcutta, Coimbatore, Delhi, Hyderabad, Jaipur, Madras, Srinagar, Trivandrum and Varanasi or through any of the Inland Container Depots at Bangalore, Coimbatore, Delhi, Gauhati, Hyderabad, Kanpur, Ludhiana, Moradabad, Pimpri(Pune) and Pitampur (Indore):

Provided that the Commissioner of Customs may by special order 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"

Explanation. - In this notification,-

(i) "Engineering products" means export items (other than iron steel, ferro alloys and refractories) specified under the export product group "Engineering Products" in the I-O Norms and which have already been exported;

(ii) 'I-O Norms' means the Standard Input-Output and Value Addition norms as contained in the Hand Book of Procedures (Volume II) published vide public Notice No.121 (PN)/92-97 dated the 31 March, 1992 of the Government of India in the Ministry of Commerce, as amended from time to time;

(iii) "inputs" means, -

(a) raw materials, components, intermediates and consumables specified as import items in the I-O Norms and required for the manufacture of iron and steel intermediates; and

(b) spares for a value not exceeding 5% of the value of the licence required for the maintenance of capital goods installed in the importer's factory.

(iv) "Iron and Steel Intermediates" means export Items specified under sub-group "Iron, Steel, Ferro Alloys and Refractories" under the export product group "Engineering Products" in I-O Norms and in respect of which value addition has been specified in the I-O Norms, and such items are supplied to an exporter as replenishment for similar items already used in the manufacture of the Engineering Products against a Release Advice issued by the Licensing Authority:

Provided that no such Release Advice shall be issued by the Licensing Authority where benefit of duty exemption for such items has been availed under any other scheme.

(v) "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;

(vi) "Release Advice" means a Release Order indicating the name, description and technical characteristics of the iron and steel intermediates, their quantities and value thereof as per the I-O norms.

[Notfn. No. 10/95-Cus. dt. 7.3.1995 as amended by Notfn. Nos. 101/95-Cus. dt. 26.5.1995, 143/95-Cus. dt. 19.5.1995, 157/95-Cus. dt. 9.11.1995, 23/96-Cus. dt. 15.6.1996]