[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART -II,
SECTION-3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification
No. 68 /2017 - Customs (N. T.)
New Delhi, the 30
th
June, 2017
G.S.R. (E). -In exercise of the powers conferred by section 156 of the Customs Act, 1962 (52
of 1962),and in supersession of the Customs(Import of Goods at Concessional Rate of Duty
for Manufacture of Excisable Goods) Rules,2016 except as things done or omitted to be done
before such supersession, the Central Government hereby makes the following, namely: -
1. Short title and commencement. - (1) These rules may be called the Customs
(Import of Goods at Concessional Rate of Duty) Rules, 2017.
(2) They shall come into force on the 1
st
day of July, 2017.
2. Application. - (1) These rules shall apply to an importer, who intends to avail the
benefit of an exemption notification issued under sub-section (1) of section 25 of the
Customs Act, 1962 (52 of 1962) and where the benefit of such exemption is
dependent upon the use of imported goods covered by that notification for the
manufacture of any commodity or provision of output service.
(2) These rules shall apply only in respect of such exemption notifications which
provide for the observance of these rules.
3. Definition. - In these rules, unless the context otherwise requires, -
(a) “Act” means the Customs Act, 1962 (52 of 1962);
(b) “exemption notification” means a notification issued under sub-section (1) of
section 25 of the Act;
(c) “information” means the information provided by the manufacturer who
intends to avail the benefit of an exemption notification;
(d) “Jurisdictional Custom Officer” means an officer of Customs of a rank
equivalent to the rank of Superintendent or an Appraiser exercising
jurisdiction over the premises where either the imported goods shall be put to
use for manufacture or for rendering output services;
(e) “manufacture” means the processing of raw material or inputs in any manner
that results in emergence of a new product having a distinct name, character
and use and the term “manufacturer” shall be construed accordingly;
(f) “output service” means supply of service with the use of the imported goods.
4. Information about intent to avail benefit of exemption notification.– An importer
who intends to avail the benefit of an exemption notification shall provide the information to
the Deputy Commissioner of Customs or, as the case may be, Assistant Commissioner of
Customs having jurisdiction over the premises where the imported goods shall be put to use
for manufacture of goods or for rendering output service, the particulars, namely:-
(i) the name and address of the manufacturer;
(ii) the goods produced at his manufacturing facility;
(iii)the nature and description of imported goods used in the manufacture of goods or
providing an output service.
5. Procedure to be followed. - (1) The importer who intends to avail the benefit of an
exemption notification shall provide information -
(a) in duplicate, to the Deputy Commissioner of Customs or, as the case may be,
Assistant Commissioner of Customs having jurisdiction over the premises where the
imported goods shall be put to use for manufacture of goods or for rendering output service,
the estimated quantity and value of the goods to be imported, particulars of the exemption
notification applicable on such import and the port of import in respect of a particular
consignment for a period not exceeding one year; and
(b) in one set, to the Deputy Commissioner of Customs or, as the case may be, Assistant
Commissioner of Customs at the Custom Station of importation.
(2) The importer who intends to avail the benefit of an exemption notification shall
submit a continuity bond with such surety or security as deemed appropriate by the Deputy
Commissioner of Customs or Assistant Commissioner of Customs having jurisdiction over
the premises where the imported goods shall be put to use for manufacture of goods or for
rendering output service, with an undertaking to pay the amount equal to the difference
between the duty leviable on inputs but for the exemption and that already paid, if any, at the
time of importation, along with interest, at the rate fixed by notification issued under section
28AA of the Act, for the period starting from the date of importation of the goods on which
the exemption was availed and ending with the date of actual payment of the entire amount of
the difference of duty that he is liable to pay.
(3) The Deputy Commissioner of Customs or, as the case may be, Assistant
Commissioner of Customs having jurisdiction over the premises where the imported goods
shall be put to use for manufacture of goods or for rendering output service, shall forward one
copy of information received from the importer to the Deputy Commissioner of Customs, or
as the case may be, Assistant Commissioner of Customs at the Custom Station of
importation.
(4) On receipt of the copy of the information under clause (b) of sub-rule (1), the Deputy
Commissioner of Customs or, as the case may be, Assistant Commissioner of Customs at the
Custom Station of importation shall allow the benefit of the exemption notification to the
importer who intends to avail the benefit of exemption notification.
(6) Importer who intends to avail the benefit of an exemption notification to give
information regarding receipt of imported goods and maintain records. - (1) The
importer who intends to avail the benefit of an exemption notification shall provide the
information of the receipt of the imported goods in his premises where goods shall be put to
use for manufacture, within two days (excluding holidays, if any) of such receipt to the
jurisdictional Customs Officer.
(2) The importer who has availed the benefit of an exemption notification shall maintain an
account in such manner so as to clearly indicate the quantity and value of goods imported, the
quantity of imported goods consumed in accordance with provisions of the exemption
notification, the quantity of goods re-exported, if any, under rule 7 and the quantity remaining
in stock, bill of entry wise and shall produce the said account as and when required by the
Deputy Commissioner of Customs or, as the case may be, Assistant Commissioner of
Customs having jurisdiction over the premises where the imported goods shall be put to
use for manufacture of goods or for rendering output service.
(3) The importer who has availed the benefit of an exemption notification shall submit a
quarterly return, in the Form appended to these rules, to the Deputy Commissioner of
Customs or, as the case may be, Assistant Commissioner of Customs having jurisdiction
over the premises where the imported goods shall be put to use for manufacture of
goods or for rendering output service, by the tenth day of the following quarter.
7. Re-export or clearance of unutilised or defective goods. - (1) The importer who has
availed benefit of an exemption notification, prescribing observance of these rules may re-
export the unutilised or defective imported goods, within six months from the date of import,
with the permission of the jurisdictional Deputy Commissioner of Customs or, as the case
may be, Assistant Commissioner of Customs having jurisdiction over the premises where
the imported goods shall be put to use for manufacture of goods or for rendering output
service:
Provided that the value of such goods for re-export shall not be less than the value of the said
goods at the time of import.
(2) The importer who has availed benefit of an exemption notification, prescribing
observance of these rules may also clear the unutilised or defective imported goods, with the
permission of the jurisdictional Deputy Commissioner of Customs or, as the case may be,
Assistant Commissioner of Customs having jurisdiction over the premises where the
imported goods shall be put to use for manufacture of goods or for rendering output
service, within a period of six months from the date of import on payment of import duty
equal to the difference between the duty leviable on such goods but for the exemption availed
and that already paid, if any, at the time of importation, along with interest, at the rate fixed
by notification issued under section 28AA of the Act, for the period starting from the date of
importation of the goods on which the exemption was availed and ending with the date of
actual payment of the entire amount of the difference of duty that he is liable to pay.
8. Recovery of duty in certain case. - The importer who has availed the benefit of an
exemption notification shall use the goods imported in accordance with the conditions
mentioned in the concerned exemption notification or take action by re-export or clearance of
unutilised or defective goods under rule 7 and in the event of any failure, the Deputy
Commissioner of Customs or, as the case may be, Assistant Commissioner of Customs
having jurisdiction over the premises where the imported goods shall be put to use for
manufacture of goods or for rendering output service shall take action by invoking the
Bond to initiate the recovery proceedings of the amount equal to the difference between the
duty leviable on such goods but for the exemption and that already paid, if any, at the time of
importation, along with interest, at the rate fixed by notification issued under section 28AA of
the Act, for the period starting from the date of importation of the goods on which the
exemption was availed and ending with the date of actual payment of the entire amount of the
difference of duty that he is liable to pay.
8. References in any rule, notification, circular, instruction, standing order, trade notice or
other order pursuance to the Customs (Import of Goods at Concessional Rate of Duty for
Manufacture of Excisable Goods) Rules,1996 and any provision thereof or to the Customs
(Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules,
2016 and any corresponding provisions thereof shall, be construed as reference to the
Customs(Import of Goods at Concessional Rate of Duty) Rules, 2017.
[F. No.450/28/2016-Cus IV]
(Zubair Riaz)
Director (Customs)
Form
[See rule 6(3)]
QUARTERLY RETURN
Return for the quarter ending_____
Sl.
No.
Bill of
Entry
No. and
date
Description
of goods
imported at
concessional
rate
Opening
balance
on the 1st
day of the
quarter
Details of goods imported during the quarter
Specified purpose
for procuring the
goods at
concessional rate
of duty.
Goods manufactured
during the
quarter/Output service
provided
Whether the goods used
for specified purpose or
not and in case of export,
specify the quantity
exported with details of
Tax Invoice
Value of
goods
received
during the
quarter
Quantity
of goods
received
during the
quarter
Total of
column (4)
and (6)
Quantity
consumed
for the
intended
purpose,
during the
quarter
Quantity re-
exported
during the
quarter
Quantity
cleared in
to the
domestic
market
during the
quarter
Closing balance
on the last day
of the quarter
Description Quantity
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15)
