Exemption to imports relating to Defence and internal security forces.
23-7-1996
Notification No. 39/96-Customs
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 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 imported into India, from the whole of the duty of customs leviable thereon which is specified in the said First
Schedule and from the whole of the additional duty leviable thereon under section 3 of the second mentioned Act, subject to the
conditions, if any, specified in the corresponding entry in column (3) of the said Table.
Table
S.No. Description of goods Conditions
(1) (2) (3)
1.Medals and decorations (including medal ribbons)
If imported directly by the Government of India in the Ministry of
Defence.
2.
Personal effects of the persons on duty out of India
with the Indian naval, military or air forces or with
the Indian Navy
If imported for delivery to the next of kin of such person if he dies or is
wounded, is missing or is taken prisoner of war.
3.* * * * . *
4.
Bonafide gifts from donors abroad when imported
for the maintenance of war graves by an institution
If,-
(a) a certificate is produced from the Ministry of Defence that the said
goods are intended solely for the purpose of maintenance of war
graves; and
(b) the head of the importing institution certifies in each case that the
said goods are intended only for the above purpose and shall not be
sold or disposed of.
5.
Supplies made out of warehoused goods
belonging to Air India International
If,-
(a) the supplies are made to the two specific 737 aircrafts maintained
and operated by the Indian Air Force for use of Government of India
for the purpose of certain special assignments; and
(b) an officer not below the rank of an Air Vice-Marshal certifies in
each case that the said supplies are required for the purpose
specified above.
6.
Imported stores purchased out of bonded stocks
lying in a warehouse
If,-
(a) the imported stores are intended to be supplied free by the
Government for use of the crew of a ship of the Coast Guard
Organisation, in accordance with their conditions of service;
(b) a shipping bill in the prescribed form has been presented and the
export duties, penalties, rent, interest and other charges payable, in
respect of the imported stores have been paid;
(c) an order for clearance of the imported stores for taking on board a
ship of the Coast Guard Organisation has been made by the proper
officer; and
(d) the procedure as may be specified by the Commissioner of
Customs in this behalf is followed.
7.
Paints; ferrous and non-ferrous metals in any form
and articles thereof
if,-
(a) the said goods conform to aircraft and aero-space secifications;
(b) the said goods are imported for use in the manufacture of aircrafts
including helicopters and such manufacture is against an indent from
the Ministry of Defence and the aircrafts including helicopters so
manufactured are appropriated by the Ministry of Defence;
(c) the importer undertakes to store the said goods separately and
account for the same to the satisfaction of the Assistant
Commissioner of Customs or Deputy Commissioner of Customs;
(d) the importer, by execution of a bond in such form and for such sum
as may be specified by that Assistant Commissioner, binds himself to
pay on demand in"respect of such quantity of the said goods, as is
not proved to the satisfication of the said Assistant Commissioner to
have been used in the aforesaid manner, an amount equal to the duty
leviable but for the exemption contained herein.
8.
Goods imported for trial, demonstration or training
before any authority under the Ministry of Defence
in the Government of India
If,-
(a) a certificate from the Under Secretary to the Government of India
in the Ministry of Defence is produced to the Assistant Commissioner
of Customs or Deputy Commissioner of Customs, in each case, that
the goods imported are for the purpose of trial, demonstration or
training, and
(b) the importer undertakes, in each case, to pay the duty leviable on
such goods (except those which are certified by the said Under
Secretary as having been consumed in the process of trial,
demonstration or training) which are not re-exported by him within a
period of six months from the date of importation or within such
extended period thal the said Assistant Commissioner may allow.
9.
The following goods required for construction of,
or fitment to, ships of Indian Navy Coast Guard :-
(i) machinery, equipment, components and raw
materials;
(ii) spares and test equipment for maintenance,
testing and tuning of imported equipment;
(iii) parts required for manufacture of indigenous
equipment by Indian suppliers for supply to Indian
Navy Coast Guard.
If imported by the Government of India or by a person authorised by
that Government, or shipped on the order of a Department of that
Government and appropriated to such order at the time of shipment.
10.
(i) Aircrafts, aircrafts parts, aircraft engines and
aircraft engine parts;
(ii) Jigs, tools and ground handling equipment of
aircrafts for defence use;
(iii) Arms, ammunition and military stores;
(iv) Tools and gauges which are for use only with
ammunition and explosives of service use;
ammunition chemicals; electric detonators; fire
directing and fire control instruments such as
range finders, predictors, platters, computers;
sight dial; signal equipment including wireless
equipment and component parts thereof, used
exclusively
by the defence services; test equipment for radars
for service use; military bridging stores and
equipment; ASDIC and ECHO sounding
equipment; specialised cameras for Air Force
use; mines sweeping gear and parachutes;
(v) Radars, torpedoes, sonar sets, mine laying
gear, diving equipment and their spares,
accessories, jigs, tools, testing equipment and
components;
(vi) Spare parts, accessories, jigs, tools, testing
equipment, components, special raw materials
and half wroughts like steel forgings and castings,
to be processed into finished components for
armoured and specialised vehicles peculiar to the
defence services;
(vii) Guided weapons and their accessories:
(viii) Components, spares, jigs, fixtures, tools,
dies, moulds and test equipment required for the
manufacture and testing of guided weapons and
their accessories;
(ix) Raw material and special materials required
for the manufacture of guided weapons and their
accessories;
(x) Rock drills and breakers;
(xi) All types of ground support equipment for
guided weapons and their accessories.
If,-
(a) the said goods are imported by the Government of India, the
contractors of the Government of India, State Governments, Public
Sector Undertakings of the Central Government or the State
Governments and the sub-contractors of such Public Sector
Undertakings; and
(b) in the case of imports by contractors or sub-contractors or Public
Sector Undertakings referred above, the importer furnishes at the
time of import a duty exemption certificate showing :-
(1) the details of the purchase order placed by the Ministry of Defence
on the contractors or sub-contractors and on the said Public Sector
Undertakings and the quantity of the items required to be imported to
execute the said order; and
(2) the details of the purchase order
placed by the said contractors or sub-contractors or the said Public
Sector Undertakings, on their foreign suppliers indicating the
description and quantity of the items .
Explanation. -
(i) in the case of imports by contractors of the Government of India,
who are contractors of Research and Development Laboratories or
Establishments under the Ministry of Defence, the certificate shall be
signed by the Chief Controller of Research and Development (R) of
the said Laboratories or Establishments;
(ii) in the case of imports by Public Sector Undertakings of the Central
Government under the Ministry of Defence, the certificate shall be
signed by the functional Director of such Undertaking; and
(iii) in other cases where a certificate is to be furnished by the
importer at the time of import in terms of condition (b) above, the
certificate shall be signed by an officer not below the rank of a Joint
Secretary to the Government of India, in the Ministry of Defence.
11.
(i) Machines, appliances, instruments, parts and
equipment required for the construction of, or
fitment to, or maintenance of, patrol crafts;
(ii) Wireless transmission and receiving sets and
their components;
(iii) Night vision equipment and their components;
(iv) Arms and their components, and ammunition;
(v)Omitted.
(vi) Radio communication test sets;
(vii) Spare parts of patrol crafts;
(viii) Spare parts in respect of any of the above
items.
If,-
(a) the goods are imported by the Government of India, or by a person
authorised by that Government or shipped on the order of a
Department of that Government for use in anti-smuggling operations
and are appropriated under such order at the time of shipment, and
(b) the importer produces a certificate from the Under Secretary to the
Government of India in the Department of Revenue to the effect that
the said goods are intended for use in anti-smuggling operations.
12.
(i) Spedeheat grenades CS, 3-way grenades
CN/CS, practice grenades, blast dispersion
grenades with two second bouchon, model 34
single blast grenades, one second delay firing
mechanism for spede-heat grenades, two
seconds delay firing mechanism for three way
grenades;
(ii) Long range shells CN/CS, short range shells
CN/CS, flite rite-shells CN/CS, practice shells
CN/CS;
(iii) Refills, accessories caps, gas pellets and
recapping and decapping machines for practice
shells, gas guns and accessories and spare parts
for gas guns;
(iv) Truncheons, truncheon cartridges, one second
bouchons, two second bouchons, chemical mace,
aerosol tear gas spray, tear gas billets, paper fog
and bullet proof protective vests.
If,-
(a) the said goods are imported for the use of Police Force of the
States or the Union territories, or the Central Reserve Police Force;
and
(b) the importer produces a certificate from the Under Secretary to the
Government of India in the Ministry of Home Affairs to the effect that
the said goods are intended for the aforesaid use.
13.
Machinery, equipment, instruments, fittings,
devices, scientific apparatus, components,
spares, tools, accessories, computer hardware,
computer software,technical know-how(in the form
of documents and drawings in the printed media)
castings, forgings, pipings, tubings, raw materials
and consumables required for the purpose of
Advance Technology Vessels Programme
(ATVP) of the Ministry of Defence.
If,-
(a) the said goods are imported by work centres of the ATVP,
Government agencies or public sector undertakings, as may be
designated by an officer not below the rank of Deputy Secretary to the
Government of India in the Ministry of Defence; and
(b) such importers produce to the Assistant Commissioner of
Customs or Deputy Commissioner of Customs, at the time of import,
in each case, a list of the said goods with their relevant description,
duly certified by the Project Director or Director of the ATV
Programme(of the rank of Rear Admiral of the Indian Navy or of
equvalent rank of the Joint Secretary to the Government of India), to
the effect that the said goods are required for the ATVP, shall be
used only for the ATVP AND that they are not manufactured in India;
and
Explanation.- Nothing contained in this exemption shall have effect on
or after the 1st day of January, 2006.
14
Machinery, equipment, instruments, components,
jigs, fixtures, dies, tools, raw materials,
accessories and spares required for the purposes
of Integrated Guided Missile Development
Programme (IGMDP) of the Ministry of Defence.
If,-
(a) the said goods are imported by authorised works centres of the
IGMDP, as may be designated by an officer not below the rank of a
Deputy Secretary to the Government of India in the Ministry of
Defence; and
(b) the authorised work centre produces to the Joint Commissioner of
Customs or the Assistant Commissioner of Customs or Deputy
Commissioner of Customs, as the case may be, at the time of import,
in each case, a list of the said goods with their relevant description
duly certified by the Member Secretary, Programme Management
Board of the IGMDP, Defence Research and Development
Laboratory, Hyderabad to the effect that the said goods mentioned in
the list are required for the purposes of IGMDP, and that they are not
manufactured in India and that the imports of the said goods
mentioned in the said list are authorised by the Ministry of Defence
under and for the purposes of the IGMDP and shall be used only for
the purposes of the IGMDP.
Explanation. - Nothing contained in this exemption shall have effect
on or after the 1st day of January, 2006.
15.
Machinery, instruments, tools including
accessories of such machinery, instruments and
tools required for the setting up of ammunition
filling facilities in the Ordnance Factory, Badmal,
Distt. : Bolangir in Orissa, of the Ministry of
Defence.
If,-
(a) the said goods are imported by the General Manager,Ordnance
Factory,Badmal, Distt.: Bolangir in Orissa; and
(b) the importer produces to the Assistant Commissioner of Customs
or Deputy Commissioner of Customs, at the time of import,in each
case,a list of the said goods with their relevant description duly
certified by an officer not below the rank of a Joint Director in the
Ordnance Factory Board,Calcutta,to the effect that the said goods
mentioned in the list are required for the setting up of ammunition
filling facilities in the Ordnance Factory, Badmal,
Distt. : Bolangir in Orissa, and that such goods are not manufactured
in India and shall be used only for the above purpose in the said
factory.
Explanation. - Nothing contained in this exemption shall have effect
on or after the 1st day of August, 2002.
16.
Ballistic grade aramid fabric, aramid thread,
ballistic grade ceramic plate, high performance
polyethylene plate, special grade polyurethane
paste and special grade thermoplastic film
required for the manufacture of bullet proof jackets
for supply to the armed forces of the Union under
the Ministry of Defence or the Police Forces of the
States or the Union Territories.
if,-
(a) the importer furnishes to the Assistant Commissioner of Customs
or Deputy Commissioner of Customs, at the time of importation, in
each case, a list of the said goods, with relevant description and
quantities required for the manufacture of such bullet proof jackets;
and
(b) such list is duly certified by an officer not below the rank of a Joint
Secretary to the Government of India :-
(1) in the Ministry of Defence, in the case of imports made against an
order for supply of such bullet proof jackets to the Armed Forces of
the Union under the Ministry of Defence; or (2) in the Ministry of Home
Affairs, in case the import is made against an order for supply of such
bullet proof jackets to the Police Forces of the States or the Union
Territories. Explanation. - Police Forces of the States or the Union
Territories shall also include the Central Reserve Police Force, the
Indo-Tibetan Border Police Force, the Special Services Bureau, the
Border Security Force, the Central Industrial Security Force and the
National Security Guards maintained or constituted under the Central
Reserve Police Force Act, 1949 (66 of 1949), the Indo-Tibetan
Border Police Force Act, 1992 (35 of 1992), the Border Security
Force Act, 1968 (47 of 1968), the Central Industrial Security Force
Act, 1968 (50 of 1968) and the National Security Guard Act, 1986 (47
of 1986).
17.
Machinery, equipment, instruments, components,
spares, jigs and fixtures, dies, tools, accessories,
computer software, raw materials and
consumables required for the purpose of
SAMYUKTA Programme of the Ministry of
Defence.
If,-
(a)
the said goods are imported by works centres of the SAMYUKTA
Programme, Government agencies or public sector undertakings, as
may be designated by an officer not below the rank of a Deputy
Secretary to the Government of India in the Ministry of Defence; and
(b) such importers produce to the Joint Commissioner of Customs or
the Assistant Commissioner of Customs or Deputy Commissioner of
Customs, as the case may be, at the time of import, in each case, a
list of the said goods with their relevant description, -
(1) duly certified by the Programme Director or Associate
Programme Director SAMYUKTA Programme, Department of
Defence Research and Development, to the effect that the said
goods are required for the SAMYUKTA Programme, shall be used
only for the SAMYUKTA Programme and that they are not
manufactured in India; and
(2) duly certified also by an officer not below the rank of an Under
Secretary to the Government of India in the Ministry of Defence to the
effect that the imports of the said goods mentioned in the said list are
authorised by the Ministry of Defence under and for the purposes of
the SAMYUKTA Programme.
Explanation. - Nothing contained in this exemption shall have effect
on or after the 1st day of December, 2002.
18.
Machinery, equipment, instruments, components,
spares, tools, accessories, computer software,
mock ups and models, raw materials and
consumables required for the purposes of Light
Combat Aircraft Programme (LCAP) of the
Ministry of Defence.
If,-(a) the said goods are imported by authorised works centres of the
LCAP, as may be designated by an officer not below the rank of a
Deputy Secretary to the Government of India, in the Ministry of
Defence; and
(b) such importers produce to the Assistant Commissioner of
Customs or Deputy Commissioner of Customs, at the time of import,
in each case, a list of the said goods with their relevant description, -
(1) duly certified by the Senior Manager, Aeronautical Development
Agency, to the effect that the goods mentioned in the said list are
required for the LCAP of the Ministry of Defence, shall be used only
for the LCAP and that they are not manufactured in India; and
(2) duly certified also by an officer not below the rank of an Under
Secretary to the Government of India in the Ministry of Defence to the
effect that the imports of the goods mentioned in the said list are
authorised by the Ministry of Defence under and for the purposes of
the LCAP.
Explanation. - Nothing contained in this exemption shall have effect
on or after the 1st day of July, 2006.
19.
Machinery, equipment, instruments, components,
spares, raw materials, consumables, jigs, fixtures
tools, accessories and computer software
required for the purposes of the SANGRAHA
Programme of the Ministry of Defence
If,-
(a) the said goods are imported by authorised works centres of the
SANGRAHA Programme/as may be designated, by an officer not
below the rank of a Deputy Secretary to the Government of India, in
the Ministry of Defence; and
(b) such importer produces to the Assistant Commissioner of
Customs or Deputy Commissioner of Customs, at the time of import,
in each case, a list of the said goods with their relevant description, -
(1) duly certified by the Programme Director or Associate
Programme Director, Department of Defence Research and
Development, to the effect that the goods mentioned in the said list
are required for the SANGRAHA Programme of the Ministry of
Defence, shall, be used only for the SANGRAHA Programme and that
they are not manufactured in India; and (2) duly certified also by an
officer not below the rank of an Under Secretary to the Government of
India in the Ministry of Defence to the effect that the imports of the
goods mentioned in the said list are authorised by the Ministry of
Defence under and for the purposes of the SANGRAHA Programme.
E xplanation, - Nothing contained in this exemption shall have effect
on or after the 1st day of July, 2002.
20.
Bomb disposal suits/helmets /protection shields.
Bomb suppression blanket. Explosive detectors
including hand held or portable type. Electronic
stethoscope. Remote car opening tool (push/pull
type). Portable X-ray machine/system, Inspection/
Search mirrors - illuminated/ telescopic or
otherwise. Mine detectors, Metal detectors
(portable or fixed), Postal bomb detector.
Explosive container. Water jet disrupter with
cartridges and laser sight and Telescopic
manipulator, Non-linear junction detector. Optical
fibre scopes, Search lights (dragon variety),
Radiation detectors. Parcel viewer. Alarm
systems, CCTV systems. Bomb disrupter, Bomb
trailer, Blasting machines. Wire and cable locators
if,-
(a) imported by the Police Force of the States or Union territories or
Central Reserve Police Force, National Security Guard or Special
Protection Group or Border Security Force or Central Industrial
Security Force or Indo-Tibetan Border Police or Assam Rifles or
Railway Protection Force or Special Frontier Force, for bomb
detection or disposal purposes; and
(b) the importer produces a certificate from an officer in the Ministry of
Home Affairs or Ministry of Railways, as the case may be, not below
the rank of an Under Secretary to the Government of India to the effect
that the said goods are intended for the aforesaid use.
1. in condition (a), for the words "Assam Rifles or Special Frontier
Force", the words "Assam Rifles or Railway Protection Force or
Special Frontier Force" shall be substituted; and
2. in condition (b), for the words "in the Ministry of Home Affairs
not below the rank of an Under Secretary", the words "in the
Ministry of Home Affairs or Ministry of Railways, as the case
may be, not below the rank of an Under Secretary" shall be
substituted.
21
Capital equipment required for setting up of
facilities for manufacture of SU-30 MKI aircraft
If imported by M/S Hindustan Aeronautics Limited (H.A.L.).
Notification No.39/96-Cus., dated 23-7-1996 as amended by Notification 60/96-Cus., dated 22-8-1996; No.86/96-Cus.,
dated 6-11-1996; No. 19/97-Cus.; dated 1-3-1997;No. 69/97-Cus.; dated 15-9-1997;No. 28/98-Cus.; dated 2-6-1998; No.
99/98-Cus.; dated 27-11-1998;No. 27/99-Cus.; dated 28-2-1999;No. 111/99-Cus.; dated 21-9-1999 and Notification
146/2000-Cus, dated 15-12-2000; No. 118/99-Cus.; dated 29-10-1999;No. 8/2000-Cus.; dated 27-1-2000;No. 11/2000-
Cus.; dated 31-1-2000;
No. 20/2000-Cus.; dated 1-3-2000; No.103/2000-Cus.,dated 19-7-2000; No.33/2001-Customs dated 29-03-01.and
No.66/2002-cus dated 26-6-2002.
