Download Document

[TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE
OF INDIA (EXTRAORDINARY)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF REVENUE
(CENTRAL BOARD OF EXCISE AND CUSTOMS)

Notification No. 1/2017-CUSTOMS
New Delhi, 20
th
January, 2017

G.S.R (E) 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 makes the following further amendments in the
notification of the Government of India in the Ministry of Finance (Department of Revenue),
No. 153/93-Customs, dated the 13th August, 1993, namely:-

In the said notification,

(1) in the paragraph for the conditions, the following conditions shall be substituted,-

“ (i) the importer (hereinafter referred to as the Infrastructure Service Provider or
the ISP) shall produce a certificate to the Assistant Commissioner or the
Deputy Commissioner of Customs from the concerned Director of the
Software Technology Parks Society set up by the Government of India,
Department of Electronics, to the effect that the said imported goods are to be
installed or used in the premises of the ISP and that the importer of such goods
has been authorised by the said Inter-Ministerial Standing Committee for
Hundred Percent Export Oriented Units in the Electronics Hardware
Technology Parks (EHTP) and Software Technology Parks (STP) appointed
by the notification of the Government of India in the Ministry of Industry,
Department of Industrial Development No. S.O. 117(E), dated the 22nd
February, 1993;

(ii) the goods shall only be used for the purpose of export of software by the STP
Units located in the premises of the ISP;

(iii) the ISP executes a bond before the Assistant Commissioner or the Deputy
Commissioner of Customs binding himself to,-

(a) install the said goods in his premises and use them in connection with
the export of software by the STP Units located in the premises;

(b) not to remove the said goods from the premises without the approval of
Assistant Commissioner or Deputy Commissioner of Customs;

(c) pay on demand, an amount equal to the duty leviable on the said goods
as are not proved to the satisfaction of the Assistant Commissioner or
Deputy Commissioner of Customs to have been used for the purposes
for which the said goods were imported; and

(d) follow the procedure as may be prescribed by the Assistant
Commissioner or Deputy Commissioner of Customs for the receipt,
storage, use and removal of the goods;

(iv) subject to the permission being granted by the Director of the Software
Technology Park, the Assistant Commissioner or Deputy Commissioner of
Customs, may allow an ISP to re-export the said goods;

(v) without prejudice to any other provision contained in this notification, the
Assistant Commissioner of Customs or Deputy Commissioner of Customs
may, in accordance with the Foreign Trade Policy, allow the ISP to clear the
goods specified in the Annexure to this notification on payment of duty on the
depreciated value thereof and at the rate in force on the date of clearance. The
depreciation shall be allowed in straight line method as specified below,
namely: -

for every quarter in the first year @ 4%
for every quarter in the second year @ 3%
for every quarter in the third year @ 3%
for every quarter in the fourth and fifth year @ 2.5 %
and thereafter for every quarter @ 2%

Explanation, –

(1) For the purpose of computing the rate of depreciation for any part of a
quarter, a full such quarter shall be taken into account;

(2) there shall be no upper limit for such depreciation and depreciation
upto 100% could be allowed;

(3) The period of depreciation shall be calculated:


i. from the date of commencement of operations, as certified by the
Director of the Software Technology Park, to the date of clearance
of the goods; or

ii. where such goods have been received in an operational ISP
premises, from date of their installation as certified by the Director
of the Software Technology Park, by a STP unit, to the date of
clearance.”;

(2) in the Annexure, under heading “V OTHER ITEMS”, against serial number 2, for
the words, “Chief Executive” the word, “Director” shall be substituted.”.

F. No. DGEP/EoU/STP/28/2016

(Temsunaro Jamir)
Under Secretary to the Government of India

Note. - The principal notification No. 153/1993 Customs, dated the 13
th
August, 1993 was
published in the Gazette of India, Extraordinary, Part II, section 3, Sub-section (i) vide
number G.S.R. 554(E), dated the 13
th
August, 1993 and was last amended by Notification
No.5/2007- Customs, dated 15
th
January, 2007, published in the Gazette of India,
Extraordinary, Part II, section 3, Sub-section (i) vide number G.S.R. 27(E), dated 15
th

January, 2007.