Notification No. 107/95-Cus., dated 2-6-1995
Special Value Based Advance Licence - for export
of readymade garments under Scheme B - Imports
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 materials imported against a
Special Value Based Advance Licence (hereinafter referred to as the said licence) for the export of readymade garments
(other than leather garments) issued under Scheme B as contained in Appendix XXIIA of the Handbook of Procedure, Vol.
11st April, 1992 - 31st March, 1997 - (Revised Edition. April, 1995), published in terms of paragraph 53 of the Export and
Import Policy by the Government of India in the Ministry of Commerce vide Public Notice No. 292/ (PN) / 92-97, dated the 30th
April, 1995, from the whole of the duty of Customs leviable thereon which is specified in the First Schedule to the Customs
Tariff Act, 1975 (51 of 1975) and from the whole of the additional duty leviable thereon under section 3 of the said Customs
Tariff Act, subject to the following conditions, namely .
(1) Materials imported are covered by a Value Based Duty Exemption Entitlement Certificate (hereinafter referred to as the
said certificate) issued by the Licensing authority in the form specified in the Schedule annexed to this notification.
(2) The importer has received an export order for export of readymade garments for which the foreign buyer has opened an
irrevocable Letter of Credit in freely convertible currency in favour of the importer and the importer has in turn also opened an
overseas Letter of Credit (hereinafter referred to as the overseas Letter of Credit) for import of materials for a value not
exceeding 67% of the value of the irrevocable Letter of Credit opened by the foreign buyer.
(3) The importer at the time of clearance, -
(a) produces the said licence, certificate, and the overseas Letter of Credit for debit by proper officer of Customs;
(b) Omitted.
(c) executes a bond with such surety or security and in such form and for such sum 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 imported materials 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 materials.
(4) That the materials imported are utilized only for the manufacture and export of goods for which irrevocable Letter of Credit
has been opened in favour of importer by the foreign buyer and no part of such materials shall be disposed of or utilized in any
other manner.
(5) That the export obligation is discharged within the period specified in the said certificate or within such extended period as
may be granted by the Licensing authority by exporting goods manufactured with the use of materials imported in terms of this
notification and the importer produces the said certificate together with evidence of discharge of export obligation to the
satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs within a period of thirty days of
the expiry of period allowed for fulfillment of export obligation or within such extended period as the said Assistant
Commissioner of Customs or Deputy Commissioner of Customs may allow.
(6) That the imports and exports are undertaken through the same port, airport or inland container depot which shall be one of
the sea ports at Bombay, Calcutta, Cochin, Kandia, Mangalore, Marmagao, Madras, Nhava Sheva, Paradeep, Tuticorin and
Visakhapatnam or the airports at Ahmedabad, Bangalore, Bombay, Calcutta, Coimbatore, Delhi, Hyderabad, Jaipur, Madras,
Srinagar, Trivandrum and Varanasi or 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) "Export and Import Policy" means Export and Import Policy, 1 April, 1992 - 31 March, 1997 (Revised Edition. March, 1995)
published vide notification of Government of India in the Ministry of Commerce No. 1 (RE-95)/92-97, dated the 31st March,
1995;
(ii) "Licensing authority" means the Director General, Foreign Trade, appointed under the Foreign Trade (Development and
Regulation) Act, 1992 (22 of 1992) or any other officer authorised by him to grant a licence under the said Act;
(iii) "Materials" means, -
(a) fabrics to be actually used in the manufacture of garments to be exported to the foreign buyer in terms of Letter of Credit
opened by him in favour of the importer;
(b) trimmings and embellishments and sample yardage not exceeding 3% of the value of overseas Letter of Credit.
THE SCHEDULE
Value based duty exemption entitlement certificate
SPECIAL SCHEME B FOR READYMADE GARMENTS
I. IMPORT
[This consists of..... pages)
31. No....... (IMP) Date of issue.....
Port of Registration
Issued to
............................................................................................ (name and full address of
............................................................................................. the importer)
.............................................................................................
Materials imported against Licence No. ....dated...... issued by............. to the above
importer and covered by the list of materials specified under Part "C" of this Certifi-:ate would be eligible for exemption from
customs duties subject to the conditions specified in the notification of the Government of India, Ministry of Finance
(Department of Revenue), No. 107/95-Customs/ dated the 2nd June/1995.
The importer shall make the exports in terms of the said Notification within ...... months from the date of issue of the said
licence.
A Bond in terms of the said notification shall be executed before clearance of the goods from the customs.
Signature
Seal of licensing authority
Date
PART - A
Names and addresses of the factories where the resultant products for export are manufactured.
PART -B
Names and addresses of factories where the ancillaries to the resultant products for export are manufactured.
PART -C
Lists of items of import
Sl. No.Item of ImportQualityTechnical Characteristics
1.2. 3.4.
QuantityCIF Value in Indian Rs. and equivalent US $S. No. of the resultant products in Part E
5. 6. 7.
Total value =
PART -D
Particulars of import of materials
Sl.No.No. of the materials in Part CBill of Entry no. Date and Custom House of ImportDescriptionQuantity and net weight
1.2. 3. 4. 5.
GIF
Value
Duty leviable but for exemption Signature of the
Customs Officer with
Name, Designation &
Seal
Heading No. of the First Schedule to the Customs Tariff Act, 1975 and
Heading No. in the Schedule to the Central Excise Tariff Act, 1985 for levy of
Additional Duty
Rate of Duty
(i) Basic
(ii)Additional
Amount
of Duty
6.7. 8. 9. 10.
(Parts E and F figure in the Export Part of this DEEC)
PART -G
Duties paid on materials in respect of which the conditions of said
Notification are not complied with
Sl.No.
Sl. No. in Part D under which the import of the materials
has been entered
Description, Quantity and value of Materials on
which duty paid
Rate of Duty
leviable
(i) Basic
(ii) Additional
1.2. 3. 4.
Amount of
(i) Duty
(ii) Interest
Particulars of duty paying documentsSignature of the Customs Officer
5. 6. 7.
II. EXPORT
(This consists of..... pages)
Sl. No........ (EXP) Date of issue ......
Port of Registration...........
Issued to
.................................................................................................(Name and full address
............................................................................................ of the importer)
............................................................................................
Materials imported against Licence No............dated....... issued by....... to the above importer and covered by the list of
materials specified under Part "C" of this certificate would be eligible for exemption from customs duties subject to the
conditions specified in the notification of the Government of India, Ministry of Finance, Department of Revenue No. 107/95-
Customs, dated the 2nd June, 1995.
The importer shall make the exports in terms of the said Notification within ................ months from the date of issue of the said
licence.
A Bond in terms of the said notification shall be executed before clearance of the goods from the customs.
Signature
Seal of licensing authority
Date
PART - A
Name-and address of the factories where the resultant products for export are manufactured.
PART -B
Name and address of factories where the ancillaries to the resultant products for export are manufactured.
(Parts C and D figure in the Import Part of this DEEC)
PART -E
Resultant products
Sl. No.DescriptionQualityTechnical Characteristics.
1.2. 3.4.
QuantityFOB Value in Rs./US$S. No. of the materials in Part C
5. 6. 7.
PART -F
Particulars of exports
Sl.
No.
Sl. No. of the resultant product
in Part E
Name of the Custom House of
Shipment
Shipping Bill No. &
Date
Name of the vessel and outward entry
of the vessel
1.2. 3. 4. 5.
Quantity
Net weight of the
export product
Description as per the
Shipping Bill
FOB Value in
Rs./US$
Signature of Customs Officer with name, designation
and Seal & remarks, if any
6. 7. 8. 9. 10.
PART -H
Statement of Imports and Exports made
Type of Licence ........ Licence No.......... Date ...........
........................................... ............................................... .......................................
........................................... ............................................... ........................................
Details of Imports made
Sl. No.SLNo.of Part CDescriptionQuantity ImportedCIF value In Rs. in Equivalent US $
1.2. 3. 4. 5.
Details of Exports made
Sl. No.Sl. No. in Part EDescriptionQuantity ExportedFOB value In Rs. in Equivalent US $
1.2. 3. 4. 5.
1. I/We hereby declare that the information given in this statement is correct.
2. Export goods were manufactured using materials imported under this certificate.
3. Duties on materials not used, in the export product have been paid as per details in Part G.
Signature..............................................
Name of the Signatory..........................
Designation..........................................
Full Address..........................................
Certificate by Chartered Accountant/Cost Accountant
I have examined the applicant firm"s actual imports and exports as given above and find them as correct.
Signature...............................................
Seal.........................................................
Membership No...................................
Notification No. 107/95-Cus., dated 2-6-1995 as amended by Notifications
No. 140/95-Cus., dated 19-9-1995; No. 6/96-Cus., dated 17-1-1996 and No. 28/96-Cus., dated 15-6-1996.
