THE CUSTOMS TARIFF ACT 1975 (Notification)
-

Notification No. 107/95-Cus., dated 2nd June, 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 sub-sections (1), (3) and (5) of 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, Kandla, 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;

2. In a case of default in export obligation, when the duty on goods is paid to regularise the default, the amount of interest paid by the importer shall not exceed the amount of duty if such regularisation has been dealt in terms of Public Notice of the Government of India in the Ministry of Commerce No. 22 (RE-2013)/2009-2014 dated the 12th August, 2013.

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 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

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

List of items of import

Sl. No.	Item of Import	Quality	Technical Characteristics
1	2	3	4

Quantity	CIF Value in Indian Rs. & in 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-C	Bill of Entry No. date and Customs House of Import	Description	Quantity and net weight
1	2	3	4	5

CIF Value	Duty Leviable but for exemption			Signature of the Customs Officer with Name, Designation & Seal.
CIF Value	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) Aux. (iii) Additional,	Amount of Duty
6	7	8	9	10

(Part E & 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) Auxiliary (iii) Additional
1	2	3	4

Amount of (i) Duty (ii) Interest	Particulars of duty paying documents	Signature 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 Imports Part of this DEEC)

PART -E

Resultant products

Sl.No.	Description	Quality	Technical Characteristic
1	2	3	4

Quantity	FOB 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 Customs 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. -	Sl. No. of partC	Description	Quantity Imported	C.I.F. Value In Rs. In Equivalent US$
1	2	3	4	5

Details of Exports Made

Sl. No. -	Sl. No. of part E	Description	Quantity Exported	C.I.F. 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 that applicant firm's actual imports and exports as given above and find them as correct.

	Signature.................................................
	Seal ..........................................................
	Membership No. ....................................

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,No. 61/99-Cus, dated 11-5-1999, No. 46/2013-Cus., 26/09/2013, Not. 26/2017 - Dated 29-6-2017.