[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRYOF FINANCE
(DEPARTMENT OF REVENUE)
NOTIFICATION No. 23/2023 - Customs
New Delhi, the 1st April, 2023.
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
exempts materials imported into India, against a valid Advance Authorisation for Annual Requirement (hereinafter
referred to as the said Authorisation) with actual user condition issued by the Regional Authority in terms of
Paragraph 4.07 of the Foreign Trade Policy 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) (hereinafter referred to as Customs
Tariff Act) and [from the whole of the additional duty leviable thereon under sub-sections (1), (3) and (5) of section
3, integrated tax leviable thereon under sub-section (7) of section 3, the goods and services tax compensation
cess leviable thereon under sub-section (9) of section3, safeguard duty leviable thereon under section 8B,
countervailing duty leviable thereon under section 9 and anti-dumping duty leviable thereon under section 9A of
the said Customs Tariff Act, subject to the following conditions, namely:-
(i) that the said authorisation is produced before the proper officer of customs at the time of clearance for debit of
the quantity and value of imports;
(ii) that the said authorisation is issued with respect to Standard Input Output Norms (SION) fixed and bears,-
(a) the name and address of the importer and the supporting manufacturer in cases where the said authorisation
has been issued to a merchant exporter; and
(b) the shipping bill number(s) and date(s) and description, quantity and value of exports of the resultant product
in cases where import takes place after fulfillment of export obligation; or
(c) the description, Cost Insurance Freight value and other specifications of the imported materials and the
description, quantity and Free on Board value of exports of the resultant product covered under an export product
group specified in the Hand Book of Procedures, in such cases where import takes place before fulfillment of
export obligation:
Provided that in respect of inputs referred in paragraphs 4.12(i) and 4.12(ii) of the Foreign Trade Policy,
the material permitted to be imported in the said authorisation shall be of the specific name or description or
quantity, respectively, as the material used in the export of the resultant product. The exporter shall declare these
particulars in the shipping bill or bill of export:
Provided further that in respect of the inputs specified in paragraph 4.44 (b) of the Hand Book of
Procedures of the Foreign Trade Policy, the technical characteristics, quality and specifications shall be declared
at the time of import and the material permitted in the said authorisation shall be of the same technical
characteristics, quality and specifications as the materials used (or to be used) in the export of the resultant
product:
Provided also that the exporter shall give declaration with regard to the technical characteristics, quality
and specifications of materials used in the export of resultant product, in the shipping bill/ bill of export;
(iii) that in respect of imports made before the discharge of export obligation, the importer at the time of clearance
of the imported materials executes a bond with such surety or security and in such form and for such sum as may
be specified by the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may
be, binding himself to pay on demand an amount equal to the duty leviable, but for the exemption contained herein,
on the imported materials in respect of which the conditions specified in this notification are not complied with,
together with interest at the rate of fifteen percent per annum from the date of clearance of the said materials;
(iv) that in respect of imports made after the discharge of export obligation, if facility of Cenvat Credit under Cenvat
Credit Rules, 2017 has been availed, then the importer shall, at the time of clearance of the imported materials
furnish a bond to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may
be, binding himself, to use the imported materials in his factory or in the factory of his supporting manufacturer for
the manufacture of dutiable goods and to submit a certificate, from the jurisdictional Central Excise officer or from
a specified chartered accountant within six months from the date of clearance of the said materials, that the
imported materials have been so used:
Provided that if the importer pays additional duty of customs leviable on the imported materials but for the
exemption contained herein, then the imported materials may be cleared without furnishing a bond specified in
this condition and the additional duty of customs so paid shall be eligible for availing Cenvat Credit under the
Cenvat Credit Rules, 2017;
(v) that in respect of imports made after the discharge of export obligation in full, and if facility under rule 18 or
sub-rule (2) of rule 19 of the Central Excise Rules, 2017 or of Cenvat credit under Cenvat Credit Rules, 2017 has
not been availed and the importer furnishes proof to this effect to the satisfaction of the Deputy Commissioner of
Customs or the Assistant Commissioner of Customs as the case may be, then the imported materials may be
cleared without furnishing a bond specified in condition (iv);
(vi) that in respect of imports made after the discharge of export obligation in full, if facility of input tax credit under
relevant Goods and Services Tax law on inputs used for manufacture and supply of goods exported has been
availed, then the importer shall, at the time of clearance of the imported materials, furnish a bond to the Deputy
Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, binding himself, to use
the imported materials in his factory or in the factory of his supporting manufacturer for the manufacture and supply
of taxable goods (other than nil rated or fully exempt supplies) and to submit a certificate from a chartered
accountant within six months from the date of clearance of the said materials, that the imported materials have
been so used;
Provided that if the importer pays integrated tax and the goods and services tax compensation cess
leviable on the imported materials under sub-section (7) and sub-section (9) respectively of section 3 of the said
Customs Tariff Act on the imported materials but for the exemption contained herein, then such imported materials
may be cleared without furnishing a bond specified in this condition;
(vii) that in respect of imports made after the discharge of export obligation in full, and if facility of input tax credit
under relevant Goods and Services Tax law has not been availed on inputs used in the manufacture and supply
of goods exported and the importer furnishes proof to this effect to the satisfaction of the Deputy Commissioner of
Customs or the Assistant Commissioner of Customs, as the case may be, then the imported materials may be
cleared without furnishing a bond specified in condition (vi);
(viii) that the imports and exports are undertaken through the seaports, airports or through the inland container
depots or through the land customs stations as mentioned in the Table 2 annexed to Notification No. 26/2023-
Customs dated 1st April, 2023 or a Special Economic Zone notified under section 4 of the Special Economic Zones
Act, 2005 (28 of 2005):
