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Notification No.:104/2009-Customs

New Delhi, the 14th September, 2009

23 Bhadrapad, 1931 SAKA





Sub: Regarding exemption to the capital goods imported under Status Holder Incentive Scheme(SHIS)

G.S.R 674(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 the capital goods when imported into India against a duty credit scrip issued under the Status Holders Incentive Scheme in accordance with paragraph 3.16 of the Foreign Trade Policy (hereinafter referred to as the said scrip),

1. from the whole of the duty of customs leviable thereon under the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), and

2. from the whole of the additional duty leviable thereon under section 3 of the said Customs Tariff Act, 1975,

subject to the following conditions, namely:-

(i) that the said scrip has been issued by the licensing Authority to a status holder against exports of the products of the sectors, namely, leather (excluding finished leather), Textiles and Jute , Handicrafts, Engineering (excluding Iron and Steel, Non Ferrous Metals in primary or intermediate forms, Auto mobiles & Two wheelers, Nuclear reactors and parts and ships, Boats and Floating structures), plastic and basic chemicals(excluding Pharma Products):

Provided that the exports of the products of the above said sectors, made during 2009-10 and 2010-11 shall only be considered for entitlement under the scheme:

Provided further that, the exports specified in the Table annexed to the notification shall not be considered for computation of entitlement under the scheme;

(ii) that the said scrip is produced before the proper officer of customs at the time of clearance for debit of the duties leviable on the goods, but for this exemption;

(iii) that the said scrip shall be non-transferable and shall be used for import of capital goods relating to the sectors specified in condition (i):

Provided that, the capital goods specified in Appendix 37 B of Hand Book of Procedures Vol.1 shall not be allowed for import;

(iv) that the capital goods imported against the said scrip shall be subject to actual user condition and the importer at the time of clearance of the said capital goods, shall furnish an undertaking to this effect to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that in case of non compliance of the said condition, he shall pay on demand an amount equal to the duty leviable, but for the exemption contained herein together with interest at the rate of fifteen percent per annum from the date of clearance of the said materials;

(v) that the imports and exports are undertaken through seaports at Bedi (including Rozi-Jamnagar), Chennai, Cochin, Dahej, Dharamtar,Haldia (Haldia Dock complex of Kolkata port) Kakinada, Kandla, Kolkata, Krishnapatnam, Magdalla, Mangalore, Marmagoa, Muldwarka, Mumbai, Mundhra,Nagapattinam, Nhava Sheva, Okha, Paradeep, Pipavav, Porbander, Sikka, Tuticorin, Visakhapatnam and Vadinar or through any of the airports at Ahmedabad, Bangalore, Bhubaneswar, Chennai, Cochin, Coimbatore, Dabolim (Goa), Delhi, Hyderabad, Indore, Jaipur, Kolkata, Lucknow (Amausi), Mumbai, Nagpur, Rajasansi (Amritsar), Srinagar, Trivandrum and Varanasi or through any of the Inland Container Depots at Agra, Ahmedabad, Anaparthy (Andhra Pradesh), Babarpur, Bangalore, Bhadohi, Bhatinda, Bhilwara, Bhiwadi, Bhusawal, Chheharata (Amritsar), Coimbatore, Dadri, Dappar (Dera Bassi), Daulatabad (Wanjarwadi and Maliwada), Delhi, Dighi (Pune), Durgapur (Export Promotion Industrial Park), Faridabad, Garhi Harsaru, Gauhati, Guntur, Hyderabad, Jaipur, Jallandhar, Jamshedpur, Jodhpur, Kanpur, Karur, Kota, Kundli, Loni (District Ghaziabad), Ludhiana, Madurai, Malanpur, Mandideep (District Raisen), Miraj, Moradabad, Nagpur, Nasik, Pimpri (Pune), Pitampur (Indore), Pondicherry, Raipur, Rewari, Rudrapur(Nainital), Salem, Singanalur, Surat, Surajpur, Tirupur, Tuticorin, Udaipur, Vadodara, Varanasi, , Waluj (Aurangabad) or through the Land Customs Station at Agartala, Amritsar Rail Cargo, Attari Road, Changrabandha, Dawki, Ghojadanga, Hilli, Jogbani, Mahadipur, Nepalganj Road, Nautanva (Sonauli), Petrapole, Ranaghat, Raxaul, Singhabad and Sutarkhandi or a Special Economic Zone notified under section 4 of the Special Economic Zones Act, 2005 (28 of 2005):

Provided that the Commissioner of Customs may with in the jurisdiction , by special order, or by a Public Notice, and subject to such conditions as may be specified by him, permits import and export from any other seaport/airport/inland container depot or through any land customs station;

(vi) that where the importer does not claim exemption from the additional duty of customs leviable under section 3 of the said Customs Tariff Act, he shall be deemed not to have availed the exemption from the said duty for the purpose of calculation of the said additional duty of customs;

(vii) that the importer shall be entitled to avail of the drawback or CENVAT credit of additional duty leviable under section 3 of the said Customs Tariff Act against the amount debited in the said scrip.


Sl.No. Description
1 EOUs / EHTPs / BTPs who are availing direct tax benefits or exemption
2 Export of imported goods covered under para 2.35 of the FTP.
3 Exports through transhipment, meaning thereby that exports originating in third country but transhipped through India
4 Deemed exports
5 Exports made by Special Economic Zone units or Special Economic Zone products exported through Domestic Tariff Area units
6 Export of items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS).
7 The exports made by the Status Holders during a particular year, if benefits are availed under Technology Upgradation Fund scheme (TUFS) of Ministry of Textiles in that year.
8 The exports made under the Zero duty EPCG scheme w.e.f 1st April, 2010.

Explanation, - For the purposes of this notification,-

(i) “Capital goods” means any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernization, technological up gradation or expansion. It also includes packaging machinery and equipment, refractories for initial lining, refrigeration equipment, power generating sets, machine tools, catalysts for initial charge, equipment and instruments for testing, research and development, quality and pollution control. Capital goods may be for use in manufacturing, mining, agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture and viticulture as well as for use in services sector.

(ii) "Foreign Trade Policy" means the Foreign Trade Policy 2009-2014, published by the Government of India in the Ministry of Commerce and Industry vide notification No. 01/2009-14, dated the 27th August, 2009, as amended from time to time.

(iii) "Licensing Authority" means the Director General of Foreign Trade appointed under section 6 of the Foreign Trade (Development and Regulation ) Act,1992 (22 of 1992) or an officer authorised by him to grant a licence under the said Act.


(Rajesh Kumar Agarwal)

Under Secretary to the Government of India

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