Annexure-III

[DEEPAK SHARMA]

ABC Manufacturing mobile battery applicable duty @ 2%

prior to recent budget inputs of mobile battery was imported by ABC against Annexure-III without payment of duty. As Basic Customs Duty, CVD & SAD was leviable on it. recent budget completely exempted the inputs which use in or in relation to manufacture of mobile battery. now either Annexure-III is require to import the goods or not as there is no duty on import of inputs of Mobile battery.

AI Summary

Exemption procedure for imported inputs requires compliance with concessional import rules and prescribed procedural conditions.
Exemption for imported inputs for mobile battery manufacture is conditional on following the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules. Rule 5 requires the manufacturer to submit specified information to Central Excise and Customs, furnish a continuity bond undertaking payment of duty difference with interest, and provide factory registration details in the bill of entry; Annexure III is not specified in the rule and is not required where the inputs are fully exempt.