Customs duty exemption amendment: restrictions on use and transferability of imported inputs, spares valuation limit, and release advice rule. Amendment restricts exempted imports to use only for fulfilling the licence-holder's manufacturing and supply obligations; spares and consumables must remain in the importer's factory and cannot be loaned, transferred, sold or disposed of. Transfer of benefit to third parties requires a transferability endorsement on the licence, which cannot be granted until the supply obligation is fulfilled. Inputs are defined to include specified raw materials, components, intermediates, consumables and spares limited in value for maintenance of installed capital goods, and Release Advice will not be issued where exemption has been availed under another scheme.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Customs duty exemption amendment: restrictions on use and transferability of imported inputs, spares valuation limit, and release advice rule.
Amendment restricts exempted imports to use only for fulfilling the licence-holder's manufacturing and supply obligations; spares and consumables must remain in the importer's factory and cannot be loaned, transferred, sold or disposed of. Transfer of benefit to third parties requires a transferability endorsement on the licence, which cannot be granted until the supply obligation is fulfilled. Inputs are defined to include specified raw materials, components, intermediates, consumables and spares limited in value for maintenance of installed capital goods, and Release Advice will not be issued where exemption has been availed under another scheme.
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