Instructions regarding Project Imports Regulations, 1986 (PIR)

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.... *** Sir / Madam, Attention is invited to the provisions of Project Imports Regulations, 1986 (PIR) and various circulars and instructions issued by the Board on the above subject from time to time. 2. The Comptroller & Auditor General of India (C&AG) had conducted a review of the working of 'Project Imports' scheme with a view to ascertaining the level of compliance, effectiveness of internal control and whether finalization has been done by field formations within a reasonable time frame. The audit review has revealed some systemic as well as compliance weaknesses relating to grant of project imports benefits and finalization of project imports cases. The C&AG has taken a serious view on the weak monitoring of the Project Imports and ....

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....bank guarantee in respect of project imports, on completion of a period of six months from the date of submission of necessary documents from the jurisdictional Central Excise authority or any other specified authority, as proof of utilization / installation of goods for the finalization of the contract. It is hereby clarified that the above said relaxation is applicable, only if all the required documents including certificate for installation of imported goods at the Plant/ Project site, utilization of imported goods in the manufacture of declared goods etc. are submitted up to the satisfaction of proper officer for finalisation of contract. The Commissioner shall therefore ensure that the aforesaid time limit for finalization of Project ....

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....d to deter the importers from non-submission or delayed submission of relevant documents, the Commissioners should ensure that in cases where the requisite Statement / documents under Regulation 7 of PIR, 1986 is not submitted in time or submitted incomplete, then necessary action for enforcing bond / undertaking, cash security/ bank guarantees executed in this regard, issue of notice for demand of duty, penalty for non-compliance with the provisions of the Regulations may be initiated against the importer. The adjudicating authority is expected to appreciate the evidence on record including documents submitted, if any, to arrive at a decision whether duty is to be confirmed and / or penalty imposed. 5. In respect of goods cleared under Re....

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....mports registered will be subject to such plant verification. All the relevant particulars of the contract giving complete details of the goods imported shall be communicated to the jurisdictional Central Excise Office to confirm whether the same have been installed at the registered plant site in time. It has been decided by Board that jurisdictional Central Excise Commissionerate should ensure that Plant Site Verification, where ever applicable, is completed within 15 days of submission of relevant documents by the importers. However, in cases of Government Departments and Public Sector Undertakings, the requirement of PSV under project imports can be fulfilled by means of issuing appropriate Certificate by the Head of PSU / Government Un....

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....Customs will monitor the pendency and send a quarterly consolidated report of the Zone by 15th of next month to the Directorate General of Inspection (Customs & Central Excise), New Delhi in prescribed format as in Annexure-II. The DGIC&CE will in turn monitor the pendency at All India level, in centralized manner and will report to the Board on a quarterly basis about the progress made in finalization of project imports, trend of compliance etc. and suggest corrective measures to be taken, if any. 9. Board's Circular No.12/2011-Customs dated 1.3.2011 stands modified to the above extent. 10. These instructions should be brought to the notice of all the concerned by way of issuance of instructions / trade notice. 11. Difficulty faced, if ....