TaxTMI 
TaxTMI 
Classification/Assessment of Projects Imports, Baggage and Postal Imports
X X X X Extracts X X X X
X X X X Extracts X X X X
....subject the same to the applicable duty. 2. Project imports: 2.1 'Project Imports' is an Indian innovation to facilitate setting up of and expansion of industrial projects. Normally, imported goods are classified separately under different tariff headings and assessed to applicable Customs duty, but as a variety of goods are imported for setting up an industrial project their separate classification and valuation for assessment to duty becomes cumbersome. Further, the suppliers of a contracted project, do not value each and every item or parts of machinery which are supplied in stages. Hence, ascertaining values for different items delays assessment leading to demurrage and time and cost overruns for the project. Therefore, to facilitate ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ble to a single or composite machine. 2.4 Goods that can be imported under Project Import Scheme are machinery, prime movers, instruments, apparatus, appliances, control gear, transmission equipment, auxiliary equipment, equipment required for research and development purposes, equipment for testing and quality control, components, raw materials for the manufacture of these items, etc. In addition, spare parts, consumables up to 10% of the assessable value of goods can also be imported. 2.5 The purposes for which such goods can be imported under the Project Import Scheme are for 'initial setting up' or for 'substantial expansion' of a unit of the project. The 'unit' is any self contained portion of the project havi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cts should be registered prior to clearance in the Custom House through which the goods are expected to be imported. The importer shall apply for such registration in writing to the proper officer of Customs. 3.2 Regulation 5 provides in the manner of registering contracts, as follows: (i) Before any order is made by the proper officer of Customs permitting the clearance of the goods for home consumption; (ii) In the case of goods cleared for home consumption without payment of duty subject to re export in respect of fairs , exhibitions, demonstrations , seminars , congresses and conferences, duly sponsored or approved by the Government Of India or Trade fair Authority of India , as the case may be, before the date of payment of duty. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....atalogues and literature of the items under import. (viii) Two attested copies of foreign collaboration agreement, technical agreement, know-how, basic/detailed engineering agreement, equipment supply agreement, service agreement, or any other agreement with foreign collaborators/suppliers/ persons including the details of payment actually made or to be made. (ix) Such other particulars, as may be considered necessary by proper officer for the purpose of assessment under Heading No. 9801. 3.4 In regard to the requirement of registration of the contract (or contracts) and production of the 'original deed of contract', the Board noted that as per Section 10 of the Indian Contract Act, 1872 a valid contract contains certain essent....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to check the description, value and quantity of the goods imported vis-a-vis the description, value and quantity registered. In case these particulars are found in order, the Bill of Entry is assessed provisionally and handed over to the importer or his agent for payment of duty. The Project Import Group keeps a note of the description of the goods and their value in the Project Contract Register and in the file maintained in the Group for each project. 5. Finalisation of contract: 5.1 Under Regulation 7 of the PIR, 1986 the importer is required to submit, within three months from the date of clearance of the last consignment or within such extended time as the proper officer may allow, the following documents for the purpose of finaliza....