Duty Free Import Scheme – An Introduction

The Department of Revenue, Ministry of Finance had earlier issued a jumbo Customs Notification (Tariff) No.21/2002 dated 1.3.2002, as amended from time to time, which contains details of exemptions/concessions on Customs Duty for various goods/inputs imported into India. This Notification has been amended vide Customs Notification (Tariff) No.12/2012 dated 17th March 2012 thereby superceding the Customs Notification No.21/2002 dated 1.3.2002. As there were some errors in the entries notified in the amended Customs Notification (Tariff) No.12/2012 dated 17th March 2012, the Department of Revenue has issued a Corrigendum Notification dt.19th March 2012. Accordingly, the Duty Free Import Scheme, henceforth will be implemented as per the following new regulations.

Serial No. 282 of the aforesaid Customs Notification (Tariff) No.12/2012 dt.17.3.2012 contains the list of certain inputs required in the manufacture of leather garments which can be imported by a manufacturer of leather garments or by a merchant exporter tied-up with supporting manufacturer of leather garments for use in the manufacture of leather garments for export by that manufacturer directly or through a merchant exporter, to an extent of 3% of FOB value of export realization made in the previous year, subject to fulfillment of condition no.24 specified in the aforesaid Customs Notification.

Serial No. 259 of the aforesaid Customs Notification (Tariff) No.12/2012 dt.17.3.2012 mentions about the lining and inter lining materials which can be imported by manufacturers of leather garments or by a merchant exporter tied-up with supporting manufacturer of leather garments to an extent of 2% of FOB value of exports in the previous year, subject to fulfillment of condition no.24 of the aforesaid Customs Notification.

Serial no. 283 of the Customs Notification (Tariff) No.12/2012 dt.17.3.2012 contains the list of certain inputs required in the manufacture of leather footwear or synthetic footwear or other leather products which can be imported by manufacturer-exporters of these items to an extent of 3% of FOB value of exports in the previous year, subject to fulfillment of condition No.27 of the aforesaid Customs Notification.

The Council for Leather Exports is issuing necessary certificates namely Export Performance Certificate (EPC) and Import Certificates (IC) to eligible members in terms of Sl.Nos.282, 283 and 259 read with Condition No.24, 27 & 24 respectively of the aforesaid Customs Notification (Tariff) No.12/2012 dated 17.3.2012 under the Duty Free Import Scheme.