|What are ‘Project Imports’? What are the advantages of importing under Project Import Regulations?|
|What are the relevant provisions in the Customs Tariff? What are the conditions to be fulfilled to avail of the benefits?|
Q1. What are ‘Project Imports’? What are the advantages of importing under Project Import Regulations?
Project Imports are the imports of machinery, instruments, and apparatus
etc., required for initial sating up of a unit or for substantial expansion of
an existing Unit.
Some of the advantages of importing the goods under Project Import
Regulations are that all the machinery, appliances, instruments etc., imported
are charges to duty at t flat rate of duty under the same tariff heading.
Project Imports assessment is a scheme of assessment which is designed to
help expeditious and easy assessment of variety of industrial goods falling
under different chapters of the Customs Tariff,. The importer to arrive at the cost
structure etc can easily work out estimation of import duty payable.
Q.2 What are the
relevant provisions in the Customs Tariff?
What are the conditions to be fulfilled to avail of the benefits?
goods imported under the Project Import Regulations are classified under Heading
9801.00 of the Customs Tariff and to be eligible for classification of the goods
under this Heading, the importer, should comply with certain conditions as
stipulated under the Project Import Regulations, l986.
Only contracts, which are registered with the Custom house of import,
will be eligible for assessment under Heading No. 98.01. This registration must have been
obtained before an order of clearance for home consumption is passed by the
proper officer of Customs
Apart from the machinery, spares up to 10 percent of the value of machinery, are also eligible for the benefit of the Project Import Regulations, 1986
The benefit is available only to such of the goods forming apart of the
plant. The goods imported for
manufacture of the finished product (end product) of the plant are not eligible
for the benefit of Project Import Regulation 1986.