Foreign Privileged Persons (Regulation of Customs
Privileges) Rules, 1957
M.F. (D.R.) Notification No. 4-Cus., dated 8th January,
1957 as amended by C.B.R. No. 15-Cus., dated 19th January, 1957;
Notifications No. 177-Cus., dated 29th November, 1962; No.
124-Cus., dated 11th May, 1963; No. 221-Cus., dated 30th
September 1963; No. 91-Cus., dated 17th July, 1965; No.
151-Cus., dated 2nd October, 1965; M.F. (D.R. & I.)
Notification No. 160-Cus., dated 27th August, 1966; C.B.E. &
C. Notification No. 156-Cus., dated 26th October, 1966;
Notifications No. 111-Cus., dated 26th July, 1969; No. 163-Cus.,
dated 18-8-1978; No. 32-Cus., dated 9th February, 1979;
Notification No. 34/85-Cus., dated 20-2-1985; Notification No.
35/99-Cus. (N.T.), dated 8-6-1999; No. 43/99-Cus. (N.T.),
dated 2-7-1999 and No. 33/2001-Cus. (N.T.) dated 27-6-2001; and
No. 71/2002 - Cus (N.T.), dated 20/11/2002
In exercise of the powers conferred by
clause (c) of section 9 of the Sea Customs Act, 1878 (8 of 1878),
the Central Board of Excise and Customs hereby makes the
following rules for the purpose of laying down the procedure for
the recovery of customs duty on goods imported free of such duty
in the first instance and sold or otherwise disposed of later on
in India by the officers referred to in Serial Nos. 1, 2, 3, 3A,
4, 4A, 5 and 6 in the notification of the Government of India in
the Ministry of Finance (Department of Revenue) No. 3-Customs,
dated the 8th January, 1957.
1. Short title, commencement and application.-(1) These rules may be called the Foreign Privileged Persons
(Regulation of Customs Privileges) Rules, 1957.
(2) They shall come into force on the
8th January, 1957.
(3) They shall apply to the goods
exempt from customs duty in accordance with the notification of
the Government of India in the Ministry of Finance (Department of
Revenue) No. 3-Customs, dated the 8th January, 1957.
2. Definitions.-In these rules, unless the
context otherwise requires,
(a) "goods" means all articles imported or
purchased locally from bonded stocks free of duty in accordance
with the notification referred to in sub-rule (3) of rule 1 and
includes -
(i) motor vehicles so imported or
purchased; and
(ii) all articles including motor
vehicles purchased by any privileged persons from another
privileged person, on which customs duty has not been paid;
(b) "privileged person" means a
person entitled to import or purchase locally from bond goods
free of duty for his personal use or for the use of any member of
his family or for official use in his Mission, Consular Post or
Office or in Deputy High Commission/Assistant High Commission;
(c) "Non-privileged person" means a
person other than a privileged person.
3. Formalities to be observed at the time of
clearance of the goods.-(1) No goods shall be allowed to be
cleared free of duty unless in addition to the formalities
required to be observed ordinarily for clearing them, exemption
from duty is claimed in writing at the time of the clearance of
the goods through customs and such claim is accompanied by an
exemption certificate in Triplicate in the Forms in Appendix IA,
IB, IC, ID, IIA, IIB, IIIA, IIIB, IIIC as the case may be. [See
Form Numbers 9, 10, 11, 12, 13, 14, 15, 16 and 17 in Part 5].
(2) Such certificate shall be
signed by -
(a) the Head of the Diplomatic
Mission concerned or, in the case of a Diplomatic Mission having
more than fifteen Diplomatic Officers, a Diplomatic Officer, duly
authorised by the Head of the Mission for this purpose, if the
goods are meant for official use in the Diplomatic Mission; or
(b) the Consular Officer or Deputy
High Commissioner/Assistant High Commissioner or Trade
Commissioner in-charge of the Consular Post or Deputy High
Commission/Assistant High Commission or Trade Representation, or
in the case of a Consular Post or Deputy High
Commission/Assistant High Commission or Trade Representation
having more than ten privileged persons a Consular Officer or a
Diplomatic Officer or an Officer of the Deputy High
Commission/Assistant High Commission or Trade Representation,
authorised for this purpose by the Head of the Consular Post or
Deputy High Commission/Assistant High Commission or Trade
Representation, as the case may be, if the goods are meant for
the official use in the Consular Post or Deputy High
Commission/Assistant High Commission or Trade Representation; or
(c) the privileged person concerned if
the goods are meant for his personal use or for the use of any
member of his family:
Provided that the certificate is
countersigned by the Head of the Mission or the Consular Post or
the Deputy High Commission/Assistant High Commission or Trade
Representation, as the case may be, and if the privileged person
is attached to a Diplomatic Mission or Consular Post or Deputy
High Commission or Assistant High Commission or Trade
Representation having more than ten privileged persons, by a
Diplomatic Officer or Consular Officer or an officer of the
Deputy High Commission/Assistant High Commission or of the Trade
Representation, as the case may be, who is duly authorised.
(3) Two of the three copies of the
exemption certificate referred to in sub-rule (1) shall be sent
to the [Commissioner of Customs] of the port of importation of
the goods and the other copy shall be sent to the Protocol
Division, Ministry of External Affairs, Government of India.
(4) Where exemption from duty is
claimed in respect of a motor vehicle, an exemption certificate
in triplicate in the Form in Appendix IV-A, or Appendix IV-B (See
Form No. 18 or 19 in Part 5), as the case may be, shall be given.
The provisions of sub-rules (2) and (3) shall apply in relation
to the signature, countersignature and transmission of copies of
exemption certificates.
4. Permission for the sale or disposal of the
goods.-(1) No privileged person shall, without obtaining the
prior concurrence of the Central Board of Excise and Customs,
sell, or otherwise dispose of, to any privileged person or to
any, non-privileged person, any goods in respect of which
exemption from customs duty was given at the time of their
importation or clearance from bond, within three years from the
date on which they are imported.
(1A) Where the privileged person -
(a) relinquishes his post, or
(b) is transferred out of India,
within the period of three years referred to
in sub-rule (1), he shall with the prior concurrence of the
Central Board of Excise and Customs effects the sale, or the
disposal otherwise, of such goods before the expiry of three
months from the date of the relinquishment of his office or, as
the case may be, of his departure out of India or within such
longer period as the Central Board of Excise and Customs may
allow.
(1B) Nothing contained in sub-rule
(1A) shall be deemed to affect the right of the privileged person
to take away the goods with him on relinquishing his office or,
as the case may be, on being transferred out of India.
(2) Every application for such
concurrence shall be made by the privileged person in the Form in
Appendix V (See Form No. 20 in Part 5) to the Central Board of
Excise and Customs through the Protocol Division, Ministry of
External Affairs, Government of India.
(3) A copy of the communication of the
Central Board of Excise and Customs giving its concurrence to the
sale or disposal of the goods shall be sent to the [Commissioner
of Customs] nearest to the headquarters of the privileged person
concerned in addition to each of the officers to whom copies of
the exemption certificate, with undertaking if any, were sent
under rule 3.
(4) Nothing in this rule shall apply
to the sale or disposal otherwise of a motor vehicle in respect
of which exemption from Customs duty was given at the time of its
importation or clearance from Bond.
4A. Permission for the sale or disposal of motor
vehicles.-(1) No privileged person shall sell or otherwise
dispose of any motor vehicle in respect of which exemption from
customs duty was given at the time of its importation or
clearance from bond except in accordance with sub-rule (2).
[(2) Any privileged person may -
(a) sell or otherwise
dispose of any motor vehicle referred to in sub-rule (1) to
another privileged person, with the permission of Central Board
of Excise and Customs through the Ministry of External Affairs;
(b) re-export the motor
vehicle, with the permission of the Ministry of External Affairs;
(c) sell or otherwise
dispose of the motor vehicle to any non-privileged person, with
the permission of Central Board of Excise and Customs through the
Ministry of External Affairs, on payment of appropriate customs
duty, on expiry of three years from the date on which such motor
vehicle was imported :
Provided that a privileged person, on his
transfer out of India, may sell or otherwise dispose of a motor
vehicle, which was imported within one year of his posting in
India, to a non-privileged person prior to expiry of above-said
period of three years from the date on which such motor vehicle
was imported;
(d) sell or otherwise dispose of
an accidented / totally damaged motor vehicle, with the
permission of Central Board of Excise and Customs, to the
Insurance Company with whom the motor vehicle was insured without
prejudice to his rights to sell or otherwise dispose of the motor
vehicle in terms of clauses (a) and (b) :
Provided that in case the insurance company declines to accept
the offer for sale of the motor vehicle, the motor vehicle, with
the permission of Central Board of Excise and Customs, may be
sold to the Metal Scrap Trading Corporation or any other suitable
disposal agency for scrapping.]
[(3) Every application for sale or disposal
otherwise of a motor vehicle to another privileged person or, as
the case may be, to a non-privileged person under clauses (a) and
(c) of sub-rule (2) respectively or sale or disposal of an
accidented or totally damaged vehicle under clause (d) of
sub-rule (2), shall be made to the Ministry of External Affairs,
in the Form prescribed by the Ministry of External Affairs for
the purpose, and that Ministry shall remit the application to the
Central Board of Excise and Customs.]
[(4) Any special purpose vehicle
such as communication vehicle or armoured vehicle may only be;
(a) sold to another privileged person;
or
(b) re-exported; or
(c) surrendered to the nearest Custom
House, for scrapping or authorising a suitable Indian agency for
scrapping and the sale proceeds, of scrap so obtained, if any,
shall be reimbursed to the privileged person after deducting the
duty leviable for such vehicle.]
[4B. Permission to retain the motor
vehicle after retirement, etc.- (1) Where a privileged person
on retiring from service or relinquishing his post in India
decides to stay in India and retains the motor vehicle, in
respect of which exemption from customs duty was given at the
time of its importation or purchase from bond, for his bona fide
use, the Central Board of Excise and Customs may, on an
application made to it in this behalf, allow the person concerned
to do so without payment of customs duty subject to the condition
that the said motor vehicle has been used in India for a period
of three years or more on the date on which the said person
ceases to be a privileged person or relinquishes his post in
India (hereinafter referred to as the relevant date).
(2) Where the motor vehicle has not
been used in India for a period of three years or more on the
relevant date or if the said person chooses to sell or otherwise
dispose of the motor vehicle at a later date, customs duty shall
become payable.
(3) Where the said person proposes to
sell or otherwise dispose of the motor vehicle, he shall offer
the same to the State Trading Corporation for the said purpose
with the permission of the Central Board of Excise and Customs.
(4) The provisions of rule 5 shall apply mutatis mutandis
to the customs duty payable under this rule.]
5. Recovery of goods sold or disposed of
to non-privileged persons.- (1) Where goods, other than motor
vehicle, are cleared free of customs duty by a privileged person
and they are sold or otherwise disposed of by him (other than
re-exported) to a non-privileged person within three years from
the date of their importation, customs duty shall be recovered
from such privileged person by the [Commissioner of Customs]
nearest to the headquarters of the privileged person concerned.
[The duty to be recovered shall be assessed in consultation with
the Commissioner of Customs nearest to the headquarter of the
privileged person in India]
[(1A) * * * * * * * * ]
[(1B) The custom duty on any vehicle
sold or otherwise disposed of under clause (c) of sub-rule (2) of
rule 4A shall be paid to the Commissioner of Customs nearest to
the headquarters in India of the privileged person concerned, the
duty to be recovered for such motor vehicle, except in case of
accidented or totally damaged vehicle, shall be assessed on the
depreciated value arrived after providing for depreciation at the
scales specified by the Central Board of Excise and Customs in
case of import of second hand motor vehicles, and the rate of
duty on such vehicle and the exchange rate for conversion of
foreign currency into Indian currency shall be taken as
applicable on the date of approval of such sale or otherwise
disposal by the said Board under clause (c) of sub-rule (2) of
rule 4A :
Provided that the facility of
duty-free sale of vehicles, after four years of import, shall be
allowed on reciprocal basis to privileged persons of those
countries, which are allowing similar facility of duty-free sale
of vehicles to Indian privileged persons posted in those
countries, and for this purpose applications made to the Ministry
of External Affairs before the applicants leave India shall be
entertained.]
Provided further that the facility of
duty free sale of vehicles, after four years of import, shall be
allowed to all privileged persons belonging to the United Nations
or any other International Organisation irrespective of the fact
as to whether the United Nations or such other International
Organization is allowing similar facility of duty free sale of
vehicles to Indian privileged persons posted in the United
Nations or such other International Organization, as the case may
be.
[(1C) In the case of any accidented or
totally damaged vehicle referred to in clause (d) in sub-rule (2)
of rule 4A, the Customs duty shall be calculated taking the sale
price as cum-duty price and rate of duty shall be taken as that
applicable to such motor vehicle, if it had not been so
accidented or damaged at the time of such sale.]
[(1D) in case a vehicle has been
stolen, customs duty shall be calculated taking the amount of
insurance claim as cum duty price and rate of duty shall be taken
as that applicable to such motor vehicle.]
(2) The privileged person
concerned shall furnish such relevant information and documents
relating to the goods as the officer who is to recover duty under
sub-rule (1) may require and shall also arrange to produce the
goods desired to be sold or sold before that officer or any
customs officer for inspection so as to enable that officer to
make a correct appraisement of the value of the goods for the
purpose of assessing them to duty.
(3) As soon as the amount of duty
leviable has been paid, all the other authorities who received
copies of the certificate together with the undertaking if any,
in respect of the goods, shall be informed of this fact by the
Collector who makes the recovery.
[(4)
* * * * * * * * ]
6. Sale or disposal of goods to privileged
person.- (1) Where goods which were cleared free of customs
duty by a privileged person are sold or otherwise disposed of by
him in favour of any other privileged person within a period of
three years from the date of their importation, it shall be the
duty of the privileged person selling or disposing of such goods
to obtain from the privileged person buying or taking them, an
exemption certificate in duplicate, as required by sub-rules (1)
and (2) of rule 3, and in the case of a motor vehicle, also an
undertaking in duplicate as required by sub-rule (4) of that rule
and to forward copies thereof to the persons referred to in
sub-rule (3) of that rule and in every such case, a report shall
be sent to the Central Board of Excise and Customs by the
privileged person selling or disposing of the goods as well as by
the privileged person buying or taking them.
(2) The provisions of this rule shall
apply to the goods sold or disposed of under sub-rule (1) as
often as they are sold or otherwise disposed of by a privileged
person to another privileged person :
Provided that this rule shall cease to
apply to such goods other than motor vehicles after the expiry of
three years from the date of their importation.
7. Powers of [Commissioners].-A [Commissioner
of Customs] may adopt such procedure as he thinks necessary for
the purpose of giving effect to these rules.
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