Customs/Excise - Simplified procedure for units engaged in Maintenance, Repair and Overhaul of aircrafts

By Vijay Kumar

AS per Sl. No. 448 of the Table to Notification No. 12/2012-Cus dated 17.03.2012, Parts, testing equipment, tools and tool-kits for maintenance, repair, and overhauling of aircraft and parts thereof falling under heading 8802 by the units engaged in such activities are exempted subject to the condition that the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996.). Now this condition is deleted, but the following conditions are to be followed.

(A) imported by units approved by Director General of Civil Aviation (DGCA) in the Ministry of Civil Aviation, for maintenance, repair, or overhauling of-

(a) aircraft registered in India; or

(b) aircraft not registered in India, which are brought into India for the purpose of flight to or across India, or for the purpose of maintenance, repair or overhauling and which are intended to be removed from India within six months or for such periods as extended by the DGCA, as the case may be;

(B) the importer submits documents duly certified by the DGCA approved Quality Managers of aircraft maintenance organisations indicating such parts, testing equipment, tools and tool-kits;

(C) the importer maintains a proper account of import, use and consumption of the specified goods imported for the purpose of maintenance, repair or overhauling of aircrafts and submits such account periodically to the Commissioner of Customs in such manner as may be specified by the said Commissioner;

(D) the importer, by the execution of bond, in such form and for such sum as may be specified by the said Commissioner, binds himself to pay on demand an amount equal to the duty leviable,-

(i) on parts, tools and tool kits as are not proved to the satisfaction of the said Commissioner to have been used or consumed for the aforesaid purpose;

(ii) on the testing equipment, as are not proved to the satisfaction of the said Commissioner to have been installed or otherwise used for the aforesaid purposes, within a period of three years from the date of importation thereof or within such extended period as that Commissioner, on being satisfied that there is sufficient cause for not installing, using or consuming as the case may be, for the aforesaid purposes within the said period, allow."

There is a similar exemption in Central Excise vide Sl. No. 305 of Notification No. 12/2012-CE, dated 17.03.2012 where also similar amendment is made.

Notification No. 29/2016-Customs., Dated : April 26, 2016

Notification No. 19/2016-Central Excise., Dated: April 26, 2016