Govt exempts duty on re-imports of certain goods

The Dollar Business Bureau

The Government has exempted custom duty on the re-imported goods which are exported under claim for drawback of any customs or excise duties levied by the Union, drawback of any excise duty levied by a State, for rebate of Central Excise duty, bond without payment of Central Excise duty, duty exemption scheme (DEEC/Advance Authorisation/DFIA) or Export Promotion Capital Goods Scheme (EPCG).

“The Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the goods falling within any Chapter of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)….when reimported into India, from so much of the duty of customs leviable and the whole of the additional duty, integrated tax, compensation cess leviable,” Ministry of Finance said in a notification (no. 46/2017 – Customs New Delhi), dated June 30, 2017.

However, it said that the exemption of duty on goods exported under duty exemption schemes are subject to the following conditions:

(i) DEEC book has not been finally closed and export in question is de-logged from DEEC Book; Advance Authorisation/DFIA has not been redeemed and the authorization holder has not been discharged from the export obligation by DGFT;

(ii) In case of EPCG scheme, the period of full export performance has not expired and necessary endorsements regarding reimport have been made;

(iii) The importer had intimated the details of the consignment re-imported to the Assistant Commissioner of Customs or Deputy Commissioner of Customs in charge of the factory where the goods were manufactured or the premises from where the goods were supplied and to the licensing authority regarding the fact of re-importation and produces a dated acknowledgement of such intimation at the time of clearance of goods;

(iv) The manufacturer-exporter may be permitted clearance of such goods without payment of Central Excise duty or integrated tax and compensation cess under transit bond to be executed with the Customs authorities at the port of importation, such bond will be cancelled on the production of certificate issued by the jurisdictional Customs authority about receipt of re-imported goods into their factory or the premises from where the goods were supplied.

The government also exempt duty on re-import of goods which are exported for repairs abroad, while adding that the duty of customs which would be leviable if the value of re-imported goods after repairs were made up of the fair cost of repairs carried out including cost of materials used in repairs (whether such costs are actually incurred for not), insurance and freight charges, both ways.

“The cut and polished precious and semi-precious stones exported for treatment abroad are also exempted,” the notification said.

However, duty of customs would be leviable if the value of re-imported precious and semi-precious stones after treatment were made up of the fair cost of treatment carried out including cost of materials used in such treatment, whether such costs are actually incurred for not, insurance and freight charges, both ways, it added.

In addition, the duty is also exempted on re-imports of parts, components of aircraft replaced or removed during the course of maintenance, repair or overhaul of the aircraft in a Special Economic Zone (SEZ) and brought to any other place in India.

“The exemption shall not apply to re-imported goods which had been exported by a 100% export-oriented undertaking or a unit in a Free Trade Zone and from a public warehouse or a private warehouse appointed or licensed under the Customs Act, 1962 (52 of 1962),” the notification said.

The exemption will be applicable to the exports for which order permitting clearance and loading under Section 51 of the Customs Act, 1962 has been given on or before June 30, 2017, it added.

The notification shall come into force with effect from the July 1, 2017.

In another notification (No. 47/2017 – Customs), the government exempted goods falling within the Fourth Schedule of the Central Excise Act, 1944 (1of 1944) when re-imported into India, from so much of the duty of customs leviable thereon which is specified in the First Schedule of the Customs Tariff Act, 1975 (51 of 1975) and the whole of the additional duty leviable thereon under subsections (1), (3), and (5) of section 3 of the said Customs Tariff Act, as is in excess of the amount indicated in the corresponding entry in column (3) of the said Table.