Reimport after 1 year: Need permission under notification 45/2017-Cus

Exporters can reimport goods after one year under notification 45/2017-cus by surrendering duty drawback and rodtep benefits, subject to customs approval

We had exported our manufactured goods by availing duty drawback and Rodtep. The buyer had paid for the goods. Now, he wants to return the goods because he is unable to resell the goods. However, more than one year has passed since the date of exports. Can we re-import the goods by only surrendering the drawback and Rodtep benefits? If yes, please give the specific provisions. 

Yes. You can re-import the goods under notification no.45/2017-Cus dated 30th June 2017. You must surrender the duty drawback and Rodtep as per S.No. 1(a) and 1(f) of the Table given in the notification. The clause (c) at the first proviso prescribes the condition that in the case of goods exported under any scheme of Chapter 4 of the FTP, the re-import must take place within one year of exportation or such extended period not exceeding one more year as the Principal Commissioner of Customs or Commissioner of Customs, as the case may be, on sufficient cause being shown for the delay may be allowed. You may seek necessary permission as re-import is after one year of exports and claim the benefit of the said exemption no. 45/2017-Cus dated 30th June 2017.

 

We are importing a machine from a company in China but the supplier wants us to send the money to its parent company in Japan? Is it possible? 

Yes. Para B.7 of the RBI Master Direction no. 17/2016-17   dated 1st January 2016 (as amended) deals with ‘third party payments for import transactions’. Five conditions are prescribed for such payments to a third party. First, irrevocable purchase order/tripartite agreement should be in place. However this requirement may not be insisted

upon in case where documentary evidence for circumstances leading to third party payments/name of the third party being mentioned in the irrevocable order/invoice has been produced. Second, the AD bank should be satisfied with the bonafides of the transactions and should consider the Financial Action Task Force (FATF) Statement before handling the transactions. Third, the Invoice should contain a narration that the related payment has to be made to the (named) third party. Four, the bill of entry should mention the name of the shipper as also the narration that the related payment has to be made to the (named) third party. Five, the importer should comply with the related extant instructions relating to imports

including those on advance payment being made for import of goods.

 

We have obtained an EPCG authorisation. We want to purchase capital goods from indigenous sources in accordance with para 5.07 of the FTP.  We want to know how the duty saved will be calculated, so that we will know the export obligation amount. 

As per Para 5.21 (c) of the HBP, ‘In case of domestic sourcing of capital goods through invalidation letter/ARO, the duties,

taxes and cess payable shall be with reference to the notional Customs duties/taxes/cess saved on the FOR value of capital goods (including spares, jigs, fixtures, dies and moulds).’ 

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