Traders must classify imports of lab chemicals under appropriate heads

We refer to Para 5.15(c) of HBP 2023, which was amended by the recent Public Notice no.15 dated 25th July 2024. Will this amendment apply to EPCG authorisations issued in the previous policy periods also?

The amendment will be applicable to EPCG authorisations issued during the 2015-20 policy period also, as made clear by the newly introduced Para 5.15(e) of the HBP. For the EPCG authorisations issued during the period before 1.4.2015, the provisions of Para 5.13(d) of the HBP will apply. 

We had been importing laboratory chemicals under the heading 9802 and selling them to various private and public research institutions. We are now told by our Customs brokers that laboratory chemicals under the 9802 can be imported only by actual users and not by traders. What is the correct position?
 

The note 3 to Chapter 98 was amended through notification no.62/2024-Customs (N.T.) dated  19th September 2024 restricting the scope of the heading 9802 for imports by only the actual users in packaging not exceeding 500 grams or 500 milliliters. Consequently, laboratory chemicals imported for trading, onward sale etc. regardless of the quantity and pack size etc. and imports by any person in packaging of more than 500 grams or 500 milliliters should be classified in the appropriate chapters/headings in the First Schedule to the Customs Tariff Act, 1975.

We have been importing our goods on CIF basis so far. In order to save on freight, we are now considering importing on ex-works (Ex-W) basis. What problems can we expect due to this change?

In an Ex-W contract, the obligation of the seller is to make the goods available at the named place and give notice to the seller. The obligation of the seller is to take delivery at the named place. All the costs and risks thereafter have to be borne by the buyer.  So, the risk of any variation in costs of loading the goods onto a conveyance, inland transportation, export duties/taxes and customs clearance etc. in the exporting country and the costs of ocean transportation will have to be borne by the buyer. The marine insurance costs and risks of any variation in the costs of insurance also will have to be borne by the buyer.  If any documents like export license/permit, pre-shipment inspection certificate, security related documents or any other documents are required for customs clearance in the exporting country, the seller must assist the buyer in getting those documents but the costs must be borne by the buyer. The buyer has also to contend with any risks of delay, after taking delivery of the goods. 

 Our bankers were closing many IDPMS entries relating to import of samples against our CA certificates that these were sent free of cost through couriers and so, no remittances need be made against such small value imports but of late, they are reluctant to do so. How to close such entries?
 

You may seek RBI permission through your bankers explaining each case.  


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