We want to send goods from our SEZ unit to our own DTA unit on stock transfer. Do we have to file bill of entry and pay customs duty? If so, what is the value at which we should pay duty? Please give details of the statutory provisions.
You have to file bill of entry as per Rule 49(1) of the SEZ Rules, 2006. As per Rule 49(2) of the said Rules, valuation of the goods and/or services cleared into DTA shall be determined in accordance with provisions of Customs Act and rules made thereunder as applicable to goods when imported into India.
Now, Rule 3(1) of the Customs Valuation (Determination of Value of Imported Goods) Rules, 2007 will not be applicable, as there is no transaction value in case of stock transfer. As per Rule 3(4) of the said Rules, if the value cannot be determined under the provisions of sub-rule (1), the value shall be determined by proceeding sequentially through rule 4 to 9. So, you proceed to Rule 4 (i.e. Transaction value of identical goods), and if that does not work, Rule 5 and so on.
In your article dated February 19, 2018 in Business Standard (“IGST rules change again for export”), you have mentioned that exporters wanting to ship on payment of IGST must guard themselves by first getting a declaration from their suppliers that they are not availing of the benefit of these notifications (i.e. notifications 48/2017-Central Tax and 79/2017-Cus, both dated October 13, 2017). We have already procured our raw materials without these declarations. How can we proceed?
You can export goods manufactured from such inputs without payment of IGST under letter of undertaking and claim refund of unutilised credit under rule 89 of the CGST Rules, 2017.
We intend to re-import some goods that we exported to a related party in 2016 in discharge of EPCG export obligation and for which we had received full payment in foreign currency. In some cases, the EPCG authorisation is redeemed and in the others we are yet to file EPCG redemption application. While exporting these goods, some consignments were on LUT and some were on excise rebate that we have received. What needs to be followed to ensure that we are fully compliant with Customs law, FTP and FEMA? What documents need to be produced at the time of import?
From the FTP and FEMA angle, I see no issues. Exported goods can be re-imported and you can make payment against the re-import.
You can also declare the same value at which you exported. Under Section 20 of the Customs Act, 1962, you have to pay the full duty as if the goods are imported. There is an exemption notification 46/2017-Cus dated June 30, 2017, which you may examine to see if you can fulfil the conditions.
Besides the usual import documents, you have to produce the export documents to show the Customs that it is a case of re-import of exported goods.
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