Can you inform us how much samples we can import free of customs duty?
Customs exemption notification no. 154/94 dated 13.07.1994 has four entries for samples. The first entry relates to samples that are exempt from import duties under and in accordance with the International Convention to facilitate the importation of commercial samples and advertising material drawn up at Geneva and dated the 7th day of November, 1952. The second entry relates to samples imported as personal baggage by bona fide commercial travellers or businessmen, or imported by post or by air. Here the limit is Rs 300,000 or 50 numbers in a 12-month period. The third entry relates to prototypes of engineering goods imported as samples for executing or for use in connection with securing export orders. Here, if the value exceeds Rs 10,000, the sample must be re-exported within nine months. The fourth entry relates to bona fide commercial samples and prototypes imported by post or in an aircraft, or by courier service. Here, the limit is Rs 10,000. There are conditions against the entries that you may refer to in the notification text.
Are there any restrictions on export of warehoused goods from customs bonded warehouse to neighbouring countries?
In view of the apprehension that warehoused goods when exported from India to certain neighbouring countries are likely to be smuggled back to India, the government has placed certain restrictions through notifications 45, 46 and 47, all dated 1st February 1963, issued in exercise of powers conferred by Section 69(2) of the Customs Act, 1962. While the said notification no. 45 relates to exports to Nepal and Bhutan, notification 46 deals with export of warehoused goods in vessels of less than 1,000 tons and notification 47 deals with taking specified goods on board as stores on any foreign-going vessel of less than 200 tons.
We are an export oriented unit (EOU). We want to have an additional manufacturing facility under the same Letter of Permission (LoP). Can we do it?
As per Para 6.32(7) of the Handbook of Procedures, Vol. 1 (HB-1), the Development Commissioner has the powers to permit a change of location from a place mentioned in the LoP to another, and/or include an additional location, provided that no change in other terms and conditions of approval is envisaged and that the new location is within the territorial jurisdiction of the Development Commissioner. As per Para 6.33 of HB-1, the Board of Approvals (BoA) may consider a change of location of EOU unit from the place mentioned in the LoP to another, and/or to include an additional location outside the territorial jurisdiction of the original Development Commissioner, subject to such conditions as BoA may decide.
Can we club two advance authorisations that have expired?
As per Para 4.20.2 of HB-1, the clubbing facility is available only for advance authorisation(s) where there is a shortfall in fulfilment of the export obligation, and which is sought to be clubbed with an advance authorisation(s) which is valid for imports.
Business Standard invites readers’ SME queries related to excise, VAT and exim policy. You can write to us at smechat@bsmail.in