Don’t miss the latest developments in business and finance.

'Goods cleared on payment of duty can be brought back to any factory'

Image
T N C Rajagopalan
Last Updated : Jan 20 2013 | 3:11 AM IST

We manufacture goods bearing a brand name or sold under a brand name and falling under chapter 61, 62 or 63 (except 6309 and 6310). We bring back goods cleared on payment of duty to the same factory from where we cleared the goods and after remaking, reconditioning, repacking, etc., clear them without duty payment, availing exemption under notification no. 31/2001-CE dated 24.03.2011. Can we use the notification to take the goods to any of our other factories instead of bringing them back to the same factory?
The latest amendment to the above notification allows you to bring the returned goods to any registered premises or factory of the brand name owner within one year of initial removal and avail the exemption on the basis of his own self-certification. The amending notification (8/2012-CE dated 16.03.2012) also says how he should compute the 10 per cent value limit mentioned in the notification.

The exemption notification no. 18/2009-CE dated 7.7.2009 has been rescinded through notification no. 17/2012-CE dated 16.3.2012. What is the duty now payable on the goods covered under that notification?
You may refer to notification no. 18/2012-CE dated 16.3.2012, which contains most of the items covered under the rescinded notification that you have mentioned, and the other rescinded notifications 2/2008-CE dated 1.3.2008 and 59/2008-CE dated 7.12.2008 also.

We want to procure items like tags, labels, printed bags, stickers, belts, buttons or hangers from an Export Oriented Unit for export in terms of Para 6.9(g) of the Foreign Trade Policy (FTP) 2009-14. Can we get them without duty payment?
Notification no. 31/97-CE(NT) dated 2.2.2007 prescribes the detailed procedures for procurement of such goods against CT-1 and export under ARE-2 form. This notification refers to Para 6.9(h) of the FTP 2004-09 but this seems to be a case of failure to update the notification. The excise authorities should allow you to use the procedure even for procurement under Para 6.9(g) of FTP 2009-14.

My son wants to send a small gift from Canada. Will the articles be subject to import duty?
Goods imported through postal parcels, packets and letters are fully exempted from import duty if the duty payable is not more than Rs 100. For costlier items, duty will be payable.

Can you explain the recent amendments made to the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods), 1996?
Notification no. 22/2012-Cus(NT) dated 17.3.2012 amends the said Rules to enable the importer obtain eligibility certificate for a period of one year instead of consignment-wise or quarterly certificate. Secondly, it permits re-export of unused/rejected goods imported at concessional duty with the prior permission of the jurisdictional excise authorities, subject to the conditions that re-export takes place within six months from the date of importation and the re-export value is not less than the value of the imports. Maintenance of separate accounts will not be necessary if the records maintained by the importer contain the requisite information.

Business Standard invites readers’ SME queries related to excise, VAT and exim policy.
You can write to us at
smechat@bsmail.in  

Also Read

First Published: Mar 20 2012 | 12:45 AM IST

Next Story