We had imported some goods, which have been re-exported for repair and return. However, out of the total quantity, some of the goods are beyond repair. What is the procedure for the destruction of these beyond-repair goods so as to close the GR waiver issued by the bank in support of the above re-export?
No specific procedure is laid down for such cases. In my opinion, if you submit to your bank a certificate from the repairing agency that the goods are beyond repair and a certificate from an independent agency regarding destruction of the goods along with your explanation of the case, the GR waiver can be closed by your bank on the basis of the documents and your explanation. Of course, the bank may expect you to take up with the original suppliers the fact of supply of defective goods and to recover any money remitted towards import of defective goods.
We are a 100 per cent EOU manufacturing pressure valves. We imported capital goods (without payment of duty under EOU scheme) under chapter 9031 (valve testing equipment) in the month of November 2013. Now we wish to transfer that equipment to our sister concern in Gujarat. Kindly guide us on how the valuation of the testing machine will be done and what all duties will be required to be paid by us?
As per Para 24.1 of Customs Manual 2014, EOUs are allowed to sell surplus/unutilised goods and services, imported or procured duty free, into DTA on payment of customs duty on the value at the time of import/procurement and at rates in force on the date of payment of such duty, in case the unit is unable, for valid reasons, to utilise the goods. The permission for such DTA sale is given by the jurisdictional Assistant/Deputy Commissioner of Central Excise and Customs.
Ours is a small cottage industry producing shawls and stoles. In our process, we consume handmade laces and embellishments as stores items. We propose to import these items from China/Bangkok/France. We want to know the relevant chapter of the Customs Tariff for levy of import duty and the rates on which import duty is payable. We are given to understand that there is no import duty on hand-made laces. Please give your opinion.
Handmade lace is covered under the tariff line 58043000. The basic duty is 10 per cent or Rs200 per kg., whichever is higher. Additional Duty (CVD) is nil as per Central Excise Tariff. Cess is exempted by S.No. 1 of notification no. 69/2004-Cus dated 09.07.2004 and notification no. 69/2007-Cus dated 12.05.2007. Additional duty of 4 per cent (SAD) is exempted by S.No. 12 of notification no. 21/2012-Cus dated 17.03.2012.
Sometimes the buyer asks the exporter for replacement of goods due to some defects. The problem faced is that it is not economically viable or practical to re-import the defective goods. Please advise if there is any Customs Notification which takes care of such a situation.
As per Para 2.37 of FTP, Customs will allow export of replacement goods so long as they are not in the restricted list of ITC (HS). As per Regulation 4(j) of Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, GR/SDF/EDF form need not be furnished for replacement goods exported free of charge.
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No specific procedure is laid down for such cases. In my opinion, if you submit to your bank a certificate from the repairing agency that the goods are beyond repair and a certificate from an independent agency regarding destruction of the goods along with your explanation of the case, the GR waiver can be closed by your bank on the basis of the documents and your explanation. Of course, the bank may expect you to take up with the original suppliers the fact of supply of defective goods and to recover any money remitted towards import of defective goods.
We are a 100 per cent EOU manufacturing pressure valves. We imported capital goods (without payment of duty under EOU scheme) under chapter 9031 (valve testing equipment) in the month of November 2013. Now we wish to transfer that equipment to our sister concern in Gujarat. Kindly guide us on how the valuation of the testing machine will be done and what all duties will be required to be paid by us?
As per Para 24.1 of Customs Manual 2014, EOUs are allowed to sell surplus/unutilised goods and services, imported or procured duty free, into DTA on payment of customs duty on the value at the time of import/procurement and at rates in force on the date of payment of such duty, in case the unit is unable, for valid reasons, to utilise the goods. The permission for such DTA sale is given by the jurisdictional Assistant/Deputy Commissioner of Central Excise and Customs.
Ours is a small cottage industry producing shawls and stoles. In our process, we consume handmade laces and embellishments as stores items. We propose to import these items from China/Bangkok/France. We want to know the relevant chapter of the Customs Tariff for levy of import duty and the rates on which import duty is payable. We are given to understand that there is no import duty on hand-made laces. Please give your opinion.
Handmade lace is covered under the tariff line 58043000. The basic duty is 10 per cent or Rs200 per kg., whichever is higher. Additional Duty (CVD) is nil as per Central Excise Tariff. Cess is exempted by S.No. 1 of notification no. 69/2004-Cus dated 09.07.2004 and notification no. 69/2007-Cus dated 12.05.2007. Additional duty of 4 per cent (SAD) is exempted by S.No. 12 of notification no. 21/2012-Cus dated 17.03.2012.
Sometimes the buyer asks the exporter for replacement of goods due to some defects. The problem faced is that it is not economically viable or practical to re-import the defective goods. Please advise if there is any Customs Notification which takes care of such a situation.
As per Para 2.37 of FTP, Customs will allow export of replacement goods so long as they are not in the restricted list of ITC (HS). As per Regulation 4(j) of Foreign Exchange Management (Export of Goods and Services) Regulations, 2000, GR/SDF/EDF form need not be furnished for replacement goods exported free of charge.
Business Standard invites readers' SME queries related to excise, VAT and exim policy.
You can write to us at smechat@bsmail.in