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Regarding re-import of goods of Indian origin which were earlier exported
for the purpose of repairs, re-conditioning, re-processing, refining, remaking
etc. and re-export thereafter
Circular No. 127 dated 14th December 1995
I am directed to
refer to notification No. 158/95-Customs dated 14.11.1995 issued in supersession
of notification No. 98/ 95-Customs dated 26.5.95 for exempting from the whole of
duties goods manufactured in India, when re-imported into India for the purpose
of repairs, reconditioning, reprocessing, refining, remaking or similar process.
As may be seen the new notification considerable enlarges the scope of processes
carried out for the purpose of re-export of re-imported goods of Indian origin.
New notification provides for due accountal of the goods during such processes
as well as it provides for exemption of duty on loss of quantity of re-imported
goods, if any, during such process.
2. The
new notification No. 158/95-Customs dated 14.11.95 basically contains the
following situations-
(1) It exempts the goods
manufactured in India and parts of such goods whether of Indian or foreign manufacture which were earlier exported from
India re-imported into India for the purpose of repair or for
reconditioning, from the levy of duty of customs including additional duty of customs subject of the following
conditions -
(i)
the re-importation takes place within three years from the date of
exportation.
(ii) after the process of repairs or reconditioning the
goods are re-exported within sixmonth
of the date of re-importation of such extended period not exceeding a furtherperiod of six months as Commissioner of
Customs may allow.
(iii)
the identity of goods in established subject to satisfaction of Assistant
Commissionerof Customs.
(iv)
the importers have to execute a bond undertaking at the time of
importation to-
(a) export the goods after
repairs or reconditioning within the stipulated period.
(b) pay on demand in the
event of his failure to comply with the conditions of notification, the
difference between the duty levied at the time of re-import and the duty
leviable on such goods at the time of re-importation but for the exemption given
above.
(v) the Board desires that the
value of the bond should be approximately the amount of duty likely to be
involved. The value of bank guarantee shall 25% of this bond.
(2) The notification exempts
goods manufactured in Indian and re-imported for the purpose of (a)
reprocessing; or (b) refining;
or (c) remaking, etc. subject to the following conditions -
(i)
Such re-importation takes place within one year from the date of
exportation.
(ii)
Goods are re-exported within six months of the date of re-importation or
suchextended period not
exceeding period into exceeding a further period of six monthsas the Commissioner of Customs may allow;
(iii) The
Assistant Commissioner of Customs is satisfied as regards identity of the goods.
(iv)
the importer executes a bond of the effect that-
(a) such processes shall be carried out in a
factory under Central Excise controlfollowing the procedure laid down under rule
173 MM of Central Excise Rules,1944
or in a customs bond u/s 65 of the CustomsAct,1962.
(b) he shall maintain a due amount of the said
re-imported goods and shall produce itduty certified by the officer of Central
Excise or Customs.
(c) in case any waste or scrap arises during such
process either the same is to bedestroyed before the officer, of Central Excise or Customs or to clear
it onpayment of appropriate amount of customs duty leviable on such waste or
scrap.
(d) the importer in event of his failure has to
pay an amount equal of the differencebetween the duty leviable on such goods at the
time re-importation but for theexemption
contained therein.
(v) the Board desires that the value of the Bond should
be approximately the amount ofduty
likely to be involved. The value of bank guarantee shall be 25% of this Bond.
(vi)
the loss in quantity burring such process is exempted from customs duty
andadditional customs duty.
3. The main
difference in the earlier notification 98/95-Customs dated 26.5.95 and the
present notification 158/95-Customs is that the earlier notification provided
for the cases in which the goods are re-imported for the purpose of repairs and
re-export but the new notification has enlarged the scope of process to be
carried out. It now covers not only repairs but the processes like
reconditioning, reprocessing, dyeing, refining, remaking or similar process. It
covers goods like dyes, chemicals, pharmaceuticals etc. which were earlier
exported and required to be reimported for carrying out any one of the
above-mentioned processes. Period of one year reduced to six months. This
restriction would apply prospectively only & does not apply for imports
already done.
4. The
new notification even covers situation like the goods re-imported for the
purpose of changing the packing of goods earlier exported. It also covers the
remaking of tablets of medicines, which got damaged during transportation or
otherwise. It also covers the cases to re- import of chemicals, which are
required to be reprocessed.
5. The
provisions of this notification would also apply in case of re-import goods
which were earlier exported under any scheme like DEEC, 10% EOU etc., subject to
fulfillment of the conditions prescribed in the notification.
6. It
is expected that with the new notification there should not be any difficulty in
clearance of goods re-imported for the purpose of re-export after carrying out
certain processes. The aforesaid notification and their implication may be
immediately brought to the notice of departmental officers and also the trade by
issue of suitable standing order/ notices. In case of any difficulty in
implementation of notification the Board may be suitably informed.
This Circular
rescinds earlier Circular No. 61/95 dated 6.8.95 issued on the same subject.
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