TaxTMI 
TaxTMI 
TaxTMI 
If you have been exporting for some time, you already know this feeling. The goods are shipped, documents are filed, export benefits are claimed and life moves on. Then suddenly, out of nowhere, the buyer mails you saying the goods are rejected. Sometimes it is a quality issue, sometimes the buyer’s project gets cancelled and sometimes they just change their mind. The goods are sent back to India and the moment they land, Customs asks for import duty. At this stage, most exporters ask a very genuine question. Why should duty be paid again on goods that were already exported from India?
This is exactly where Notification No. 45/2017-Customs steps in, though sadly, many exporters do not even know that such a provision exists.
Why Notification 45/2017 Exists in the First Place
The government understands that export business comes with commercial risks. Not every export order ends successfully. When goods are returned after export, they are not new imports. They are the same Indian goods coming back because the export transaction failed. Notification 45/2017-Cus was introduced to avoid this unfair situation of double taxation. It allows duty-free re-import of goods which were earlier exported from India and later returned for genuine commercial reasons.
So Does That Mean Re-import Is Always Duty-Free
Not exactly. The exemption works on a very simple give-and-take logic. When you exported the goods, you probably claimed some benefits. It could be duty drawback, IGST refund, RoDTEP credits or benefits under schemes like EPCG. If you want Customs to waive the import duty when goods come back, you must first return everything you claimed earlier.
In simple terms, if you give back the export benefits, Customs will not charge import duty. If even one benefit is missed, the exemption can be denied.
The Time Limit That Exporters Often Ignore
One of the most common mistakes exporters make is not paying attention to the time limit. Notification 45/2017 allows re-import within three years from the date of export. In genuine cases, this period can be extended up to five years, but that extension is not automatic and needs proper approval. Once this time limit is crossed, the exemption is lost completely, no matter how genuine the case is.
This is why acting quickly when goods are returned is extremely important.
Paperwork and Intimation Matter More Than You Think
Many exporters assume that since the goods are clearly identifiable as their own exports, Customs will automatically allow exemption. In reality, procedure matters a lot. At the time of filing the bill of entry for re-import, you must clearly claim exemption under Notification 45/2017. You must also establish a clear link between the exported goods and the re-imported goods using shipping bills, invoices and other documents.
Where export incentives were claimed, proper intimation and compliance with DGFT or other authorities is equally important. Customs systems today are well connected, and even small mismatches are easily flagged.
Where Things Usually Go Wrong
In practice, most disputes arise because exporters miss deadlines, forget to reverse one of the export benefits or fail to inform Customs properly at the time of re-import. Sometimes exporters themselves are unaware that they had claimed multiple incentives. Unfortunately, Customs will not overlook these mistakes.
Why This Notification Is a Big Deal for Exporters
Despite being extremely useful, Notification 45/2017 is still underutilised. Many exporters end up paying customs duty simply because they assume it is unavoidable. For high-value consignments, this can mean paying lakhs of rupees unnecessarily. A basic awareness of this notification can save both money and litigation.
Final Thoughts
Re-import of rejected export goods does not automatically mean customs duty has to be paid. Indian Customs law provides a clear and fair mechanism through Notification No. 45/2017-Cus. If timelines are respected, export benefits are fully reversed and procedures are followed carefully, duty-free re-import is very much possible. For exporters, this is not just a legal provision but a practical relief that deserves more attention.