Difficulties in clearance of intermediate goods duty free for use in export goods where said intermediate goods and the export goods are manufactured within the same factory.

Manufacturers Can Clear Intermediate Goods Duty-Free for Exports Without Chapter X Procedures, Says Board Clarification.

The circular addresses difficulties faced by manufacturers in clearing intermediate goods duty-free for use in export goods when both are produced within the same factory. The Board received complaints about the denial of duty-free clearance due to the inability to follow Chapter X procedures, such as issuing CT-3 certificates. The Board clarifies that these procedures primarily apply when intermediate goods are sourced externally. It concludes that duty-free clearance should not be denied if the manufacturer can prove the goods are used for export purposes. The instructions aim to facilitate exports and resolve pending cases accordingly.