Duty Free..??

[Chintan Shah]

Dear All,

we import raw material under advance licence (Duty Free), this material we transfer to our another branch...

now let me know... is there any duty charged on transfer of this material to our another branch....???

[YAGAY andSUN]

You can't transfer the material which was procured against Advance Authorization for One Unit to Another Unit.  It is an offence.  Duty, Interest and penalty would be paid by you.  Further, DGFT can put your organization in the DEL Category and deny to issue Licences in the future.

AI Summary

Prohibition on transfer of duty-free imports: intra-company transfers trigger duty, interest, penalties and possible licence denial. Transfers of inputs imported under an Advance Authorisation to another unit breach the licence conditions. Such inter-unit transfers attract duty on the goods, together with interest and penalty, and may prompt administrative sanctions including denial or suspension of future licences.