second hand material import under SHIS

[MUKUND THAKKAR]

Dear Experts,

My client is obtain Status holder incentive scrip against their export performance. he is importing the capital goods (second hand) . now custom is asking to get the clarification from DGFT that second hand capital goods are allowed to import under the SHIS.

in fact not anywhere is mention in FTP that SHIS holder not allow to import second hand capital goods. please if anybody have any written supporting in this regards, so my client get relief against unwanted problem.

Regards.

[Mahir S]

Dear Mukundji,

The stand taken by the Customs authorities is based on the fact that recently Director General of Foreign Trade has written a letter to a party regarding import of second hand machinery under Status Holder Incentives Scheme (SHIS).

The contention of DGFT is that, as the objectives of the SHIS scheme is upgradation of technology, therefore second-hand capital goods cannot be allowed under SHIS scheme.