Imported free of cost material for job work in EOU

[Guest]

Sir / Madam ,

We have a customer from USA who has sent us USA origin raw material free of cost to our EOU unit for job work. We will add indian origin raw material and produce final product . We will eventually export this product to customer . He wants us to only charge for the Indian origin raw material and processing cost .

How do we proceed on this situation as our excise officers are not aware of any such situation and donot know what to do and how to clear the goods

pl let me have your expert opinion .

regards

Rajendra Rane

Mumbai 9322221969

AI Summary

Entity Seeks Guidance on Excise Duties for Export Under Rule 10A; Experts Advise on Valuation and Compliance. An entity in India received raw materials free of cost from a US customer for job work in an Export Oriented Unit (EOU). The final product, incorporating Indian raw materials, will be exported back to the US. The entity seeks guidance on handling excise duties, as local officers are unfamiliar with such cases. Experts advised following Rule 10A of the Central Excise Valuation Rules, 2000, and relevant notifications, emphasizing that transaction value must include all raw materials and processing costs. This ensures correct foreign exchange receipt, even though duty isn't paid for export. Another participant inquired about the practical execution of this process.