DUTY EXEMPTION PROCEDURE FOR IMPORTED GOODS MEANT FOR RE-EXPORT

[ZIAULLAH THIRUVALLUR]

Dear Sirs,

I am a manufacturer of beverages. I am importing containers, bottles, pouches (packing material), etc and re-exporting after filling them with beverages. Thereby, the imported goods serve as a packing material for the goods being exported.

I hold a Registration Certificate from Central Excise and Customs. I am not holding any advance license. Can anyone please explain me how to overcome the duty payable at time of import. I am prepared to submit a Bond or Letter Of Undertaking or Bank Guarantee or any other requirements. Please advise me of the procedure.

Many Thanks,

M/s United Agro.

[YAGAY andSUN]

You may consider following Rules to solve your query or avail the Duty Drawback on packing material when re-exported.

Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996

[ZIAULLAH THIRUVALLUR]

Dear Sir (YAGAY AND SUN),

Draw back is fine. But, I am looking at importing without paying any duty against bond or bank guarantee.

Is that possible under this notification - Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996?

Kindly advise.

With Best Regards,

M/s United Agro.

[Mahir S]

Yes sir, please go through the above Customs Rules, 1996 and thereafter you may take further advise from the Jurisdictional Assistant Commissioner in the matter.

[KASTURI SETHI]

SH.ZIAULLAH THIRUVALLUR,

In addition to above, you have three options:-

1. Advance License scheme

2. Free Trade Agreement (Search on google)

3. Notification No.12/2012-Customs

[CSSANJAY MALHOTRA]

Dear Mr. ZIAULLAH,

Agreed with Sh. Kasturi ji, Yagay & Sun & Mr. Mahir as to availing the benefit of Duty Drawback/ FTA/Notitication No. 12/2012

Advance Licence is not applicable for packing material.

Please note that the final product is beverages in your case which include the cost of packing material and NOT THE PACKING MATERIAL EXPORT.

[Suryanarayana Sathineni]

Dear All,

To avoid fulfilling various procedural requirements, it is better to import the packing material on payment of duty and claim rebate of the duty paid on the export product together with DBK.

Regards

suryanarayana

AI Summary

Duty exemption for packing material: consider concessional import rules, duty drawback, FTA or alternative notifications. Importer of packing materials for re exported beverages may pursue Duty Drawback, concessional import under the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996, or relief under specific customs notifications; Advance Licence is not applicable for packing material. Security such as a bond, Letter of Undertaking or bank guarantee may be required where concessional treatment is allowed; alternatively, pay duty and claim rebate with drawback. Consult the jurisdictional assistant commissioner for procedural requirements.