RE-export of imported goods on which BCD IS EXEMPTED

[Guest]

Dear Sir,

Please advise us the procedure to re-export of such imported goods on which Basic Custom Duty is exempted. Further please also advise us the credit availed of CVD and ADDl cvd whether it will be required to reverse such credit

[JSW CEMENTLIMITED]

Kindly go through the below notification No.27/2008-Customs New Delhi, the 1st March, 2008

[Raghunandhaanan rvi]

Dear Sir,

To my knowledge reversal of credit does not arise If

1. Export of imported goods under Bond / LUT without duty

2. It is settled law that export of goods are tax free

3. CBEC Circular No. 345/2/2000 TRU dated 29.08.2000 may be referred

4. You may also refer CESTAT Ruling 2016 (335) ELT 104 (Tri-Mumbai) = 2016 (3) TMI 395 - CESTAT MUMBAI in this regard.

Thanks

AI Summary

Export under Bond/LUT preserves customs duty exemption and avoids reversal of countervailing duty credit on re-exported imports. Re-export of imported goods with Basic Customs Duty exemption is permissible where exports are made under bond or Letter of Undertaking, following the applicable customs notification and bond/LUT procedures. In such cases, reversal of countervailing duty and additional CVD credit generally does not arise because exports under bond/LUT are treated as tax neutral; relevant circular guidance and tribunal authority have been cited for this treatment.