RSP ON IMPORT OF GOODS

[NAUSHERAWAN SM]

We are manufacturer of Parts and spare of Motor vehicles. One of components i.e. rubber items importing and assembling in the Motor vehicle parts for export. Let me know whether RSP will be applied for import of components which will be fitted in finished goods for export. The custom's officer of Kolkata has detained our goods for payment of excise duty on RSP.

Thanks,

S.M.Nausherawan

AGM (RSB Transmissions (I) Ltd., Jamshedpur)

[YAGAY and SUN]

No, since these parts shall be used in manufacturing of finished goods and not for the purpose of selling as such. You can make representation to the concerned officer in this regard, show the evidence, BOM, manufacturing process flow chart, and if possible a bond.

On the export you can also get the AIR Duty Drawback or Brand Rate Fixation.

[CSSANJAY MALHOTRA]

Dear Mr. SMN,

What's the item of import and chapter ID????? If the product is leviable to duty on RSP based as per Notf No 49/2008-CE dated 24.12.08, then the officer is correct as CVD leviable is equal to Excise Durty rate. You can avail the duty credit and afterwards clear your goods on payment of duty under rebate..... No tax cost for you in that scenario.

[YAGAY and SUN]

If spare parts are being imported for to be used in manufacturing of finished goods on which duty is payable/paid then such spare parts shall not come under RSP regime as packing, repacking, labelling relabelling shall not be happen to make such spare parts marketable and hence would not come under Section 2 f iii and Schedule III of the C.E.Tariff.

[Ganeshan Kalyani]

Healthy discussion. Enriched my knowledge. Thanks experts. 

[Kishan Barai]

Retail Sale Price is generally not applicable for imports of components used for manufacturing.

AI Summary

Retail Sale Price applicability to imported components - generally not applied when parts are used in manufacturing; use documentation and rebate remedies.
Retail sale price provisions generally do not apply to imported components that are incorporated into finished goods during manufacturing rather than sold as such; support this position with bill of materials, manufacturing flow charts and, if needed, a bond, make representation to the officer, and on export avail duty remission mechanisms such as duty drawback or credit. If an item is specifically covered by an RSP-based excise notification, CVD equal to excise may be leviable but rebate or duty credit remedies remain available.