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)

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.