Re-export of Imported Material

[GANESH IYER]

Sir

One of our esteemed customer want to export material against import. The material was imported during the month of May-2016 and bonded the same at JNPT. The unit price at the time of import was @ $ 11.32 and the total quantity was 2704 Pieces. As there is no local orders for the subject material in the market and they got an export order from UAE at a unit price of $11.27 Per Piece, they decide to execute the subject export order.

We have approached JNPT customs for the necessary Permissions for the re-export and they have raised query regarding the value of the exporting price is less compared to the imported price.The variation in price is very negligible ie $0.05 Per Unit totalling to $ 135.20 ( 2704* $0.05) . The consignment is very critical to the customs and the same should reach UAE before 28th of this month otherwise the UAE customer will cancel this order too.

Please revert with your valuable suggestions regarding custom valuation and FEMA regulations to enable us to clear this shipment

AI Summary

Customer Plans Re-export of 2016 Imports Amid Valuation Queries; Justification Letter Advised for Customs Compliance A customer intends to re-export material imported in May 2016, stored at JNPT, due to lack of local orders. The export order from UAE offers a unit price slightly lower than the import price, raising customs queries about the valuation difference of $0.05 per unit. The shipment must reach UAE by the end of the month to avoid order cancellation. Respondents suggest that re-export from a customs bond is permissible and advise providing a justification letter to customs. They foresee no issues with FEMA regulations and recommend using a customs broker to facilitate the process.