We are registered dealer under central excise for imported goods. We have imported 200 kg oil in 25kg packing. While selling the same to customers we are passing on ACD & CVD. Now we want to break one packing of 25kg and use 5kg of the material for retail sale in small packs.
We want to know if we do so
1) Can we be able to pass on ACD & CVD for the rest of material (175kg) to the customers who are purchasing the same from us under dealer import code.
2) Can we be able to pass on ACD & CVD for balance 20kg (from the packing which is opened) to the customers who are purchasing the same from us.
Regards
Sachin
Repackaging Imported Sandalwood Oil as Manufacturing: Dealers Can Pass on ACD and CVD Credits Per Central Excise Tariff Act. A registered dealer under central excise for imported goods inquired about the implications of repackaging imported sandalwood oil. They imported 200 kg in 25 kg packs and plan to use 5 kg for retail sale in smaller packs. The main concern is whether they can pass on Additional Customs Duty (ACD) and Countervailing Duty (CVD) for the remaining 175 kg and the 20 kg from the opened pack. Responses indicated that repackaging constitutes manufacturing under the Central Excise Tariff Act, requiring excise registration and procedures. However, they can pass on ACD and CVD credit for the repacked goods. (AI Summary)
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