Advise require on Input as such (Export) to Subsidiary company

[SANDESH SHINDE]

Dear Sir,

Please advise on the following queries :

1)If we are purchasing imported Raw material and then we are exporting the same Input as such to our Subsidiary company whether we can carry out such Activity and to carry out such activity whether we can re-export such material directly to the said country.

2)Further if we are importing the said material to our Factory and from there we will export such Input as such without payment of duty under LUT, here whether we can avail the CVD and Addl CVD credit paid at the time of import and utilised the same for the domestic clearances.

Thanks and Regards.

AI Summary

Clarification on Exporting Imported Materials: Trading vs. Manufacturing for Duty Benefits and Credit on Domestic Clearances An individual sought advice on exporting imported raw materials to a subsidiary without paying duty and whether they could avail credit for domestic clearances. A respondent clarified that such activities are considered trading and not eligible for export benefits unless the inputs are used for manufacturing final products that are exported. Another contributor mentioned that direct export from the overseas supplier is possible without bringing inputs into India, emphasizing the importance of documentation. The discussion highlighted the fine line between trading and removal, suggesting careful consideration of the facts to determine the appropriate category.