Duty free import against invalidation letter

[Asked by Guest]

Dear All

We are a manufacturing unit registered under Central Excise and Customs, We manufacture Square Fibre Drum

We import our raw material - Kraft paper, with paying complete duty and do take the Cenvat benefit

Our product is mainly used for exports by our customer, they pack there product in our Drums and export

We wish to avail the benefit by saving the import duty

Every import container contains material for many different customers

Have been advised that if we take Invalidation letter from our Customers we can save on the import duty to that extent

Can some one please advice on the same as well as guide us the procedure to be adopted

Thank you for the support and guidance

Thanks & Regards

Rahul Chhajed

AI Summary

Duty-free import via invalidation letter lets intermediate suppliers import inputs and supply or export under Advance Authorisation.
Advance Authorisation or DFIA for intermediate supply may be issued only after invalidating the ultimate exporter's authorisation for direct import of the item; the invalidation letter is provided to the ultimate exporter, the intermediate supplier, and the Regional Authority. The intermediate supplier may supply to the ultimate exporter, supply directly to the port for export with the shipping bill in the name of the ultimate exporter and the intermediate supplier endorsed, or export directly. Regional Authorities consider applications based on tie-up arrangements.