Custom Duty for Imported Goods for Job Work

[Vikas Churiwalla]

Hi,

We have a client in USA who is sending us wallpapers from Korea and China to be embroidered and then shipped to USA. We are only doing embroidery ( job work) on the paper and shipping back to the client.

Will there be any custom duty payable. If yes, is it re-claimable?

What is the best method of importing the goods?

What are the government forms that need to be pre-filled?

Does it make a difference whether my company is 100% EOU or not?

Thanks and your input will be very much appreciated.

Warm regards,

Vikas

[KASTURI SETHI]

Goods for job work can be imported free of duty on the ground that the said goods are to be exported after job work. After job work you may pay duty/GST on the value of job work done at the time of export and claim rebate.It makes no difference whether EOU or not as you are concerned with the benefit of export which are available to any unit who exports. Regarding the forms to be filled, you ate to search on internet.

[Kishan Barai]

Great reply by kasturi sir,

I would like to add something in it. While making exports make sure your shipping bill must have access value as compared to imported value file in a bill of entry during imports.

AI Summary

Duty exemption for job work imports permitted when processed goods are re-exported; duty or GST payable on job work value at export. Imports of goods for processing as job work and subsequent re-export qualify for duty-free import since the goods are for export after job work. Duty or GST may be paid on the value of the job work at export and an export rebate claimed. Documentation requirements include filing a bill of entry at import and ensuring the shipping bill at export shows an assessable value consistent with import records. The entitlement to export-related benefits is not exclusive to EOUs and applies to any exporting unit complying with customs and export documentation.