Re Export of Imported Goods

[AnilKumar Vyas]

Dear Experts,

Thanks for your valuable suggestion ...............

We have imported a machine in March-2015, Now we want to export it for repair purpose to Supplier.

After Repair we will import it. Please suggest complete procedure for Re Export and Import.

Regards

[YAGAY andSUN]

Please check Section 25A of the Customs Act as inserted w.e.f. 29-03-02018.

[Ganeshan Kalyani]

You have to maintain all connected documents which proves that imported machine is sent for repair and received after repair. Otherwise receiving repaired machine would be considered as fresh import and duty will have to be paid.

[DR.MARIAPPAN GOVINDARAJAN]

25A. Where the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification, exempt such of the goods which are imported for the purposes of repair, further processing or manufacture, as may be specified therein, from the whole or any part of duty of customs leviable thereon, subject to the following conditions, namely:-

(a) the goods shall be re-exported after such repair, further processing or manufacture, as the case may be, within a period of one year from the date on which the order for clearance of the imported goods is made;

(b) the imported goods are identifiable in the export goods; and

(c) such other conditions as may be specified in that notification.

Whether Section 25A is applicable to this case?

[YAGAY andSUN]

Also get GR Waiver from your Authorized Dealer and after repaired goods received back also get closure of this GR Waiver from your AD.

[DR.MARIAPPAN GOVINDARAJAN]

I think the query has not been correctly answered. I am also awaiting to know the complete procedure as required in this case.

[KASTURI SETHI]

Better option is to pay Customs duty and get credit /drawback or refund whatever is admissible. Earlier procedure has been dispensed with after 1.7.17. Virtually, Govt.has done so for proper accountal of inputs/capital goods. Ultimate aim is to avoid misuse.

[YAGAY andSUN]

You would have to follow appended procedure for the it:

1. Commercial Invoice, Packing List, Tax Invoice would be prepared.
2. Goods can be removed on payment of tax or LUT or Bond.
3. GR Waiver form would be applied by you through your A.D.
4. On repair charges customs duty would be paid.
5. After return of repaired goods you would have to close the GR Waiver from your A.D.

[AnilKumar Vyas]

Dear All Experts,

Thanks for your valuable suggestion.

Regards

Anil Vyas

[Guest]

Dear Sir,

We had imported capital equipment amounting to Euro 12000/- by Air on 25.03.2013 in India but because of calibration of that instruments is done at abroad we had re-exported the material on 07.07.2016.

Now the material is ready again for re-import . Whether after so many days/year can i reimport the said material ?

If yes,what custom procedure I will have to follow ? Our GR waiver of this instrument is pending with the bank for clousure.

We await your favorable reply soon.

regards,

sanjay acharekar

FDC LIMITED

MUMBAI

Tel : 022-26739361

Mob : 9167743575

[RAJESH AUDITHYAN]

Dear Mr.Sanjay

Wrt to your query on repair and return,reimport can be done. As you have mentioned there is abnormal delay in repair return hence suitable explanation letter has to be produced and needs to establish reimport cargo marks and numbers tallying with export. All the original return export docs has to be produced. Now Duty has to be paid on repair cost hence supplier has to give invoice for repair charges.

With rgds

Rajesh A

PT SHIPPING PVT LTD

CUSTOMS BROKERS

Mob :9380229514

Notification No. 46/2017 – Customs

2

Goods, other than those falling under Sl. No. 1 exported for repairs abroad

Duty of customs which would be leviable if the value of re-imported goods after repairs were made up of the fair cost of repairs carried out including cost of materials used in repairs (whether such costs are actually incurred for not), insurance and freight charges, both ways.

2. This Notification will apply to the exports for which order permitting clearance and loading under section 51 of the Customs Act, 1962 has been given on or before 30th June. 2017.

[Raghunandhaanan rvi]

You may please refer Customs Notification No. 46/2017 Sl. No. 2

Goods can be re-imported after repair within 3 years from the date of export which may be

extended by commisisoner for another 2 years.

If goods originnally imported under EPCG or any other Export Promotion scheme you should have re-imported the goods within one year or further extension given by commissioner not more than one more year.

AI Summary

Guidance on Re-Exporting Machines for Repair: Key Insights on Duty Exemptions and Documentation Under Section 25A. A discussion forum addressed the procedure for re-exporting and re-importing a machine for repair. Participants advised on maintaining documentation to prove the machine's repair status to avoid customs duty on re-import. Section 25A of the Customs Act and Notification No. 46/2017 were referenced, highlighting conditions for duty exemption and timelines for re-import. Suggestions included preparing commercial documents, obtaining a GR Waiver, and paying customs duty on repair costs. Queries about delays in re-import and procedural clarifications were also discussed, emphasizing the need for documentation and compliance with customs regulations.