Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 - Whether finished goods allowed?

[Nagarajan PV]

Dear Sir,

Good Morning.

With reference to above, I wish to know whether the importer who is having manufacturing set up for Manufacture of Electronic goods like Mobile phones & Telecom Products is eligible to import accessories as finished product under these rules vide notification no. 050/2017 sno. 508.

They also import components / parts for assembly / manufacture of these items. However they are importing Adapter (finished and packed) along with these components / parts. Whether this is allowed to be cleared under the Duty exemption under said RULES.

Please clarify.

Regards,

Nagarajan PV

[Nash Industries I Pvt Ltd]

Serial No 508 of Notfn 50/2017 is a conditional exemption i.e subject to fulfillment of condition No 9 which is Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017.

Please refer to rule 4 of the above rules. As per these rules, the goods to be imported are to be used either for manufacture or for providing output service.

The document is Annexure III that is required to avail the exemption.

Therefore, parts cannot be imported as FG.

Serial no 508 is wrt use in manufacture of STB and not for mobile phones. Therefore, you are not eligible for the exemption under sl no 508 of the said notification for manufacture of mobile phones.

So, adaptors for mobile phones is also not allowed under the said serial number of the notification 50/2017.

Regards

S.Ramaswamy

 

[DR.MARIAPPAN GOVINDARAJAN]

I endorse the views of Shri Ramasamy

[Nagarajan PV]

Dear Sir,

Thanks for your clarification.

I wish to submit that the goods imported are parts / components for STB only. As per Customer, Power Adaptor is one of the accessory to use in this STB for gaining access to Internet as a finished Product. Customer is using Annexure – III issued by jurisdictional Customs division to avail benefits for import of Goods at Concessional Rate of duty for Manufacturing vide Notification no. 050/2017 Sno.508.

As per Customs, any finished product imported under the Concessional Rate under said Rules not acceptable.

Customer says as long as the Jurisdictional Customs has issued certificate, the Customs at clearance port should not raise any objection / issues.

Please clarify...

Regards,

Nagarajan

[Nash Industries I Pvt Ltd]

The onus is on the importer and not on the Department.

The department issues Annexure III on the true and correct disclosures by the Importer.

The importer needs to file a return under the said rules.

Please note that the exemption is subject to actual user condition. If the goods imported under a conditional exemption, the condition is to be satisfied by the person claiming the benefit.

Regards

S.Ramaswamy

AI Summary

Conditional exemption requires Annexure III compliance and actual user use; finished accessories cannot be imported under that concession.
Serial number 508 of Notification No. 50/2017 is a conditional exemption subject to the Rules' conditions, including rule 4's requirement that imported goods be used for manufacture or to provide an output service. Annexure III is required to claim the concession and the exemption is subject to the actual user condition. Parts cannot be imported as finished goods where the serial entry is limited to specified uses. The onus to satisfy conditions and file returns rests with the importer; serial 508 applies to STB use and does not extend to mobile phone adaptors.