Export of free issue and then import it back with assembly

[Nandita Gupta]

We want to export some item (gears) to our manufacturer in China for assembly in some item (wheelsets) and then import the complete assembly (gears mounted wheelsets). Can we export/supply the item to China as free issue and then import it after assembly and pay the import custom duly only on the assembly (geared wheelsets) minus free supply (gears) ?

regards,

AI Summary

Customs valuation: whether import duty applies only to assembled goods' added value when components were exported as free issue. Whether components exported as free issue for third party assembly and re imported as completed goods may be assessed for customs duty only on the value added by assembly, net of the free supplied components.