Import duty in job work

[Akshay Kapoor]

Hi,

We have a client in USA who is sending us colouring dyes in liquid form and tablet form packed in pouches in China and exported from China to india to us which we insert in a kit which is manufactured by our company here and then exported to USA.We are only putting these pouches in the kits( work) and shipping back to the client.

Will there be any import duty for this? If yes how much and what will be the procedure.

If Not, then what will be the procedure when imported and after exporterted.

Best Regards

Akshay

[Raghunandhaanan rvi]

Mr. Akshay

Please refer customs Notification No. 32/1997 relating to import of goods for execution of export order for jobbing

Only IGST is payable for which ITC is available

Dyes should be supplied by buyer on free of cost

Follow the procedure laid down in "Customs ( Import of Goods at Concessional Rate of Duty) Rules 2017

10% value addition required on export [FOB value of Export = CIF value of import +10%)

Thanks

AI Summary

Import duty for job work: IGST payable with ITC; use concessional import rules and meet required value addition before export. Imports of dyes for incorporation into export kits as job work qualify under concessional import provisions and Customs Notification No. 32/1997; only IGST is payable at import with availability of input tax credit, provided the dyes are supplied free of cost by the buyer and the importer follows the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017, including meeting the prescribed value addition requirement so that FOB export valuation equals CIF import value plus the required addition.