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

AI Summary

Import Duty on Coloring Dyes: Only IGST Payable, Input Tax Credit Available, Follow 2017 Rules, 10% Value Addition Needed A discussion on import duty related to job work involved a query about importing coloring dyes from China to India, which are then included in kits manufactured in India and exported to the USA. The response indicated that only IGST is payable, with input tax credit available. The dyes must be supplied free of cost by the buyer, and the procedure should follow the 'Customs (Import of Goods at Concessional Rate of Duty) Rules 2017.' Additionally, a 10% value addition is required on export, calculated as the FOB value of export being the CIF value of import plus 10%.