Import of final goods

[saket s]

Hello Experts,

Our raw material supplier is in country ‘A’, the raw material is required for manufacturing a final goods in country ‘B’ by another supplier. We wish to directly ship the raw material from ‘A’ to ‘B’ without bringing the raw material into India. Raw material is not traceable in the final product to be imported from country ‘B’. Payment to be made to supplier in country ‘A’ even before we get the part from country ‘B’. Can we pay without having bill of entry for goods importation from country ‘A’. What should be the valuation when part is imported from country ‘B’. Kindly help by clarifying the procedures to be followed and applicable FEMA/Customs conditions to be adhered.

Saket

[YAGAY andSUN]

You can pay in as advance to the supplier of Country A. Please write to Customs Department and to you banker about this transaction and get it done on Bill to you and Ship to B. The Customs duty will be paid on the total value of goods as manufactured by B. Submit the complete chain of documents to the Banker and Customs Department.

AI Summary

Import valuation: customs duty assessed on the total manufactured value when parts are shipped abroad for assembly before import. The purchaser may pay an advance to the original supplier and must notify the banker and customs; commercial papers should state Bill to purchaser and Ship to the contract manufacturer. Customs duty on the imported final goods is assessed on the total value as manufactured by the contract manufacturer, and the complete documentary chain of manufacture, movement and payment must be submitted to the banker and customs to support valuation and compliance.