SALE FROM BONDED WAREHOUSE TO OUT OF INDIA

[NILESH PITALE]

DEAR EXPORTS

ONE OF THE MY CLIENT HAVE BEEN IMPORTED THE GOODS AND STORED THE GOODS AT BONDED WARE HOUSE AT NAVA SHIVA PORT AND THE SAME GOODS HAVE SOLD OUT AT TURKY ( OUT OF INDIA). NO DUTY PAID ON IMPORT.

QUAIRY : WHEATHER IT IS NON GST SALE OR CONSIDER AS EXPORT SALE LABILE TO IGST IF LUT HAS NOT TAKEN

PLEASE GUIDE

THANKING YOU

[Rajagopalan Ranganathan]

Sir,

Since the imported goods were diverted another foreign country before the goods crossed the customs barrier it is akin to high sea sales and no duty is payable. Import of goods will be completed only when it is cleared by Customs on payment of applicable duty from the bonded warehouse.

[Adarsh Sharma]

As per Section 69 (1) of Customs Act, 1962 (Clearance of warehoused goods for export) any warehoused goods may be exported to a place outside India without payment of import duty if -

a shipping bill or a bill of export or the form as prescribed under section 84 has been presented in respect of such goods;

Hence you can export the said warehoused goods under section 69 (1) by filling proper Shipping Bill.

[YAGAY and SUN]

Since goods were not crossed the customs frontier, therefore, Indian Tax Jurisdiction i.e. applicability of GST will not come in the purview. Section 69(1) of the Customs Act, 1962 as amended from time to time is an appropriate Section to deal with such matters.

AI Summary

Export of warehoused goods: sales before customs clearance treated as outside GST and exportable upon shipping bill.
Sale of imported goods from a bonded warehouse diverted abroad before customs clearance is treated as a high seas sale; import remains incomplete until customs clearance, so no import duty is payable at that stage. Such warehoused goods may be exported under the Customs Act provision by presentation of a shipping bill, and because the goods do not cross the customs frontier Indian GST jurisdiction does not apply.