BAsic Customs duty

[Madhavan iyengar]

A is a DTA in Gujarat and wants to supply some parts to a EOU -B in Gujarat

A is importing the parts and pays basic Customs duty since this is a cost to A and then s these parts have to supplied to EOU-B

Query

Can A get benefit of nil basic customs duty by stating that it is importing it on behalf of the EOU

Or there is no other option but to ask EOU - B to import the parts directly without payment of Basic customs duty

Experts please suggest

[Alkesh Jani]

Sir,

As per the query raised, I am of the view that second option seems to be good. As first option is not legally viable.

Thanks

AI Summary

EOU Should Directly Import Parts to Avoid Basic Customs Duty; Importing Via DTA Not Legally Viable A user inquired about the possibility of avoiding basic customs duty on parts imported by a domestic tariff area (DTA) entity in Gujarat, which are then supplied to an export-oriented unit (EOU) in the same region. The user asked if the DTA could claim nil customs duty by importing on behalf of the EOU or if the EOU should directly import the parts to avoid the duty. An expert responded, suggesting that the EOU should import the parts directly, as the first option is not legally viable.