We received RM free of cost from supplier for job work. Please clarify which notification i have to refer to save custom duty. Do need to submit any BG or undertaking to custom authority. Also answar following queries.
1. We are raising job work invoice on supplier of goods and does not include material cost.
2. what documents we have to maintain to support the job work.
No Customs Duty on Free Raw Materials for Job Work; Refer to Notification No. 32/97 Customs for Details. A user inquired about customs duty exemptions for receiving raw materials (RM) free of cost for job work, seeking guidance on applicable notifications, and documentation requirements. The response clarified that no customs duty is required if materials are supplied free of cost for job work related to export orders. Notification No. 32/97 Customs should be referred to for details. The conditions include re-exporting the resultant product within six months and ensuring the FOB value of exports exceeds 10% of the CIF value of imported goods. Compliance with the Customs (Import of Goods at Concessional rate of duty for Manufacture of excisable goods) Rules 2016 is necessary. (AI Summary)
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