REIMPORT-EOU-SERVICE CHARGE INVOICE

[Venkateswaran a]

Dear sir,

We have a 100% EOU Unit and had imported machinery by procurements certificate (nil rate of duty) and also send repairing purpose to exporting country via filled export shipping bill (NFIA) with machinery value.

Now we have reimport the machinery after repair the service charges made by the exporter. we take procurement certificate for the service charges or pay customs duty. ? kindly replay for the same.

[YAGAY andSUN]

In our view, you can take procurement certificate for the service charges also as charged by your foreign supplier/service provider as service charges will be includible in the Customs Valuation for calculation of customs duties. In this all gamut you export obligation will increase in proportion to duty foregone due to addition of service charges in customs valuation. In any case, you should have NFE.

AI Summary

Customs valuation: include supplier service charges on repaired imports, raising export obligation while supporting procurement certificate use. Service charges for repair of machinery reimported by a 100% EOU can be covered by a procurement certificate because such charges are includible in customs valuation for duty calculation; their inclusion increases the unit's export obligation proportionately, and the unit must maintain the required NFE documentation.