Dear Sir,
We have imported some material.
There were short quantitiy of it.
Now supplier is sending short quantity free of cost.
As per my understanding, material is not free in eyes of law. So duty needs to be paid again on import.
Is my understanding correct?
Duty Required on Shortfall Imports Even if Supplied Free; Applies if Reported and Paid Initially. An individual inquired about the import of materials with a shortfall, which the supplier is now sending free of charge. The individual questioned whether duties must be paid again on the short quantity. A respondent confirmed that duty must indeed be paid, as the material is not considered free by law. Another respondent added that this applies if the short receipt was reported to Customs and full payment was made against the original commercial invoice. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
