Import Short Quantity-FOC

[Guest]

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?

[DR.MARIAPPAN GOVINDARAJAN]

Yes. you are correct.

[YAGAY andSUN]

Provided you had reported short receipt of material to the Customs Department and made full payment against the Commercial Invoice.

AI Summary

Import replacement free of cost still attracts customs duty when short receipt was reported and full payment made. Replacement consignments sent free of cost for a short quantity continue to attract customs duty; duty is payable where the importer had reported the short receipt to Customs and had made full payment against the Commercial Invoice, so the supplier's free-of-cost supply does not negate Customs liability.