FOC Export

[mk Jain]

Dear Team

We need to supply the goods on FOC basis to Foreign Customer at Iraq Sites on trial basis for a period of 3-4 months for geeting the order in future from their site. What is the modelity/process we need to do.

MK

[Shilpi Jain]

File a shipping bill during export of goods as FOC. 

This will not be treated as exports under GST as it is not a supply.

[Raghunandhaanan rvi]

Also obtain GR WAIVER  from your authorized dealer and get the foc invoice endorsed by the bank.

[mk Jain]

Yes, I agree. After the testing is completed we will bring back the goods. At that time the import duty should be zero as per general exemption 147 condition no. 5?

Thanks to all for valuable reply.

MK

[Raghunandhaanan rvi]

You may claim zero duty benefit on the reimport of goods under Notification No. 45/2017 - Customs under serial no. 5.

[YAGAY and SUN]

In such scenarios using of ATA CARNET is more beneficial.

AI Summary

FOC export protocols: file a shipping bill, secure GR waiver and bank endorsement, and seek zero duty re import relief.
File a shipping bill marked FOC when sending goods abroad for trials; such movements are not treated as exports under GST since they are not supplies. Secure a GR waiver from the authorised dealer and obtain bank endorsement of the FOC invoice. On return after testing, claim zero duty on re import under the applicable customs re import exemption. Consider using an ATA Carnet for temporary admission to streamline re import formalities.