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 andSUN]

In such scenarios using of ATA CARNET is more beneficial.

AI Summary

Guidelines for Supplying Goods Free of Cost to Iraq: Shipping Bill, GR WAIVER, and ATA Carnet Options Discussed A participant in a discussion forum inquired about the process for supplying goods on a Free of Cost (FOC) basis to a foreign customer in Iraq for trial purposes. Responses advised filing a shipping bill as FOC, obtaining a GR WAIVER, and having the FOC invoice endorsed by a bank. It was noted that these goods are not considered exports under GST. Upon reimport, a zero import duty may apply under Notification No. 45/2017, serial no. 5. Another suggestion was to use an ATA Carnet for such transactions.