Re-import of exported equipment

[MANOHARAN ARUMUGAM]

Dear Experts,

I am planning to import a capital equipment under EPCG scheme. One of the critical part of the equipment (eg.Motor) is not readily available with the manufacturer. The equipment manufacturer asks us to procure the critical part (Motor) locally and send it to him for fixing in the capital equipment. I am planning to export the part under Sl.No.5 of Customs Notification No.45/2017-Customs dt.30.06.2017. My question is;

1. Am I correct to export under above Notification?

2. If so, at the time of importing the capital equipment (will be fitted with the Motor which I am planning to send to the equipment manufacturer), can I assess the duty for the value of the equipment excluding the value of the Motor?

3. What is any other procedure for seamless clearance at the time of import?

Please guide.

A.Manoharan

AI Summary

EPCG Scheme: Experts Discuss Duty Assessment for Re-import of Parts under Customs Notification No. 45/2017 and Valuation Rules. An individual inquired about the re-import of a critical part for capital equipment under the EPCG scheme, specifically asking about exporting under Customs Notification No. 45/2017 and assessing duty excluding the part's value. Three experts responded. One suggested that exporting under the notification seems permissible, and challenges to import assessments can be made. Another emphasized that the motor's value must be included in the capital goods' cost, with duties payable on the total invoice value as per Customs Valuation Rules. The third advised considering provisions related to GR Waiver for closing IDMPS.