Dear
We want to Import the machinery from Vietnam under a lease agreement of 5 years. After 5 years Machinery will send back to Origin. And there is no commercial value involved, only we will pay Lease amount yearly.
In this case, what is procedure and documents are required for Customs clearance ???
Do we need to pay Customs Duties??
Any duty exemption schemes are available ???
Please share your valuable suggestions.
Company to Import Machinery from Vietnam Under Lease: Customs, IGST, and FEMA Compliance Required for Seamless Process. A company plans to import machinery from Vietnam under a five-year lease agreement, with no commercial value involved aside from annual lease payments. The process requires compliance with Customs, IGST, and FEMA regulations. Importers must file a Bill of Entry, pay applicable customs duties, and possibly provide a customs bond. IGST is levied on the lease, but input tax credit may be available. The lease agreement must comply with FEMA and RBI guidelines, with payments made through authorized channels. An exemption for IGST on lease payments may be available. Proper documentation and regulatory compliance are essential for seamless importation. (AI Summary)
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