FEMA-GR waiver

[Dhirendra Srivastava]

1 we sent the 5000 Pcs to China for Job work against GR waiver. Out of 5000 pcs, we get back 2036 pcs after job work from China & 2964 pcs has been rejected during process. We get the Rejection Certificate from China regarding rejected material . 2. China company demanding the Job work Charges. QUERY : 1. How can we make the payment regarding Job work charges amounting Rs. 49478 USD ? 2. How can we close the GR waiver ?

[dinesh agrawal]

The first query is whether GR waiver was conditional that what is exported should be re-imported?

Rejection/loss of material is normal in any manufacturing process and therefore, there will not be any problem with bankers/RBI if you can provide supporting documents.

On import of goods after job work, you have to file a bill of entry wherein job work charge and to and fro freight and insurance charge will be subject to customs duty. Job charge will be based on invoice. You will be permitted to remit FOREX against jobwork invoice and B/E.

 

[RAGHU PATHI]

Hi,

Sub: GR waiver

I need help from you on the below case

We have exported some goods for an exhibition purpose with 2 split invoices. 1 Invoice with GR waiver (with a condition to re-import after exhibition) for getting the material back as these were display samples and another invoice without GR waiver as those are only business promotion items. while exporting the freight forwarder used only one invoice (invoice without GR waiver) and filed the export documents including export shipping bill and mentioned the GR waiver in the shipping bill and the invoice with actual GR waiver was omitted and not recorded anywhere.

Now the same freight forwarder had bought back the shipment (shipment with actual GR waiver) but was unable to clear it under GR waiver as the export documents were wrong as explained above.

Let me know what is the way out to close the GR waiver?

I would expect a quick reply from an expert

Thank you

AI Summary

GR waiver conditions affect re import and job work payments; job charges and freight face customs duty and require documentation. On re import after job work under a GR waiver, the importer must file a bill of entry declaring job work charges and to and fro freight and insurance, which attract customs duty; job work charges must be invoiced and may be paid in foreign exchange against the job work invoice and bill of entry. Rejections during processing require foreign rejection certificates and supporting documents to satisfy bankers/RBI and customs when closing the GR waiver. Incorrect or omitted export invoices that fail to record the GR waiver must be regularised with correct invoices and shipping documents to enable closure of the waiver.