Import duty on Rejected Belting Fabric

[ABF GROUP OF COMPANIES INDIA]

Hi. Can anyone explain in detail the following.

Rejected/ substandard Nylon/Polyester belting Fabric is being imported into india from USA.

Question:

1. what is the rate of duty on above product.

2. is there anti dumping for import of this product ( substandard) from USA.

3. What is the EDI price for calculation of Customs duty usually adopted for this product?

Expecting advice at the earliest. thanks in advance.

ABF.

[Ramaiah Swamy]

good evening queriest,

 

1.Generally,  second hand / used goods  are restricted for import.

2.  However capital goods  of second hand nature can be imported under EPCG scheme

3.  You may look at para 2.17 of Foreign Tradde Policy

4.  You may also look at General note on import / export contained in beginning part of ITC HSN

5.  Then take a decision to import against partiular licence

6.  Any import of restricted goods without proper licence will lead to action by customs

   authorities

7.  Antidumping duty depends on country of original.  Generally USA is not covered for the purpose.  However study or corresponding notification is called for

 

Rangaswamy

 

 

[Radha Arun]

Second hand goods are restricted for imports under paragraph 2.17 of the Foreign Trade Policy, and may be imported only under licence. Application for licence is to be made to the Regional Authority of the DGFT in Form ANF 2B appended to the Handbook of Procedures (Foreign Trade Policy).

It is not clear whether this is re-import of exported material. If so, the provisions regarding duty and procedures wil be different. Also the intended use of the goods is not clear. Different provisions, applicable to import of second hand capital goods, could apply if the item fits the definition of 'capital goods' in the Foreign Trade Policy, extracted below:

 "Capital Goods" means any plant, machinery, equipment or accessories required for manufacture or production, either directly or indirectly, of goods or for rendering services, including those required for replacement, modernisation, technological upgradation or expansion. It also includes packaging machinery and equipment, refractories for initial lining, refrigeration equipment, power generating sets, machine tools, catalysts for initial charge, equipment and instruments for testing, research and development, quality and pollution control. Capital goods may be for use in manufacturing, mining, agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture and viticulture as well as for use in services sector."

Value for customs will normally be transaction value. This should be supported by a Chartered Engineer's certificate (given in the country of supply) as to the age, condition, and past and present value of the goods. If the customs reject the declared value for some reason, they would go by the manufacturer's list price after allowing depreciation. They may ask for the original invoice for this purpose.

 

AI Summary

Restriction on second hand imports may require a licence and affect customs valuation and anti dumping applicability. Second hand goods are restricted under the Foreign Trade Policy and require a DGFT licence (Form ANF 2B); certain second hand capital goods may be imported under the EPCG scheme if they meet the Policy definition of capital goods. Customs valuation is normally transaction value supported by a Chartered Engineer's certificate; if rejected, customs may use the manufacturer's list price after allowing depreciation. Antidumping applicability depends on country of origin and relevant notifications.