IMPORT RAW MATERIAL FOR PRODUCTION OF EXPORT ORDER

[SNEHAL SHAH]

Sir,

We have received one order from foreign client . Foreign client write one condiion in this order that one parts of this mateiral will be supply by him & other will be produciton from india .

Now question is that how we will import this parts ? Pl. Suggest all this  procedure .

Thanks,

SNE

 

[YAGAY and SUN]

You may import this part on payment of duty and while exporting the finished goods, you may avail the duty drawback ( i.e. customs duty paid on the imported part used in manufacturing of finished goods) under Section 75 of the Customs Act, 1962.

You may opt for either All industry rate or go for Brand Rate fixation in this regard.

[YAGAY and SUN]

In continution to my reply, you may also opt for DFIA or Advance Authorisation in this regard depending on your need.

[Radha Arun]

notification 32/97-Cus provides for duty-free import of material for job work. The product must be exported within 6 months. Certain procedures have to be followed. You can see the notification under the 'Customs' tab in this site. ("Notifications & Circulars" -> "Exemption / Tariff Notifications")

AI Summary

Duty relief options for imported inputs: drawback, DFIA/Advance Authorisation, or duty-free job work route available to exporters.
Importers may either pay customs duty on parts and claim duty drawback using All Industry Rate or Brand Rate Fixation, or use DFIA or Advance Authorisation for duty relief; alternatively, duty-free import for job work is available under the relevant notification subject to an export obligation within a prescribed period and specified customs procedures.