Reexport under sec 74

[SWAMI NATHAN]

Sir

We have imported goods from Sri Lanka and kept in bonded warehouse without payment of duty. Now we would like to reexport to other countries by doing some relabeling. The nature of the Product does not change, but the identity of the product (i.e the label on the product imported will be changed to some other name). Whether we are eligible for the 98% Drawback.

 

[YAGAY andSUN]

No, you can't.  Goods intended for re-export under Section 74 of the Customs Act, 1961, must be in their original packing and must be identified by the Customs Authorities in this respect.

AI Summary

Goods Relabeled for Re-export Ineligible for 98% Drawback Under Section 74 of Customs Act, 1961. A query was raised regarding the eligibility for a 98% drawback on goods imported from Sri Lanka, stored in a bonded warehouse without duty payment, and intended for re-export after relabeling. The relabeling changes the product's identity but not its nature. The response clarified that under Section 74 of the Customs Act, 1961, goods must remain in their original packaging and be identifiable by Customs Authorities to qualify for the drawback, thus making the relabeled goods ineligible.