TaxTMI 
TaxTMI 
Re-import of goods for replacement
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....e-import of goods for replacement <br> Query (Issue) Started By: - Anurag Chopra Dated:- 2-5-2025 Customs - Exim - SEZ <br> Got 7 Replies <br> Customs<br> <br> Background: * XYZ Ltd. had exported certain goods say Quantity 1000, Price INR 1,00,00,000/- to one of its customers in August 2022. The customer has now informed XYZ Ltd they need a replacement of around Qty 3200 Price INR 32,00,000/- w.r....
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.....t to the goods exported in August 2022. * XYZ Ltd. would be replacing (not repair and re-export) the said goods to the customer and the goods re-imported would either be sold domestically post repairs or would sell as scrap. * Also, it is to be noted that at the time of exports its was made without payment of taxes under GST and any duty in customs. * Lastly, the replacement would now be done ....
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....on free of cost basis i.e., XYZ Ltd. will not charge any consideration from the customer as a onetime arrangement for the sake of commercial relationship with the customer. Query: Keeping the above background in mind request your view on following: * Can import of defective material and replacement of the same be done on FOC basis (keeping in mind regulations of customs/ GST etc.) * What the sta....
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....tutory requirements XYZ Ltd. needs to fulfil under customs and/ or any other indirect tax statute for the above transactions. * What are the regulations under customs/ FEMA etc. to be fulfilled by OEL for said FOC transaction. * What implications (if any) XYZ Ltd. needs to keep in mind and safeguards XYZ Ltd. need to adhere to in relation to the said transaction. * Any other suggestion/ documen....
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....tation. Thanks in advance for your views. --Reply By: Nlesh Parmar The Reply: Hi Everyone, Need expert advise here in the case of Import. A company ABC has imported goods through Air mode eg. 1000 pcs in May 2025. Upon receiving it found that 900 pcs are not matching specification as intended. Same is communicated to Exported and exporter agrees to give replacement on Free of cost (FOC) basis N....
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....ow the scenario is re export of rejected goods does not take place and exporter has send the replacement June 2025. So what should be best possible way to complete the transaction and to avoid any further duty payment Expert opinion is awaited Thanks !! <br>***<br> Discussion Forum - Knowledge Sharing....