Re-import of Indian origin goods even for re-processing, re-conditioning, etc.
Circular No.127/1995 dated 14/12/95Subject:- Re-import of- goods of Indian origin which were earlier exported for the purpose of repairs, re-conditioning, re-processing, refining, remaking etc. and re-export thereafter - Regarding.
I am directed to refer to notification No. 158/95-Customs dated 14.11.1995 issued in supersession of notification No. 98/95-Customs dated 26.5.95 for exempting from the whole of duties goods manufactured in India, when re-imported into India for the purpose of repairs, reconditioning, reprocessing, refining, remaking or similar process. As may be seen the new notification considerably enlarges the scope of processes carried out for the purpose of re-export of re-imported goods of Indian origin. New notification provides for due accountal of the goods during such processes as well as it provides for exemption duty on loss of quantity of re-imported goods, if any, during such process.
2. The notification No. 158/95-Customs dated 14.11.95 basically contains lowing situations-
1) it exempts the goods manufactured in India and parts of such goods whether of Indian or foreign manufacture which were earlier exported from India and re-imported into India for the purpose of repair or for reconditioning, from the levy of duty of customs including additional 'duty of customs subject to the following conditions-
(i) there-importation takes place within three years from the date of exportation.
(ii) after the process of repairs or reconditioning the goods are re-exported within six months of the date of re-importation of such extended period not exceeding a further period of six months as Commissioner of Customs may allow.
(iii) the identity of goods is established subject to satisfaction of Assistant Commissioner of Customs.
(iv) the importers have to execute a bond undertaking at the time of importation to-
(a) export the goods after repairs or reconditioning within the ,o,. stipulated period.
(b) pay on demand in the event of his failure to comply with the conditionsof notification, the difference between the duty levied at the time of re-import and the duty leviable on such goods at the time of re-importation but for the exemption given above.
(v) the Board desires that the value of the bond should be approximately the amount of duty likely to be involved. The value of bank guarantee shall be 25% of this bond.
(2) The notification exempts goods manufactured in India and re-imported for the purpose of (a) reprocessing; or (b) refining; or (c) remaking, etc. subject to the following conditions-
(i) Such re-importation takes place within one year from the date of exportation.
(ii) Goods are re-exported within six months of the date of re-importation or such extended period not exceeding a further period of six months as the Commissioner of Customs may allow;
(iii) The Assistant Commissioner-of Customs is satisfied as regards identity of the goods.
(iv) The importer executes a bond to the effect that-
(a) such processes shall be carried out in a factory Central Excise control following the procedure laid i under rule 173 MM of Central Excise Rules, 1944 or in customs bond u/s 65 of the Customs Act, 1962.
(b) he shall maintain a due amount of the said re-imported goods and shall produce it duly certified by the officer Central Excise or Customs.
(c) in case any waste or scrap arises during such process either the same is to be destroyed before the officer, of Central Excise or Customs or to clear it on payment of appropriate amount of customs duty leviable on such waste or scrap.
(d) the importer in event of his failure has to pay an amount equal to the difference between the duty leviable on such goods at the time of re-importation but for the exempt) contained therein.
(v) the Board desires that the value of the Bond should be approximatelythe amount of duty likely to be involved. The value of bank guarantee shall be 25% of this Bond.
(vi) the loss in quantity during such process is exempted from customs duty and additional customs duty.
3. The main difference in the earlier notification 98/95-Customs dated 26.5.95 and the present notification 158/95-Customs is that the earlier notification provided for the cases in which the goods are re-imported for the purpose f repairs and re-export but the new notification has enlarged the scope of process to be carried out. It now covers not only repairs but the processes like reconditioning, reprocessing, dyeing, refining, remaking or similar process. It covers goods like dyes, chemicals, pharmaceuticals etc. which were earlier exports and required to be re-imported for carrying out any one of the above mention processes. Period of one year reduced to six months. This restriction would apply prospectively only & does not apply for imports already done.
4. The new notification even covers situation like the goods re-imported for thepurpose of changing the packing of goods earlier exported. It also covers the remaking of tablets of medicines which got damaged during transportation or otherwise. It also covers the cases of re-import of chemicals which a required to be reprocessed.
5. The provisions of this notification would also apply in case of re-import of goods which were earlier exported under any scheme like DEEC, 10% EOU etc., subject to fulfillment of-the conditions prescribed in the notification,
6. It is expected that with the new notification there should not be any difficulty in clearance of goods re-imported for the purpose of re-export after carrying out certain processes. The aforesaid notification and their implications may be immediately brought to the notice of departmental officers and also the trade by issue of suitable standing order/notices. In case of any difficulty in implementationof notification the Board may be suitably informed.
This Circular rescinds earlier Circular No. 61/95 dated 6.8.95 issued on the samesubject.
sd/-
(Vijay Kumar)
Under Secretary to the Govt. of India
F.No.435/3/95-CUS.IV
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