Goods sent for testing and re-imported after testing

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chamarthi venkatesh (Querist)
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15 February 2020 There is company which obtains raw materials from outside India (Country A) and exports the finished products to other countries (Country C).

In between, the company sends finished products to country B for testing purpose and gets them back to India after testing.

Now the doubt is, what is the treatment for this re-importation of tested finished products ?

What are the applicable Customs provisions ? Is the import duty required to pay ?

VIJAYALAKSHMI K

VIJAYALAKSHMI K (Expert)
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18 February 2020 Hi

While exporting the goods, clearly mention in all export documents that the goods are sent for testing and reimport.

At the time of reimport apply customs notification no.45 or 46 (based on the date of export) dt. 30.06.17 and avail customs duty exemption on the goods imported. However, duty need to be paid on testing charges and to & fro freight /insurance charges. Identity of the cargo needs to be proved at the time of export and reimport. Go through the notification for detailed instructions.