Import & export of capital goods

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2015 Dear All

We are manufacturer & Exporter of E.H.G CAPSULES and registered with Central Excise, now We want to Import Three Capital Goods of Capsules making or inspection from China, and want to export it other country what is the procedure. can we export the capital goods.

Regards

Vishal

Arun Kumar Singh

Arun Kumar Singh (Expert)
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10 June 2015 Both option is available for import of capital goods with payment of duty and take credit, another option is you can import the capital goods without payment of import duty.

Querist : Anonymous

Querist : Anonymous (Querist)

10 June 2015 Sir,

we are manufacturer of Capsules , how we can export the Imported Capital goods, excise department have no objection how we can trading of capital goods

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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28 July 2024 Exporting imported capital goods, particularly when you are a manufacturer, involves several steps and compliance with specific regulations. Here’s a step-by-step guide on how to handle the export of capital goods that you have imported:

### **1. Understand Capital Goods Regulations**

**A. Definition and Classification**
- **Capital Goods:** These are assets used in the production of goods or services, which include machinery, equipment, etc.
- **Customs Classification:** Ensure that the capital goods are correctly classified according to the Customs Tariff.

**B. Excise and GST Compliance**
- **Excise Duty:** Ensure that you have followed all the procedures for excise duty if applicable, though excise duty on capital goods has largely been subsumed under GST.
- **GST:** Verify the GST implications, as exports are generally zero-rated under GST.

### **2. Ensure Compliance with Import Regulations**

**A. Import Documentation**
- **Bill of Entry:** Ensure that the Bill of Entry for the imported capital goods is properly filed.
- **Import License:** Ensure you have the required import licenses if applicable.

**B. Conditions for Export**
- **Export Under Bond/ LUT:** If the capital goods were imported under an export bond or Letter of Undertaking (LUT), comply with the terms.
- **No Objection from Excise Department:** Obtain a no-objection certificate from the excise department if needed.

### **3. Procedures for Exporting Capital Goods**

**A. Apply for Export Authorization**
- **Application to DGFT:** If necessary, apply for export authorization or permissions from the Directorate General of Foreign Trade (DGFT).

**B. Prepare Documentation**
- **Shipping Bill:** Prepare a Shipping Bill for the export of capital goods.
- **Invoice:** Prepare an invoice detailing the capital goods to be exported.
- **Packing List:** Include a packing list with details of the goods.

**C. Customs Compliance**
- **Customs Declaration:** File the customs declaration for the export of the capital goods.
- **Inspection:** Ensure that the capital goods are inspected if required by customs authorities.

**D. Export Logistics**
- **Logistics Arrangements:** Arrange for the transportation of capital goods from your location to the port or export facility.
- **Insurance:** Consider insuring the goods during transit to cover any potential loss or damage.

### **4. Post-Export Compliance**

**A. Maintain Records**
- **Export Documentation:** Keep records of all export documentation, including the shipping bill, invoice, and any certificates obtained.
- **Tax Records:** Maintain records of any tax-related documentation for future reference and audits.

**B. Follow-up**
- **Customs Follow-up:** Follow up with customs to ensure that all export formalities are completed and that there are no pending issues.
- **Receive Payment:** Ensure that payment for the export is received as per the agreed terms.

### **5. Special Considerations**

**A. Export Processing Zones (EPZ)**
- **EPZ Benefits:** If you are operating in an Export Processing Zone, there might be additional benefits and compliance requirements. Check the specific guidelines applicable to EPZs.

**B. Duty Drawback Schemes**
- **Claim Duty Drawback:** If applicable, claim duty drawback for any customs duties paid on imported capital goods used in manufacturing exported goods.

**C. Consult Professionals**
- **Customs Consultant:** Consult with a customs consultant or export advisor to ensure that all regulations are met and to assist with any complex issues.

### **Summary**

To export imported capital goods, you need to ensure compliance with customs regulations, GST and excise requirements, and obtain necessary export permissions. Prepare and file the required documentation, handle logistics and insurance, and maintain accurate records. Consulting with professionals and adhering to specific guidelines can facilitate smooth processing and compliance.