Procedure for re-export of equipment under warranty

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 May 2015 i have imported an equipment last year from US but due to some technical issues the equipment is not working properly. the supplier is ready to resolve the issue. but he is asking us to send the equipment to US. Kindly let me know the procedures to be followed in repair and return basis.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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26 May 2015 In simple terms, let me describe about re exports. If you categories exports as foreign goods and domestic goods, the export of foreign goods is called re-exports. This is the simplest method of understanding about re-exports. If any goods imported from another country (it becomes foreign goods) and thereafter exporting back, such goods are fallen under re exports. For example, a machinery has been imported in to a country for testing purpose and after necessary testing, the said machinery is sent back. Here, the process of sending back such machinery is called re-exports.

In many cases re-exports happen as the exported goods are not satisfied with quality measures, goods exported not matching with the buyer’s requirements, goods exported for specific purpose like project, exhibition etc..

Such re export procedures can be effected by filing necessary documents along with supporting documents with customs department of respective country.

I AM POSTING PROCEDURES
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OFFICE OF THE COMMISSIONER OF CUSTOMS NS-I, III & V
JAWAHARLAL NEHRU CUSTOM HOUSE, NHAVA-SHEVA.
TAL: URAN, DIST: RAIGAD, MAHARASHTRA-400 707.

F.No. S/22-Gen-51/2014-15 AM(I)NS-I, Date: 29 .01.2015

PUBLIC NOTICE NO.09/2015

SUBJECT: PROCEDURE TO BE FOLLOWED IN RE-EXPORT OF IMPORTED GOODS UNDER SECTION 69 OF THE CUSTOMS ACT, 1962-REG.

The trade has represented that in the case of export of warehoused goods under Section 69 of the Customs Act, 1962, whenever there is involvement of two Custom Houses, lengthy procedures are being followed and it entails lengthy procedures of documentation and they are required to obtain numerous signatures of the concerned Customs officers of Import Bond Section, concerned Groups where such commodity is handled and officers of Export Department of the Customs House. This is resulting in delay in clearance of the goods and therefore request was made for change of procedure presently being followed in such cases. The Chief Commissioner of the zone had agreed to the same.

2. The matter has been examined and the following new procedure is prescribed for export of warehoused goods as envisaged under Section 69 of the Customs Act, 1962:-

A. The bonder-exporter shall submit an application in prescribed format for export under Section 69 of the Customs Act, 1962, to the AC/DC Bond Section under whose jurisdiction the warehoused goods are lying. The format in which such application shall be given is mentioned at Annexure A, wherein all required information like bond number, description of goods etc are to be mentioned.

The AC/DC (Bond) may, after causing verification of physical availability of the said goods in the bonded warehouse, allow export of the said goods subject to the following conditions:-

(i) On re-export, the exporter realizes full foreign exchange spent on import in freely convertible foreign currency, if the goods were imported on payment in freely convertible foreign currency; and

(ii) The import in the first instance was not-unauthorized or in contravention of the Foreign Trade Policy (FTP).

After, the grant of permission for re-export, the Tax Assistant (TA) of the Bond Section will make a provisional entry in the Bond Register regarding intended export u/s 69 by the party.

The permission so obtained by the party for export under Section 69 of the Customs Act, 1962, will be sent to the concerned AC/DC Export (Loading Port) and a copy of the permission will be endorsed to the Bond Officer posted at the warehouse wherein goods are deposited. Format of the letter in which such permission is granted is mentioned at Annexure B, which will be handed over to the representative of the Bonder-Exporter in sealed cover.

B. After obtaining the permission for export the party shall submit the permission letter to the AC/DC (Export) where from export will be affected, in prescribed format (Annexure C) along with required documents and simultaneously the party will file the Shipping Bill.

C. The Shipping Bill (Manual/EDI as per the practice followed) will be generated in the concerned Commissionerate i.e. (Port of Loading). Now the party shall submit the file including the Shipping Bill and other relevant documents to the Assessing Officer of the concerned Commissionerate for the assessment of the goods, which are to be exported.

D. After assessment of the Shipping Bill, the AC/DC Export shall inform the concerned Bond Superintendent for removal of the goods. Thereafter, the party shall approach the concerned warehouse/bond customs officer along with shipping bill and other relevant documents. The bond officer will verify the documents i.e. permission to re-export and S/Bill No., forwarded by the Import Bond Section and the Export Section wherefrom bonded goods are to be exported and make the entries in the Bond Register maintained at the Bonded Warehouse. He / She will enter the Shipping Bill No. and quantity of the warehoused goods to be exported in the prescribed column. Then the Bond Officer will allow the movement of goods either under preventive supervision or under punch seal to concerned Customs House, as per the requirement of the party.

E. After receiving of the goods at export port, the Examining Officer (E.O.) will examine the goods as per the norms and accordingly Let Export Order (LEO) will be given.

F. After order of the clearance of the goods, final Shipping Bill along with the relevant documents generated shall be submitted to Bond Section for cancellation of Bond as discharged in full or debit of part exported quantity in the Bond Register.

3. The same procedure will be adopted immaterial of the fact whether the said export is effected from the same Custom House or from some other Custom House.

4. The aforesaid procedure shall come into force with immediate effect and shall be followed by members of trade.

5. Any difficulty noticed in the implementation of this order may be brought to the notice of the undersigned.

SD/-
(SEEMA JERE BISHT)
COMMISSIONER OF CUSTOMS,
NS-I, III & V, JNCH
Encl: Annexure A, B & C