Re importation of Goods

This query is : Resolved

Anil (Querist)
Follow

24 November 2010 hello, my query is that, when goods are exported from India, then no duty is leviable, but the same goods have been rejected and come to india. But the Indian manufacturer sells the same goods in India, by correcting the defective parts.

I am confused, because the law says at the time of reimportation custom duty will be levied and the same goods have been sold in India also.
Whether there would have to pay a normal duty as in case of goods sold in domestic market or not? And if not then how?

If yes, then there would levy custom duties at the time of importation as well as at the time of Domestic sales. So around 40% would be going as duties and taxes.

Prabhakar

Prabhakar (Expert)
Follow

24 November 2010 The rejected exported goods are received back by the manufacuter on payment of applicable IMPORT duty. The manufacturer can avail the credit on the import duty paid. when he clears the goods in the domestic market, the NORMAL APPLICABLE DUTY HAS TO BE PAID by way of utlising the credit so availed on the imported goods.

Anil

Anil (Querist)
Follow

24 November 2010 Sir thank u very much, and one more thing...the credit of only cvd 3(1) and cvd(3)(5) would be available, it means additional custom duty and cess on the respective one would still be payable extra.

Upgrade to CAclubindia Pro. Subscribe Now!

Prabhakar

Prabhakar (Expert)
Follow

24 November 2010 Dear Anil,
There is no other go.. have a look at the following link http://www.eximkey.com/contents/showpage1.asp?pageid=9229

under Section 12 of Customs Act, the re-imported goods are treated like other imported goods only. All the duties leviable on the other regular imports will be levied.. but the credit is allowed only as per Cenvat Credit Rules, i.e, on CVD, SAD and Cess on CVD..

And also read the para 3 of the above link which will provide you some relief for the goods which are re-imported for sale in the domestic market. You have to pay all the duties of Central Excise duties like BCD, Ed Cess and SHE which are otherwise leviable and which may not have been discharged at the time of exportation.

Anil

Anil (Querist)
Follow

25 November 2010 ok sir....now understood clearly.....thank u very much again