Re repair & return goods duty

This query is : Resolved

Er. jayendra Mokana (Querist)
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11 September 2013 Dear Sir,

I have imported device which comes under one year warranty from manufacturer. at the time of import i paid 100% custom duty. After receiving goods within few days it does not work properly, so i export the same on repair & return basis with all necessary documents.

Now at the time of arriving repaired goods in india, custom department reject our documents and forced us to pay 100% custom duty again. at that time we paid the 100%duty second time for the same goods due to urgent requirement of goods.

According to my knowledge there is no custom duty on repair & return goods, so how can i get back the custom duty from custom department & what is the procedure for that.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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09 October 2013 Normal customs duty will be payable on re-imports, restrictions and conditions as applicable to other imported goods are applicable to re-imported goods also. The re-imports are entitled for certain concessions/ exemptions ; If the same goods which were exported are re-imported within three years by same person, customs duty is payable which is equal to duty drawback claimed plus central excise duty (which was exempted when the goods were initially exported). However, this concession is not applicable to goods which were exported by EOU or FTZ units. Goods should be re-imported within specified time limit – Notification No. 94/96-Cus dated 16.12.1996. Basic principle is that export incentives obtained at the time of export will be recovered. If excise duty was paid when goods were exported, no customs duty is payable when goods are re-imported . If goods were exported under bond without payment of duty for participation in international exhibition, only duty equal to excise duty is payable. There is no requirement to pay SAD in respect of such goods, as all customs duties stand exempted under Notification No. 94 /1996-Cus – No customs duty is payable if goods are re-imported for repairs, reconditioning, reprocessing, dyeing, refining or similar process. Such re-import should be within three years from export. Whole goods or only some of its parts (i.e. only defective parts) can be re-imported. The goods must be re-exported within 6 months after carrying out the repairs. Same goods which are imported must be re-exported. Necessary bond has to be executed – Notification No. 158/ 95-Cus dated 14.11. 95 and CBE&C circular No. 127/95-Cus dated 14-12-1995. It has been clarified that the period of 6 months should be calculated from date of actual clearance of goods from the port – CBE&C circular No 14 /97-Cus dated 3.6.1997. If private/personal property which was imported earlier was re-exported for alteration, renovation, repair free of charge etc. can be re-imported without , payment of customs duty. – Notification No 174 /96-Cus.As per customs notification No. 94 /96-Cus dated 16-12-1996, if goods are sent abroad for repairs, duty will be payable; on re-imports on value of re-imported goods after repairs were made up of (a) fair cost of repairs including cost of materials used in repairs (whether such costs are actually incurred or not) and insurance and freight charges,

pls follow the following links:

http://www.excisekanpur.nic.in/cusman/cuschap20.html

http://www.jawaharcustoms.gov.in/newsite/StandingOrders/SO2004/SO-37-04.htm

http://www.cbec.gov.in/customs/cs-act/notifications/notfns-before2k/cs94-96.htm

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Rama Krishnan

Rama Krishnan (Expert)
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12 October 2013
RIGHT PROCESS- AT THE TIME OF FIRST IMPORTS, YOU SHOULD HAVE ENDORSED MODEL NO AND SERIAL NUMBER OF THE MACHINE IN INVOICE AND BILL OF ENTRY, THEN ON EXPORT YOU SHOULD HAVE DECLARED THE GOODS ARE BEING EXPORTED FOR REPAIRS AND CONFIRMATION TO THIS EFFECT SHOULD HAVE BEEN RECORDED IN THE SHIPPING BILL, WITH THIS, ONCE GOODS ARE IMPORTED BACK AFTER REPAIRS, IDENTIY OF THE GOODS COULD HAVE BEEN EASILY ESTABILISHED WITH MODEL NO/ SERIAL NUMBER AND CUSTOMS ENDORSEMENT.

IN SUCH CASE, CUSTOMS DUTY WILL BE CHARGED ONLY ON REPAIR CHARGES( IF ANY) AND TO AND FRO FREIGHT CHARGES ONLY.

NOW IF YOU HAVE ABOVE DOCUMENTS TO PROVE, THEN YOU CAN APPLY FOR REFUND, IF YOU DO NOT HAVE , THEN REFUND EVEN IF FILED WILL BE REJECTED.

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Er. jayendra Mokana

Er. jayendra Mokana (Querist)
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12 October 2013 Dear shree rama krishnan,

First of all thank you very much for your valuable information. Further model no. Of device was mentioned in invoice by supplier at the time of first import & same by us at the time of export on repair and return basis.

As device was under one year warranty given by manufacturer, repair charges are zero, so manufacturer send a zero repair changes invoice.

From above points can we eligible to get refund of custom duty paid ?

If yes than what is the procedure for the same.

Eagerly awaiting for your response.

Thanks again

Er. Mokana jayendra s.

Rama Krishnan

Rama Krishnan (Expert)
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14 October 2013
YOU CAN ASK YOUR CHA TO FILE A REFUND CLAIM WITH CUSTOMS WITH REQUIRED FORMS AND ALL SUPPORTING DOCUMENTS & DETAILS. YOU SHOULD ALSO GIVE A DETAILED GROUNDS OF APPEAL WITH ALL SEQUENCES OF EVENTS WITH SUPPORTING DOCUMENTS.

THEREAFTER SEEK A PERSONAL HEARING WITH D.C REFUND & PERSUE THE CASE.

YOU SHOULD ALSO SHOW THIS AMOUNT IN YOUR BOOKS OF ACCOUNTS ARE RECOVERABLE FROM CUSTOMS TO MEET UNJUST ENRICHMENT CLAUSE.

THE BEST WAY COULD HAVE BEEN THAT YOU SHOULD NOT HAVE PAID THE DUTY AS UR CASE IS LEGITIMATE.