Refund of import duty for export of imported goods
This query is : Resolved
28 September 2013
We are dealing in importing of a camera chip for machine. We just make the outer body of the chip and sell it for machine systems. Now even after processing(as in mounting the metal body on camera chip) item HSN/Excise code remains the same and also we sell by the same serial no with which it comes from our principals outside India.
We want to sell this product outside India but after paying import duties in india it becomes very expensive. Is there anyway to claim the import duty drawback for the products we export, because we are not doing any major processing on the imported good.
Thanks
Akhil
We want to sell this product outside India but after paying import duties in india it becomes very expensive. Is there anyway to claim the import duty drawback for the products we export, because we are not doing any major processing on the imported good.
Thanks
Akhil
30 September 2013
बेहतर होगा यदि आप अपनी यूनिट स्पेशल इकोनोमिक जोन में ले जाये.
A SEZ unit which has been set up for carrying on manufacturing, trading or service activity has both advantages as well as disadvantages. SEZ advantages are quite far more as compared to its disadvantages which are almost negligible.
Advantages
15 year corporate tax holiday on export profit – 100% for initial 5 years, 50% for the next 5 years and up to 50% for the balance 5 years equivalent to profits ploughed back for investment.
Allowed to carry forward losses.
No licence required for import made under SEZ units.
Duty free import or domestic procurement of goods for setting up of the SEZ units.
Goods imported/procured locally are duty free and could be utilized over the approval period of 5 years.
Exemption from customs duty on import of capital goods, raw materials, consumables, spares, etc.
Exemption from Central Excise duty on the procurement of capital goods, raw materials, and consumable spares, etc. from the domestic market.
Exemption from payment of Central Sales Tax on the sale or purchase of goods, provided that, the goods are meant for undertaking authorized operations.
Exemption from payment of Service Tax.
The sale of goods or merchandise that is manufactured outside the SEZ (i.e, in DTA) and which is purchased by the Unit (situated in the SEZ) is eligible for deduction and such sale would be deemed to be exports.
The SEZ unit is permitted to realize and repatriate to India the full export value of goods or software within a period of twelve months from the date of export.
“Write-off” of unrealized export bills is permitted up to an annual limit of 5% of their average annual realization.
No routine examination by Customs officials of export and import cargo.
Setting up Off-shore Banking Units (OBU) allowed in SEZs.
OBU's allowed 100% income tax exemption on profit earned for three years and 50 % for next two years.
Exemption from requirement of domicile in India for 12 months prior to appointment as Director.
Since SEZ units are considered as ‘public utility services’, no strikes would be allowed in such companies without giving the employer 6 weeks prior notice in addition to the other conditions mentioned in the Industrial Disputes Act, 1947.
The Government has exempted SEZ Units from the payment of stamp duty and registration fees on the lease/license of plots.
External Commercial Borrowings up to $ 500 million a year allowed without any maturity restrictions.
Enhanced limit of Rs. 2.40 crores per annum allowed for managerial remuneration.
more info:
http://sezindia.nic.in/about-fi.asp
A SEZ unit which has been set up for carrying on manufacturing, trading or service activity has both advantages as well as disadvantages. SEZ advantages are quite far more as compared to its disadvantages which are almost negligible.
Advantages
15 year corporate tax holiday on export profit – 100% for initial 5 years, 50% for the next 5 years and up to 50% for the balance 5 years equivalent to profits ploughed back for investment.
Allowed to carry forward losses.
No licence required for import made under SEZ units.
Duty free import or domestic procurement of goods for setting up of the SEZ units.
Goods imported/procured locally are duty free and could be utilized over the approval period of 5 years.
Exemption from customs duty on import of capital goods, raw materials, consumables, spares, etc.
Exemption from Central Excise duty on the procurement of capital goods, raw materials, and consumable spares, etc. from the domestic market.
Exemption from payment of Central Sales Tax on the sale or purchase of goods, provided that, the goods are meant for undertaking authorized operations.
Exemption from payment of Service Tax.
The sale of goods or merchandise that is manufactured outside the SEZ (i.e, in DTA) and which is purchased by the Unit (situated in the SEZ) is eligible for deduction and such sale would be deemed to be exports.
The SEZ unit is permitted to realize and repatriate to India the full export value of goods or software within a period of twelve months from the date of export.
“Write-off” of unrealized export bills is permitted up to an annual limit of 5% of their average annual realization.
No routine examination by Customs officials of export and import cargo.
Setting up Off-shore Banking Units (OBU) allowed in SEZs.
OBU's allowed 100% income tax exemption on profit earned for three years and 50 % for next two years.
Exemption from requirement of domicile in India for 12 months prior to appointment as Director.
Since SEZ units are considered as ‘public utility services’, no strikes would be allowed in such companies without giving the employer 6 weeks prior notice in addition to the other conditions mentioned in the Industrial Disputes Act, 1947.
The Government has exempted SEZ Units from the payment of stamp duty and registration fees on the lease/license of plots.
External Commercial Borrowings up to $ 500 million a year allowed without any maturity restrictions.
Enhanced limit of Rs. 2.40 crores per annum allowed for managerial remuneration.
more info:
http://sezindia.nic.in/about-fi.asp
30 September 2013
Dear Ramesh
Thanks for your reply and detailed explanation. The issue is I do not need a unit for production of these cameras. I just need a room and a screw driver kit to assemble the whole system. Now going to SEZ would require a lot of investment which we are not looking at.
I will be more than happy to know if there is a facility of having a office in SEZ in india and not an industry or plant like trade free zones in UAE like RAK.
I also thought for a EOU but again they need a minimum land and certain amount of investment in terms of machinery. With my work Since I do not need a very big machinery to set up hence EOU is also ruled out.
Can you guide me if there is any bond or something which I can file with customs so as to get an exemption from import duty for the products to be exported.
Akhil
Thanks for your reply and detailed explanation. The issue is I do not need a unit for production of these cameras. I just need a room and a screw driver kit to assemble the whole system. Now going to SEZ would require a lot of investment which we are not looking at.
I will be more than happy to know if there is a facility of having a office in SEZ in india and not an industry or plant like trade free zones in UAE like RAK.
I also thought for a EOU but again they need a minimum land and certain amount of investment in terms of machinery. With my work Since I do not need a very big machinery to set up hence EOU is also ruled out.
Can you guide me if there is any bond or something which I can file with customs so as to get an exemption from import duty for the products to be exported.
Akhil
30 September 2013
in view of above, you can take the chater-3 licence from exporter and take the sad refund.
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