Re-imports for Repairs - CBEC Circular
The
Department of Revenue issued the following circular to clarify notification 158
dated 14 November 1995.
127-CBEC I am directed to refer to Notification No. 158/95-Customs
14.12.1995 dated 14.11.1995 issued in
supersession of Notification No. 98/95-Customs, dated 26.5.1995 for exemption
from the
(DoR) whole of duties goods
manufactured in India, when re-import into
India
for the purpose of repairs, reconditioning, reprocessing, refining, re-making
or similar process.
As may be seen the new notification considerably enlarges the scope of
processes carried out for the purposes of re-export of re-imported goods of
Indian origin. New notification provides for due accountal
of the goods during such processes as well as it provides for exemption of duty
on loss of quantity of re-imported goods, if any, during such process.
2. The new Notification
No.158/95-Customs, dated 14.11.95 basically contains the following two
situations-
(1) it exempts the goods manufactured in India and parts of such
goods whether of Indian or foreign manufacture which were earlier exported from
India and re-imported into India for the purpose of repair or for
re-conditioning, from the levy of duty of customs including additional duty of
customs subject to the following conditions-
(i) the re-importation takes place
within three years from the date of exportation.
(ii)
after the process of repairs or re-conditioning the goods are re-exported
within six months of the date of re-importation or such extended period not
exceeding a further period of six months as Commissioner of Customs may allow.
(iii) the identity of goods is established to subject to
satisfaction of Assistant Commissioner Assistant Commissioner of Customs
(iv) the importers have to execute a bond undertaking at the time
of importation to-
(a) export
the goods after repairs or reconditioning within the stipulated period.
(b) pay
on demand in the event of his failure to comply with the conditions of
notification, the difference between the duty levied at the time of re-import
and the duty leviable on such goods at the time of
re-importation but for the exemption given above.
(v) the
Board desires that the value of the bond should be approximately the amount of
duty likely to be involved. The value of bank guarantee shall be 25% of this bond.
3. The notification exempts goods
manufactured in India and re-imported for the purpose of (a) re-processing; or
(b) refining; or (c) re-making etc. subject to the following conditions-
(i) Such re-importation takes place within one year from the
date of exportation;
(ii)
Goods are re-exported within six months of the date of re-importation or such
extended period not exceeding a further period of six months as the
Commissioner of Customs may allow;
(iii)
The Assistant Commissioner of Customs is satisfied as regards identity of the
goods;
(iv)
The importer
executes a bond to the effect that -
(a) such processes
shall be carried out in a factory under Central Excise control following the
procedures laid down under Rule 173MM of Central Excise Rules, 1944 or in a
customs bond u/s of 65 of the Customs Act, 1962.
(b) he
shall maintain a due account of the said re-imported goods and shall produce it
duly certified by the Officer of Central Excise or Customs.
(c) in
case any waste or scrap arises during such process either the same is to be
destroyed before the Officer of Central Excise or Customs or to clear it on
payment of appropriate amount of customs duty leviable
on such waste or scrap.
(d) the
importer in event of his failure has to pay an amount equal to the difference
between the duty leviable on such goods at the time
of re-importation but for the exemption contained therein.
(v)
The Board desires that the value of the Bond should be approximately the amount
of duty likely to be involved. The value of bank guarantee shall be 25% of this
Bond.
(vi)
The loss in
quantity during such process is exempted from customs duty and additional
customs duty.
4. The main difference in the earlier
Notification 98/95-Customs, dated 26.5.1995 and the present Notification
158/95-Customs is that the earlier notification provided for the cases in which
the goods are re-imported for the purpose of repairs and re-export but the new
notifications has enlarged the scope of process to be carried out. It now
covers not only repairs but the processes like reconditioning, reprocessing,
dyeing, refining, remaking or similar process. It covers goods like dyes,
chemicals, pharmaceuticals etc. which were earlier exported and required to be
re-imported for carrying out any one of the above-mentioned processes. Period
of one year reduced to six months. This restriction would apply prospectively
only & does not apply for imports already done.
5. The new notification even covers
situation like the goods re-imported for the purpose of changing the packing of
goods earlier exported. It also covers the remaking of tablets of medicines
which got damaged during transportation or otherwise. It also covers the cases
of re-import of chemicals which are required to be reprocessed.
6. The provisions of this notification
would also apply in case of re-import of goods which were earlier exported
under any scheme like DEEC, 100% EOU etc., subject to fulfillment of the
conditions prescribed in the notification.
7. It is expected that with the new
notification there should not by any difficulty in clearance of goods
re-imported for the purpose of re-export after carrying out certain processes.
The aforesaid notification and their implications may be immediately brought to
the notice of departmental officers and also the trade by issue of suitable
standing order/notices. In case of any difficulty in implementation of
notification the Board may be suitably informed.
This circular rescinds
earlier Circular No. 61/95, dated 6.6.95 issued on the same subject.