Dated 10th February 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, both ways.
SOURCE: GOVT. OF INDIA, Ministry of Finance