In some occasions goods exported out of India are returned back for various reasons like
- Cancellation of Export Order
- For any Trade Disputes like Quality Reasons, Default of Payments, Non-Conformance to any Contractual Terms
- After Exhibition / Display in overseas Country
- Return after Project / Contract Closure or Completion
- Re-import of Exported Goods for Repairs, Reconditioning, Reprocessing
- Imported Goods sent abroad within Warrantee Period and Re-import after repair
- Because of some Certain Compliance / Regulatory / Restrictions in the Importing Country etc.,
SECTION 20 of Customs Act 1962, refers to Re-importation of Goods, which states If goods are imported into India after exportation therefrom, such goods shall be liable to duty and be subject to all the conditions and restrictions, if any, to which goods of the like kind and value are liable or subject, on the importation thereof. Thus according to this section normal customs duty under Section 12 of Customs Act, 1962 shall be payable on re-import of exported goods. However certain concessions and exemptions are available for Re-import as per following Notifications :
| Notification No. and Date of Issue | Subject |
| 47-Cus,dt. 30-06-2017 | Seeks to grant exemption to re-import of goods in Fourth schedule exported under duty drawback, rebate of duty or under bond |
| 46/2017-Cus,dt. 30-06-2017 | Seeks to grant exemption to re-import of goods exported under duty drawback, rebate of duty or under bond on or before the 30th June 2017 |
| 45/2017-Cus,dt. 30-06-2017 | Seeks to grant exemption to re-import of goods exported under duty drawback, rebate of duty or under bond on or after the 1st July 2017 |
| 44/2017-Cus,dt. 30-06-2017 | Seeks to amend specified exemption notifications relating to re-import of personal private property, articles supplied free under warranty, free gifts, donations by charitable organisations etc. |
| 43/2017-Cus,dt. 30-06-2017 | Seeks to amend Specified exemption notifications relating to re-import, bilateral/ multilateral agreements, imports by defence, security, sportsperson to |
Let us here discuss about re-import on or after the 1st July 2017 – that is after implementation of GST. The general principle is that the exporters who re-import after export should not get away with any benefits which may have been given as an export incentive or exemption or any other benefits like duty drawback / rebate claims, export under bond or under other export incentive claims, duty exemption schemes, EPCG scheme etc and then these benefits should be recovered by way of duty.
Notification No. 45/2017 – Customs; dt 30th June, 2017 covers different scenarios under which exports are made and applicable Customs Duty Payable upon Re-import of such goods. These provisions are shown in following Table :
| Sl. No. | Description of goods | Conditions |
| (1) | Goods exported | Custom Duty Payable on Re-Import |
| (a) under claim for drawback of any customs or excise duties levied by the Union | amount of drawback of customs or excise duties allowed at the time of export;
|
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| (b) under claim for drawback of any excise duty levied by a State | amount of excise duty leviable by State at the time and place of importation of the goods. allowed at the time of export; | |
| (c) under claim for refund of integrated tax paid on export goods | amount of refund of integrated tax, availed at the time of export; | |
| (d) under bond without payment of integrated tax | amount of integrated tax not paid; | |
| (e) under duty exemption scheme (DEEC/ Advance Authorisation/ DFIA) or Export Promotion Capital Goods Scheme (EPCG) | amount of integrated tax and compensation cess leviable at the time and place of importation of goods and subject to the following conditions applicable for such goods – | |
| (i) DEEC book has not been finally closed and export in question is de-logged from DEEC Book; Advance Authorisation/DFIA has not been redeemed and the authorisation holder has not been discharged from the export obligation by DGFT; | ||
| (ii) In case of EPCG scheme the period of full export performance has not expired and necessary endorsements regarding reimport have been made; | ||
| (iii) The importer had intimated the details of the consignment re-imported to the Assistant Commissioner of Customs or Deputy Commissioner of Customs in charge of the factory where the goods were manufactured or the premises from where the goods were supplied and to the licensing authority regarding the fact of reimportation and produces a dated acknowledgement of such intimation at the time of clearance of goods; | ||
| (iv) The manufacturer- exporters may be permitted clearance of such goods without payment of Central Excise duty or integrated tax and compensation cess under transit bond to be executed with the Customs authorities at the port of importation, such bond will be cancelled on the production of certificate issued by the jurisdictional Customs authority about receipt of reimported goods into their factory or the premises from where the goods were supplied. | ||
| 2 | Goods, other than those falling under Sl. No. 1 exported for repairs abroad | Duty of customs which would be leviable if the value of re-imported goods after repairs were made up of the fair cost of repairs carried out including cost of materials used in repairs (whether such costs are actually incurred for not), insurance and freight charges, both ways. |
| 3 | Cut and polished precious and semi-precious stones exported for treatment abroad as referred to in Paragraph 4A.20.1 of the Foreign Trade Policy, other than those falling under Sl. No. 1. | Duty of customs which would be leviable if the value of re-imported precious and semiprecious stones after treatment were made up of the fair cost of treatment carried out including cost of materials used in such treatment, whether such costs are actually incurred for not, insurance and freight charges, both ways. |
| 4 | Parts, components of aircraft replaced or removed during the course of maintenance, repair or overhaul of the aircraft in a Special Economic Zone and brought to any other place in India. Explanation.- For the purpose of this notification, “Special Economic Zone” has the meaning assigned to it in clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005) | Full Customs Duty |
| 5 | Goods other than those falling under Sl. No. 1, 2, 3 and 4 | Full Customs Duty |
Some Salient Features :
The above concessional duty or exemptions are applicable subject to certain conditions to be fulfilled. Some of them are :
> This notification shall come into force with effect from the 1 st day of July, 2017
> The goods are the same which were exported. The onus of proof is on the Re-importer with satisfactory evidence is produced before the authorities.
> The Period of Re-import :
In case of goods exported under the Duty Exemption Scheme (DEEC / Advance Authorisation / DFIA) or Export Promotion Capital Goods Scheme (EPCG) or Duty Entitlement Passbook Scheme (DEPB) or any reward scheme of Chapter 3 of Foreign Trade Policy: Re-importation of such goods takes place within one year of exportation or such extended period not exceeding one more year.
In all other cases, the goods other than those exported under Duty Exemption Scheme (DEEC / Advance Authorization / DFIA) or Export Promotion Capital Goods Scheme (EPCG) or Duty Entitlement Passbook Scheme (DEPB) or any reward scheme of Chapter 3 of Foreign Trade Policy : re-imported within three years after their exportation or within such extended period, not exceeding two years
> Goods subject to Re-manufacturing or Reprocessing :
The goods shall not be deemed to be the same if these are re-imported after being subjected to re-manufacturing or reprocessing through melting, recycling or recasting abroad
> The beneficial provisions in this notification shall NOT apply to re-imported goods in following cases :-
(a) which had been exported by a hundred percent export-oriented undertaking or a unit in a Free Trade Zone as defined under section 3 of the Central Excise Act, 1944 (1 of 1944);
(b) which had been exported from a public warehouse or a private warehouse appointed or licensed, as the case may be, under section 57 or section 58 of the Customs Act, 1962 (52 of 1962);
(c) which fall under the Fourth Schedule to the Central Excise Act, 1944 (1of 1944). (Non- GST Items)
Disclaimer : The views and opinions; thoughts and assumptions; analysis and conclusions expressed in this article are those of the authors and do not necessarily reflect any legal standing.
Author : SN Panigrahi, GST Consultant, Practitioner, Corporate Trainer & Author
Can be reached @ [email protected]
Author Bio
We exported polished granite with payments IGST, But due to some technical issue the product was returned, we availed the all export benefits like DBK/MEIS & IGST refund for the above export. what are all the tax implications while re import the same. shall we repay the IGST refund?. We have raise any sales return invoice(export return) . Please advise…
We exported manufactured goods to Bahrain and customer rejected goods under condition of wrong product dispatched, do we required to pay IGST while re-import of goods
We have exported to Australia and the it is expected to return to us because of some Certain Quality Compliance / Regulatory / Restrictions in the Importing Country etc., The good that are returning are not worth the expense incurring on return, but importer find the disposal charges heavy in his country. what do you suggest for this situation. ImporWhat will be the duty?
Hello,
I would like to know that whether Duty exemption is allowed for the goods which are sent for Calibration and return / Repair and Return u/s 051/96 for R&D Purpose in a research Institute.
Regards,
Shwetha H R
We have exported two containers(fcls)40feeter 26mt each with frozen ribhon fish whole, fcls have reached on 29th nov2020, now buyer don’t have money to pay, in this case how can we return our cargo back to India? Anybody pls advice on this regards
SIR,
WE HAD EXPORTED STEEL FORGINGS PRODUCTS UNDER LUT TO USA SINCE 2010. THAT GOODS HAS BEEN RETURNED TO INDIA AFTER THREE FOR RACTIFICATION( HEAT tREATMENT) AFTER RACTIFICATION MATERIAL REURN BACK TO USA WITHOUT ANY CHARGES .. PLEASE ADVISE WHAT IS THE CORRECT PROCEDURE..
WE HAVE RECENTLY EXPORTED GOODS TO PAKISTAN THAT GOODS HAS BEEN RETURNED TO INDIA AFTER TWO MONTHS WE HAVE EXPORTED THE GOODS UNDER LUT, FROM PAKISTAN DUE TO TRADE SANCTIONS.
TO CLEAR THE CUSTOMS FORMALITIES THEY HAVE INSISTED US TO PAY DUTY AND MIES AMOUNT WHICH WE HAVE NOT CLAIMED.
AFTER THE PAYMENT OF DUTY AND MIES THEY HAVE RELEASED THE CARGO NOW HOW TO CLAIM THE AMOUNT FROM THE CONCERNED DEPARTMENT.
FURTHER THAT CREDIT OF DUTY IS NOT SHOWN IN GST 2A AUTO DRAFT. KINDLY ADVICE US SIR
I want export parts for repair & bring back. what is the process?.
Hello,
I am from Mumbai and in the start of this year, we had imported GPS Reciver from china and shipped it to our client in Gujarath City. Our client had installed our GPS Device to their machinery and exported that machinery to their client in Thailand.
After few months Thailand client wanted an upgraded GPS reciever device and we had also given them upgraded device via our Gujarath client.
Now Thiland client are sending us back our old GPS Receiver device in replacement of new upgraded GPS device.
Can you please let me know what would be the process and documention required for Re importing of old GPS receiver device?
Hello
I would like to know that we can re import the goods for repair and reexport the same buyer but country of destination is different after repair and the goods is earlier exported by us in the year 2013-14 to 2015-16. I can take benefit of notification no. 158/95 dtd 14.11.95 as amended without payment of duty against bond.
Hi need info on re-import goods from exhibition…will the gst be claimable
We exported the automobile products with payments IGST, But due to some technical issue the product was rejected, we availed the all export benefits like DBK/MEIS & IGST refund for the above export. what are all the tax implications while re import the same.
shall we pay any customs duty or we have to repay the DBK/IGST refund.
Please advise…
M.RAMESH
Hello,
I would like to know if someone exports a machine to Nepal and later its known that the machine does not work properly. Can that machine be brought back to India for repair . And again sent back.