No Mandatory Re-export of Parts for Testing and Evaluation in Previous Export of Parts Found Defective

[DGFT Notification No. 24 dated 19^th June 2013]

Subject: Amendment in Para 2.38 of Foreign Trade Policy, 2009-2014.

In exercise of powers conferred under Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 read with paragraph 2.1 of the Foreign Trade Policy, 2009-2014, as amended from time to time, the Central Government hereby makes the following amendment in paragraph 2.38 of Foreign Trade Policy, 2009-2014:

2. The existing sentence in Para 2.38 of Foreign Trade Policy, 2009-2014 will be followed by:

“However, re-export of such defective parts/spares by the Companies/firms and Original Equipment Manufacturers shall not be mandatory if they are imported exclusively for undertaking root cause analysis, testing and evaluation purpose.”

3. After the amendment, Para 2.38 of Foreign Trade Policy, 2009-2014 shall be as under:

“Goods or parts, except restricted under ITC (HS) thereof, on being exported and found defective, damaged or otherwise unfit for use may be imported for repair and subsequent re-export. Such goods shall be allowed clearance without an Authorisation and in accordance with customs notification. However, re-export of such defective parts/spares by the Companies/firms and Original Equipment Manufacturers shall not be mandatory if they are imported exclusively for undertaking root cause analysis, testing and evaluation purpose.”

4. Effect of this Public Notice

Defective parts/spares imported exclusively for undertaking root cause analysis, testing and evaluation purpose by the Companies/firms and Original Equipment Manufacturers may not be re-exported.