Re-export after Contract Execution
[The
Current Notification 72/2017-Customs dated 16.08.2017 Supersedes Previous
Notification 27/2002-Customs dated 01.03.2002]
[Customs
Notification No. 72 dated 16th August 2017]
In
exercise of the powers conferred by sub-section (1) of section 25 of the
Customs Act, 1962 (52 of 1962), and in supersession of the notification of the
Government of India in the Ministry of Finance (Department of Revenue),
No.27/2002 – Customs dated the 1st March, 2002 published in the Gazette of
India, Extraordinary, Part II, Section 3, Sub-section (i),
vide number G.S.R. 124(E), dated the 1st March, 2002 except as respects things
done or omitted to be done before such supersession, the Central Government,
being satisfied that it is necessary in the public interest so to do, hereby
exempts goods of the description specified in column (1) of the Table annexed
hereto, from the payment of so much of the customs duty leviable thereon under
First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as specified in
column (3) of the said Table and from the whole of the integrated tax leviable
thereon under sub-section (7) of section 3 of the Customs Tariff Act, 1975
subject to the limitations and conditions specified in column (2) thereof,
namely:-
|
Table |
||
|
Description
of goods |
Limitations
and conditions |
Extent
of exemption |
|
(1)
|
(2)
|
(3)
|
|
Machinery,
equipment or tools, falling under Chapters 84, 85, 90 or any other Chapter of
the First Schedule to the Customs Tariff Act, 1975 (51 of 1975). |
(1)
the goods have been taken on lease by the importer for use after import; (2)
the importer makes a declaration at the time of import that the goods are
being imported temporarily for execution of a contract; (3)
the import of such machinery, equipment or tools is covered under item (b) of
clause 1 or item (f) of clause 5 of Schedule II of the Central Goods and
Services Act, 2017; (4)
the said goods are re-exported within three months of the date of such import
or within such extended period not exceeding 18 months from the date of said
import, as the Assistant Commissioner of Customs or the Deputy Commissioner
of Customs, as the case may be, may allow; (5)
where the Assistant Commissioner of Customs or the Deputy Commissioner of
Customs, as the case may be, grants extension of the aforesaid period for
re-export, the importer shall pay the difference between the duty payable
under the relevant clause in column (3) and the duty already paid at the time
of their import; (6)
the importer executes a bond, with a bank guarantee, undertaking– (a)
to pay integrated tax leviable under sub-section (1) of section 5 of the
Integrated Goods and Services Act, 2017 on supply of service covered by items
1(b) or 5(f) of Schedule II of the Central Goods and Services Act, 2017; (b)
to re-export the said goods within three months of the date of import or
within the aforesaid extended period; (c)
to produce the goods before the Assistant Commissioner of Customs or the
Deputy Commissioner of Customs for identification before re-export; (d)
to pay the balance of customs duty, along with interest, at the rate fixed by
notification issued under section 28AA of the Customs Act, 1962, for the
period starting from the date of import of the said goods and ending with the
date on which the duty is paid in full, if the re-export does not take place
within the stipulated period; and (e)
to pay on demand an amount equal to the integrated tax along with applicable
interest payable on the said goods but for the exemption under this
notification in the event of violation of any of the above conditions. |
In
the case of- (i) goods which are re-exported within three months of the
date of import, so much of the duty of customs as is in excess of the amount
calculated at the rate of five per cent.; (ii)
goods which are re-exported after three months, but within six months, of the
date of import, so much of the duty of customs as is in excess of the amount
calculated at the rate of fifteen per cent.; (iii)goods
which are re-exported after six months, but within nine months, of the date
of import, so much of the duty of customs as is in excess of the amount
calculated at the rate of twenty-five per cent.; (iv)
goods which are re-exported after nine months, but within twelve months, of
the date of import, so much of the duty of customs as is in excess of the
amount calculated at the rate of thirty per cent.; (v)
goods which are re-exported after twelve months, but within fifteen months,
of the date of import, so much of the duty of customs as is in excess of the
amount calculated at the rate of thirty-five per cent.; (vi)
goods which are re-exported after fifteen months, but within eighteen months,
of the date of import, so much of the duty of customs as is in excess of the
amount calculated at the rate of forty per cent., of
the aggregate of the duties of customs, which would be leviable under the
Customs Act, 1962 read with any notification for the time being in force in
respect of the duty so chargeable. |
Note:
The goods imported under this concession shall not be eligible for drawback
under sub-section (2) of section 74 of the Customs Act, 1962.
[F.No.354/186/2017-TRU]