Re-export of defective parts/spares not mandatory
THE Central Government has amended paragraph 2.38 of Foreign Trade Policy, 2009-2014 to read -
"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."
The effect of this addition shown in red italic is that it is not mandatory to re-export defective parts/spares imported exclusively for undertaking root cause analysis, testing and evaluation purpose by the Companies/firms and Original Equipment Manufacturers.
Notification 24/(RE-2013)/2009-2014, Dated: June 19, 2013