Customs - Exemption to reimported goods - Examination by Customs - JNCH Instructions · TIOL-DDT 2790

Customs - Exemption to reimported goods - Examination by Customs - JNCH Instructions

By Vijay Kumar

NOTIFICATION No. 158/95 exempts the goods of Indian origin falling under First Schedule to the Customs Tariff Act, 1975 when re-imported in to India from whole of the duty of customs leviable thereon and from the whole of additional duty of customs leviable thereon for the purpose as specified in Column (2) of the table thereto annexed.

The Table to Notification. No. 158/95-Cus dated 14.11.1995 reads as:

S.No.	Description of goods	Conditions
(1)	(2)	(3)
1.	Goods manufactured in India and parts of such goods whether of Indian or foreign manufacture and re-imported into India for repairs or for reconditioning.	1. Such re-importation takes place within 3 years from the date of exportation; Provided that such re-importation takes place within 10 years from the date of exportation in case of Nepal and Bhutan. 2. Goods are re-exported within six months of the date of re-importation or such extended period not exceeding a further period of six months as the Commissioner of Customs may allow; 3. The Assistant Commissioner of Customs or Deputy Commissioner of Customs is satisfied as regards identity of the goods; 4. The importers at the time of importation executes a bond undertaking to- (a) export the goods after repairs or reconditioning within the period as stipulated; (b) pay, on demand, in the event of his failure to comply with any of the aforesaid conditions, an amount equal to the difference between the duty levied at the time of re-import and the duty leviable on such goods at the time of importation but for the exemption contained herein.
2.	Goods manufactured in India and reimported for (a) reprocessing; or (b) refining; or (c) re-marking; or (a)(d) subject to any process similar to the processes referred to in clauses (a) to (c) above.	1. Such reimportation takes place within one year from the date of exportation. 2. Goods are re-exported within six months of the date of re-importation or such extended period not exceeding a further period of six months as the Commissioner of Customs may allow; 3. The Assistant Commissioner of Customs or Deputy Commissioner of Customs, is satisfied as regards identity of the goods. 4. The importer executes a bond to the effect - (a) that such reprocessing, refining or remaking or similar processes shall be carried out in any factory under Central Excise control following the procedure laid down under rule 173MM of the Central Excise Rules, 1944 or in a Customs bond under provisions of section 65 of the Customs Act, 1962 (52 of 1962); (b) that he shall maintain a due account of the use of the said re-imported goods received in the premises specified in item (a) above and shall produce the said accounts duly certified by the officer of Central Excise or Customs, as the case may be, incharge of the factory or the bonded premises to the effect that the goods tendered for re-import are reprocessed, refined or remade or subjected to any process, as the case may be, from the said re-imported goods; (c) that in case any waste or scrap arising during such operations and the importer agrees to destroy the same before the officer of Central Excise or Customs, as the case may be, or to pay on such waste or scrap the appropriate duties of customs as if such waste or scrap is imported; (d) that he shall pay, on demand, in the event of his failure to comply with any of the aforesaid conditions, an amount equal to the difference between the duty leviable on such goods at the time of importation but for the exemption contained herein. Provided that in case of reprocessing, refining or remaking or similar process, if any loss of imported goods is noticed during such operations, the quantity of such loss shall be exempted from the whole of the duties of customs (basic customs duty and additional customs duty, etc.) subject to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs that such loss has occurred during such operations.

S.No.

Description of goods

Conditions

(1)

(2)

(3)

Goods manufactured in India and parts of such goods whether of Indian or foreign manufacture and re-imported into India for repairs or for reconditioning.

1. Such re-importation takes place within 3 years from the date of exportation;

Provided that such re-importation takes place within 10 years from the date of exportation in case of Nepal and Bhutan.

2. Goods are re-exported within six months of the date of re-importation or such extended period not exceeding a further period of six months as the Commissioner of Customs may allow;

3. The Assistant Commissioner of Customs or Deputy Commissioner of Customs is satisfied as regards identity of the goods;

4. The importers at the time of importation executes a bond undertaking to-

(a) export the goods after repairs or reconditioning within the period as stipulated;
(b) pay, on demand, in the event of his failure to comply with any of the aforesaid conditions, an amount equal to the difference between the duty levied at the time of re-import and the duty leviable on such goods at the time of importation but for the exemption contained herein.

Goods manufactured in India and reimported for

(a) reprocessing; or
(b) refining; or
(c) re-marking; or
(a)(d) subject to any process similar to the processes referred to in clauses (a) to (c) above.

1. Such reimportation takes place within one year from the date of exportation.

2. Goods are re-exported within six months of the date of re-importation or such extended period not exceeding a further period of six months as the Commissioner of Customs may allow;

3. The Assistant Commissioner of Customs or Deputy Commissioner of Customs, is satisfied as regards identity of the goods.

4. The importer executes a bond to the effect -

(a) that such reprocessing, refining or remaking or similar processes shall be carried out in any factory under Central Excise control following the procedure laid down under rule 173MM of the Central Excise Rules, 1944 or in a Customs bond under provisions of section 65 of the Customs Act, 1962 (52 of 1962);
(b) that he shall maintain a due account of the use of the said re-imported goods received in the premises specified in item (a) above and shall produce the said accounts duly certified by the officer of Central Excise or Customs, as the case may be, incharge of the factory or the bonded premises to the effect that the goods tendered for re-import are reprocessed, refined or remade or subjected to any process, as the case may be, from the said re-imported goods;
(c) that in case any waste or scrap arising during such operations and the importer agrees to destroy the same before the officer of Central Excise or Customs, as the case may be, or to pay on such waste or scrap the appropriate duties of customs as if such waste or scrap is imported;
(d) that he shall pay, on demand, in the event of his failure to comply with any of the aforesaid conditions, an amount equal to the difference between the duty leviable on such goods at the time of importation but for the exemption contained herein.

Provided that in case of reprocessing, refining or remaking or similar process, if any loss of imported goods is noticed during such operations, the quantity of such loss shall be exempted from the whole of the duties of customs (basic customs duty and additional customs duty, etc.) subject to the satisfaction of the Assistant Commissioner of Customs or Deputy Commissioner of Customs that such loss has occurred during such operations.

Similarly, Notification No. 153/1994 (Sr. No. 1) dated 13.07.1994, exempts the goods of Foreign origin of the specified description given in column 2 of the table thereto annexed and falling within the First Schedule to the Customs Tariff Act, 1975 when imported into India from the whole of the duty of customs leviable thereon specified in the said Schedule and from the whole of the additional duty leviable thereon under section 3 of the said act, subject to conditions laid down in the corresponding entry in column (3) thereof.

The Sl. No. 1 in the Table to the Notification No. 153/1994-Cus, dated, 13.7.1994is:

S. No.	Description of goods	Conditions
(1)	(2)	(3)
1.	Articles of foreign origin	(i) The importer makes a declaration at the time of import that the said goods are being imported for repairs and return; (ii) the said goods are re-exported within six months of the date of importation or within such extended period not exceeding one year as the Assistant Commissioner of Customs or Deputy Commissioner of Customs may allow; (iii) the Assistant Commissioner of Customs or Deputy Commissioner of Customs is satisfied as regards the identity of the said goods ; and (iv) the importer executes a bond undertaking - (a) to re-export the said goods after repairs within six months of the date of importation or within the aforesaid extended period; (b) to produce the goods before the Assistant Commissioner of Customs or Deputy Commissioner of Customs for identification before re-export; (c)to pay the duty if the re-export does not take place within the stipulated period.

S. No.

Description of goods

Conditions

(1)

(2)

(3)

Articles of foreign origin

(i) The importer makes a declaration at the time of import that the said goods are being imported for repairs and return;

(ii) the said goods are re-exported within six months of the date of importation or within such extended period not exceeding one year as the Assistant Commissioner of Customs or Deputy Commissioner of Customs may allow;

(iii) the Assistant Commissioner of Customs or Deputy Commissioner of Customs is satisfied as regards the identity of the said goods ; and

(iv) the importer executes a bond undertaking -

(a) to re-export the said goods after repairs within six months of the date of importation or within the aforesaid extended period;
(b) to produce the goods before the Assistant Commissioner of Customs or Deputy Commissioner of Customs for identification before re-export;
(c)to pay the duty if the re-export does not take place within the stipulated period.

One of the conditions as laid down in both the notification is that the Assistant Commissioner of Customs or Deputy Commissioner of Customs is satisfied as regards to the identity of the goods in addition to the time limit as specified in the said notification.

It seems in cases of re-export goods where benefit of Exemption Notification No. 158/95-Cus., dated 14.11.1995 or Notification No. 153/94-Cus., dated 13.07.1994 or any other such notification has been availed, are facilitated under RMS and were not opened for examination. But satisfaction of the Assistant Commissioner is mandatory.

The Commissioner of Customs Nhava Sheva in JN Customs directs all the officers working in Export Assessment and Examination to ensure that re-export goods where notification benefit under Notification No. 158/95-Cus., dated 14.11.1995 or Notification No. 153/94-Cus., dated 13.07.1994 has been claimed, should be examined in detail under the supervision of the AC/DC, Export with regard to identity of the export goods with respect to the corresponding import documents.

Please note that the Notification No. 158/1995 mentions Rule 173MM of the Central Excise Rules. Does anybody remember what this Rule 173MM of the Rules rescinded 15 years ago is?

JN Custom House Standing Order No. Dated: February 15 2016