Rule 7 - Re-export or clearance of unutilised or defective goods - Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017.

2 [7. Re-export or clearance of unutilised or defective goods . (1) The importer who has availed the benefit of an exemption notification shall use the goods imported in accordance with the conditions specified in the concerned exemption notification within six months from the date of import and with respect to unutilised or defective goods so imported, the importer has an option to either re-export such goods or clear the same for home consumption within the said period. (2) The importer who opts to re-export such goods as specified in sub-rule (1), shall record the details of necessary export documents in the monthly statement: Provided that the value of such goods for re-export shall not be less than the value of the said goods at the time of import. (3) The importer who opts to clear the unutilised or defective goods for home consumption as specified in sub-rule (1), shall pay the duty along with interest on the common portal and the particulars of such clearance and the payment of duty shall be recorded by the importer in the monthly statement. (4) The importer has an option to clear the capital goods imported, after having been used for the specified purpose, on payment of duty equal to the difference between the duty leviable on such goods but for the exemption availed and that already paid, if any, at the time of importation, along with interest, at the rate fixed by the notification issued under section 28AA of the Act, on the depreciated value allowed in straight line method, as specified below, namely: - (i) for every quarter in the first year @ 4%; (ii) for every quarter in the second year @ 3%; (iii) for every quarter in the third year @3%; (iv) for every quarter in the fourth and fifth year @ 2.5%; (v) and thereafter for every quarter @ 2%. Explanation. - (i) For the purpose of computing rate of depreciation for any part of a quarter, a full quarter shall be taken into account. (ii) The depreciation shall be allowed from the date when the imported capital goods have come into use for the purpose as specified in the exemption notification upto the date of its clearance. (5) The importer shall, in relation to sub-rule (4) record the particulars of such clearance and payment of duty in the monthly statement. ] ************* NOTES:- 1. Inserted vide Notification No. 09/2021 - Customs (N. T.) dated 01-02-2021 w.e.f. 02-02-2021 2. Substituted vide Notification No. 07/2022 - Customs (N. T.) dated 01-02-2022 w.e.f. 01-03-2022 before it was read as 7. Re-export or clearance of unutilised or defective goods. - (1) The importer who has availed benefit of an exemption notification, prescribing observance of these rules may re-export the unutilised or defective imported goods, within six months from the date of import, with the permission of the jurisdictional Deputy Commissioner of Customs or, as the case may be, Assistant Commissioner of Customs having jurisdiction over the premises where the imported goods shall be put to use for manufacture of goods or for rendering output service: Provided that the value of such goods for re-export shall not be less than the value of the said goods at the time of import. (2) The importer who has availed benefit of an exemption notification, prescribing observance of these rules may also clear the unutilised or defective imported goods, with the permission of the jurisdictional Deputy Commissioner of Customs or, as the case may be, Assistant Commissioner of Customs having jurisdiction over the premises where the imported goods shall be put to use for manufacture of goods or for rendering output service, within a period of six months from the date of import on payment of import duty equal to the difference between the duty leviable on such goods but for the exemption availed and that already paid, if any, at the time of importation, along with interest, at the rate fixed by notification issued under section 28AA of the Act, for the period starting from the date of importation of the goods on which the exemption was availed and ending with the date of actual payment of the entire amount of the difference of duty that he is liable to pay. 1 [ (3) The importer, with the permission of the jurisdictional Deputy Commissioner of Customs or, as the case may be, Assistant Commissioner of Customs having jurisdiction over the premises where the imported goods shall be put to use for manufacture of goods or for rendering output service, may clear the imported capital goods, after having been used for the specified purpose, on payment of duty equal to the difference between the duty leviable on such goods but for the exemption availed and that already paid, if any, at the time of importation, along with interest, at the rate fixed by the notification issued under section 28AA of the Act, on the depreciated value allowed in straight line method, as specified below, namely : - (i) for every quarter in the first year @ 4%; (ii) for every quarter in the second year @ 3%; (iii) for every quarter in the third year @ 3%; (iv) for every quarter in the fourth and fifth year @ 2.5%; (v) and thereafter for every quarter @ 2%. Explanation . - (1) For the purpose of computing rate of depreciation for any part of a quarter, a full quarter shall be taken into account. (2) There shall be no upper limit for such depreciation. (3) The depreciation shall be allowed from the date when the imported capital goods have come into use for the purpose as specified in the exemption notification upto the date of its clearance. ]