Re-importation of indigenously manufactured/imported goods - CBEC's Customs Manual 2023 - Customs

2. Re-importation of indigenously manufactured/imported goods: 2.1 Under Section 12 of the Custom Act, 1962 import duties of Customs are leviable on all import goods, and no distinction is made whether the goods being imported had discharged duties earlier are being re-imported after exportation for particular purposes. Similarly, even if goods are indigenously manufactured which had been exported earlier under various export incentive schemes or duty drawback claim or even without any export incentive claim, when these are re-imported they attract the Customs duty leviable on like import goods (as the duty is on the act of importation) unless an exemption notification is issued. 2.2 To avoid incidence of double duty on re-imported goods such when sent abroad for repairs, certain relief from duty has been provided. Similarly, where the goods are indigenously manufactured, they should bear the Central Excise or GST duties, as applicable, which may not have been discharged at the time of exportation. Further, the exporters should not retain any benefits obtained as an export incentive if the goods are re-imported. 2.3 The salient elements of the duty exemption governing the re-imported goods are as follows: (i) On re-import of indigenously manufactured goods under duty Drawback/claim of refund of integrated tax paid, export under bond or under other claim of export incentives, essentially the duties equivalent to the export incentives etc. availed have to be paid, on re- importation. Thus, if the goods were exported on payment of GST, without claiming any rebate, and without claiming any export incentives such as Drawback or benefits of the duty exemption schemes, EPCG schemes, and where the indigenously manufactured goods are being returned then no Customs duties are leviable. Further, when the indigenously manufactured goods are exported for repair and returned without claiming any benefits, duty is to be paid on a value comprising fair cost of repairs including cost of materials used in repairs, insurance and freight charges both ways. Similarly, in case of re-import of cut and polished precious and semi-precious stones exported for treatment abroad as referred to in Paragraph 4A.20.1 of the Foreign Trade Policy, duty is to be paid on a value comprising of the fair cost of treatment carried out including cost of materials used in such treatment, insurance and freight charges, both ways. Basically the benefit is available if the Assistant/Deputy Commissioner of Customs is satisfied that the goods are the same which were exported earlier and certain other conditions as laid down in the relevant notification are fulfilled. [Refer Notification No.45/2017-Cus, dated 30.06.2017] (ii) Similar duty exemption provisions in case of re-import of the goods falling within the Fourth Schedule to the Central Excise Act, 1944 (1of 1944) are contained in Notification No.47/2017-Cus, dated 30.06.2017. (iii) Goods manufactured in India or parts thereof that are re-imported for repairs or reconditioning or reprocessing/refining/remaking etc. are exempt from duty subject to the condition that the re-importation takes place within a specified period; the goods are reexported within six months of re-importation; the Assistant/Deputy Commissioner of Customs is satisfied as regards the identity of the goods; and certain other conditions ensuring re-export including execution of bonds are fulfilled. [Refer Notification No.158/95-Cus, dated 14-11-1995 as amended vide Notification 43/2017-Cus dated 30.06.2017] (iv) Re-imported private personal property, which was imported earlier but exported out for any alteration, renovation, repair free of charge etc. is exempt from duty subject to the condition that the goods are repaired on free of charge basis in accordance with the terms of warranty given by the manufacturers and in accordance with the established trade practice and Drawback or other incentives have not been availed. However, certain Custom duties equivalent to the cost of alterations/renovations/additions/repairs, if any, are payable. [Refer Notification No.174/66-Cus. dated 24-9-1966] as amended vide Notification 44/2017-Cus dated 30.06.2017