Temporary removal of goods/Job work on contract from SEZ to a DTA, Customs - Exim - SEZ

[ram iyer]

We are a manufacturing company located in special economic zone. We use brass rods for our manufacturing process and that generates brass scraps (its in the process of forging and machining). Its the practice of the industry across the globe that the scraps are sent for conversion to the manufacturer for making rods.The customs are not allowing it under temporary removal or under sub contract.

converting saves lot but selling the scrap so generated to the manufacturer is uneconomical and we also have to pay custom duty for removal of goods from Special economic zone.

Kindly advise on priority under which rule we can get the scraps generated converted.

Regards

Ram

Posts / Replies

[Spudarjunan S]

Have you tried the benefit under notification no.32/97- Cus dated 01-04-1997.

[ram iyer]

thanks for your input. The point here is the raw material - brass rods are procured by us from DTA without payment of any duties or taxes under LUT Bond and during our the process of manufacture, we generate brass scraps. When the whole of the industry follows the practice of converting scraps again to brass rods, we fail to understand how customs here disallows the temporary removal of goods or under job work.