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TMI BlogFTA benefit for a sub part importedX X X X Extracts X X X X X X X X Extracts X X X X ..... ABC in India got order to supply certain Final Units to XYZ In India. ABC shall be importing two parts namely (a) Unit-1 (2) Unit-02 from its affiliated companies, located outside India. Unit-1 will be imported from Korea and Unit-2 will be imported from Vietnaam. The components shall be assembled at XYZ location to form a Final Unit. The Company classified the said parts in the heading appropriat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to the function being performed by Final Unit and the HSN for the same is 851762 . However, if each part were to be imported individually, not for the purpose of assembly into a Final Unit, they would be classified under different HSN codes: 851779 for the Unit-1 and 851779 for the Unit-2. ABC is currently meeting the FTA conditions under India Korea CEPA for Unit-1 and not for Unit-2. Whether t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Company can claim exemption under the said FTA for Unit-1. Is there is any risk in this transaction - Reply By Shilpi Jain - The Reply = It looks that the parts are imported from different exporters. In such case as per your explanation will that not fall under HSN 851779 as being imported individually? - Reply By Narayana Chambers - The Reply = The NN 152/2009, Customs, dated 31-12-2009 , pres ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cribes the exemption to goods imported from Republic of Korea into India, under the India-Korea CEPA. Based on your query, we understand that the goods to be imported would be classified under HSN: 8517 79. In this regard, as per the NN 152/2009, the goods falling under Heading 8517 are not covered. The relevant portion of NN is quoted as under: SNo. Chapter, Heading Description of Goods Rate 821 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 851690 All Goods 0.00 822 851821 All Goods 0.00 Therefore, we conclude that goods falling under Heading 8517 are NOT eligible for exemption under India-Korea CEPA. You may proceed accordingly. - Reply By Abhijeet Mane - The Reply = Dear Narayana Chambers , Thank you for your detailed comments and time invested in the query, can we take benefit of Notification No Notification No. 151/2009-Customs N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew Delhi. In the said notification HSN 8517 All Goods are covered - Reply By Narayana Chambers - The Reply = Dear Abhijeet-ji, Your understanding is correct. The goods classified under Heading 8517 , would be exempt upon import into India, under India-Korea CEPA, (Entry no. 59, NN: 151/2009, Customs (Tariff), dated 31-12-2009 ). Our earlier opinion stands amended. The part imported in India from R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epublic of Korea, classifiable under Heading 8517 , would be EXEMPT. - FTA benefit for a sub part imported - Query Started By: - Abhijeet Mane Dated:- 17-7-2024 Last Replied Date:- 19-7-2024 Customs - Exim - SEZ - Got 4 Replies - Customs - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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