CLARIFICATION REQUIRED

This query is : Resolved

Jay tandon (Querist)
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30 January 2020 Importer imported a machine and send back within 3 months for repairs this machine repairing cost is Rs. 10 lakhs and freight charge Rs. 2 lakh but machine under warranty period so no amount charge from Importer. However, Supplier from outside India sent a machine to importer for Temporary use for the period upto repairing of original machine, which having value of Rs. 55 Lakhs

Is Custom duty is applicable on Temporary machine or repairing value

VIJAYALAKSHMI K

VIJAYALAKSHMI K (Expert)
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31 January 2020 Hi

This should be viewed as 2 different shipments.

For the machine reimported after the repair, duty has to be paid on repair charges + to and fro freight +insurance charges. Even if the importer was not charged for the repair, for customs purpose repair cost needs to be declared in the invoice. Identity of the cargo to be provided to Customs.

For import of replacement machine applicable duty needs to be paid at the time of import and after re-export duty drawback shall be claimed. All the documents should clearly mention the machine imported on a temporary basis and will be re-exported within ___ period.

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