Re-Export Procedure for Garment

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santharam (Querist)
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13 October 2009 Dear All,

we are Garment Exporters, we have Parent company Outside India, recently we had imported Garments(Shirt) from our Parent company which we were selling in our Country. Some of the imported quantities remains with us.

Note: we had imported the said goods(garments) under DEPB.
1.Is there any Customs duty will be applicable?
2.what will be the procedure to re-export the same to our Parent Company.

Rajeev

Rajeev (Expert)
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14 October 2009 Sir , how can u import under DEPB ?
DEPB is an export scheme for exporters( u mentioned that you want to sell in your country) .

I think you mean advance license .

Contact your CHA for further details

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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20 July 2025 Re-exporting imported garments (in your case, shirts) back to your parent company outside India involves certain procedural and compliance steps under Indian customs law. Since these garments were originally imported under DEPB (Duty Entitlement Pass Book) scheme, here's how the re-export procedure would work:

✅ 1. Customs Duty Applicability
Since the goods were imported under DEPB, meaning duty benefits were availed, customs duty was either exempted or reduced at the time of import. Therefore:

Yes, customs duty may become payable or recoverable if you're not able to fulfill DEPB export obligations.
However, if you are re-exporting the goods, you may get relief by following the proper re-export procedure, subject to timelines and approvals.
✅ 2. Procedure for Re-Exporting Imported Garments
You can re-export under Section 74 of the Customs Act, 1962, which allows drawback of import duty paid (subject to conditions), or under other general procedures.

🔹 A. Under Section 74 – Drawback on Re-export of Duty Paid Goods

Goods must be identifiable with the imported goods.
Re-export must be done within 2 years from date of import (extension possible).
Up to 98% of the customs duty paid can be claimed as drawback.
If DEPB benefit was availed and no customs duty was paid, no drawback is allowed.
🔹 B. General Re-Export Procedure (No Drawback)

Since you imported under DEPB, you may simply re-export the goods as a commercial shipment with these steps:

📄 Step-by-Step Re-export Procedure:
Prepare a Shipping Bill:
File a Re-export Shipping Bill on ICEGATE (select the relevant type: drawback, without drawback, warranty return, etc.).
Mention “Re-export of imported goods under DEPB” clearly in the remarks.
Include Supporting Documents:
Original Bill of Entry for import.
Invoice & Packing List (for re-export).
Purchase order (from the parent company, even if symbolic).
Import and export-related Bank remittance details (if any).
DEPB license copy (used at time of import).
Customs Inspection:
Goods will be physically examined and verified against original import documents.
Bond or Undertaking:
You may be asked to furnish a Bond (especially if duty is refundable) or a Letter of Undertaking (LUT).
GST Compliance:
If you had paid GST on import and claimed ITC, you may need to reverse ITC if goods are not used for taxable outward supply.
On re-export, no GST is applicable if under LUT or Bond; else you pay IGST and claim refund.
Export Declaration & EDI Clearance:
File the export through EDI and get the Let Export Order (LEO) from customs.
📝 Key Notes:
No customs duty is payable at re-export, unless you violate DEPB terms.
Since DEPB is no longer active, ensure the goods were imported during the DEPB-valid period, or consult customs.
No drawback is usually available if duty was exempted under DEPB.
Goods should be in original, unused, or saleable condition.

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