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Duty drawback/export incentives in case of goods imported and sold to nepal

abhinava (PARTNER) (22 Points)

29 January 2019

Dear All,

One of my clients, dealing in chemicals, wish to import some chemicals and after some manufacturing process, the same will be exported to Nepal. Please give your expert views on following points :-

1. Will custom duty paid at the time of import be refunded to them if export proceeds are received in foreign currency from Nepal ? If yes, under which scheme and conditions ?

2. Will they get any additional export incentives for exporting above material to Nepal ?

Kindly guide me on above matter.

Regards,

CA Abhinava

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3 Replies

Sanyam Gupta (63 Points)
Replied 29 January 2019

Exporters are issued special licenses for importing goods without payment of custom duty and such are called import entitlement licenses and exporters are allowed to sell them and profit gained shall be considered income under head business and profession

Sanyam Gupta (63 Points)
Replied 29 January 2019

Gst paid shall also be refunded

CS M Pota (Company Secreatary) (3180 Points)
Replied 30 January 2019

If raw material imported from Nepal is used in manufacturing of Final Product and the raw material is easily identifiable that the raw material is the same which was imported at the time of export of the final product to any country out side India you can have duty Drawback as per Section 75 of the Customs Act 1962of the duty paid at the time of import of the material raw material.

If export is effected to Nepal and export prodceeds is realised in FREE FOREIGN CURRENCY the export benefit like duty drawback other then stated above and MEIS is available.