Selling of Fully Duty Paid Imported goods as FOC

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Guruprasad

Analyst

39 Points Posted on 06 April 2025

Hi Exprets

Can we sell duty paid imports goods brought as FOC from related party?

Replies (2)

Quick Summary

This discussion explores the sale of imported goods received as Free of Cost (FOC) from a related party, where duties have already been paid. Key considerations include verifying customs regulations for any specific import schemes, ensuring compliance with transfer pricing rules for related party transactions, and understanding the GST implications of the sale. Proper documentation, including proof of duty payment and import records, is crucial.

Rama chary Rachakonda

Master in Accounts & high court Advocate

9620 Points Posted on 21 April 2025

Selling Duty Paid Imported Goods Brought as Free of Cost (FOC) -

*Customs regulations*: Check if the goods were imported under a specific scheme or exemption that allows or restricts sale. -

*Duty paid*: Since duty has been paid, the goods can generally be sold. -

*Related party transaction*: Ensure compliance with transfer pricing regulations and arm's length principle. Considerations -

*Commercial invoice*: Verify if a commercial invoice was raised for the import, even if it was FOC. -

*GST implications*: Consider GST implications on the sale of imported goods. -

*Documentation*: Maintain proper documentation, including proof of duty payment and import records. Recommendations -

*Consult customs broker*: Consult a customs broker or trade expert to ensure compliance with customs regulations. -

*Verify import documents*: Verify import documents, including the bill of entry and commercial invoice. -

*GST compliance*: Ensure GST compliance on the sale of imported goods.