Q. We have imported some scientific instruments for R&D purposes under the notification 51/96-Cus dated July 23, 1996. Now, we want to send them abroad for repairs. We are aware that re-import can be done under notification 45/2017-Cus dated June 30, 2017. What is the procedure to be followed for sending the instruments abroad?
From the GST angle, there is no supply. So you have to remove the goods from your premises to the port under delivery challan and e-way bill. You have to obtain a GR waiver from your bank and submit it to the Customs when you file a free shipping bill, as no payment will come against the exports.
You have to tick the right box in the shipping bill to show that it is not an outright sale or export on consignment basis, so as to make sure the shipping bill does not enter the EDPMS. Finally, and this is very important, you must mention the identification number of the instrument, so that at the time of re-import you will not have difficulty in proving that the identity of the re-imported goods is the same as the goods exported.
Q. We have a SEZ unit and a DTA unit. We want to use the balances in the foreign currency account of our SEZ unit towards making payments for the imports of our DTA unit, as well as for lending to the DTA unit. Can we do it?
No. Para 3.10 of the RBI FED Master Direction no.14/2015-16 dated January 1, 2016 says that funds held in the foreign currency accounts of SEZ units cannot be loaned or made available to any person or entity resident in India, not being a unit in Special Economic Zones. These can be used for bonafide trade transactions between the SEZ unit and a person resident in or outside India.
Q. We have received an order from a party in Dubai with instructions to ship the goods to Thailand. The party wants us to furnish a certificate of Indian origin (COO), so that the importer in Thailand can clear the goods under the India-Asean trade agreement. However, he does not want the price at which we sell to the Dubai party to be revealed to the Thailand importer. The COO format allows us to declare “third-country invoicing” but requires us to declare the FOB value, which we can derive only from the price at which we sell to the Dubai party. We do not know the price at which the Dubai party sells to the Thailand party. How to overcome this problem?
I cannot think of an immediate solution to the problem, unless you and the Dubai party rethink this “bill-to ship-to” model involving customs clearance in the importing country at lower or nil duty under a free trade agreement. I suggest that you write to the Commerce Ministry explaining your problem and follow up vigorously for a proper response.