Re-export of Imported Material, Customs - Exim - SEZ

[GANESH IYER]

Sir

One of our esteemed customer want to export material against import. The material was imported during the month of May-2016 and bonded the same at JNPT. The unit price at the time of import was @ $ 11.32 and the total quantity was 2704 Pieces. As there is no local orders for the subject material in the market and they got an export order from UAE at a unit price of $11.27 Per Piece, they decide to execute the subject export order.

We have approached JNPT customs for the necessary Permissions for the re-export and they have raised query regarding the value of the exporting price is less compared to the imported price.The variation in price is very negligible ie $0.05 Per Unit totalling to $ 135.20 ( 2704* $0.05) . The consignment is very critical to the customs and the same should reach UAE before 28th of this month otherwise the UAE customer will cancel this order too.

Please revert with your valuable suggestions regarding custom valuation and FEMA regulations to enable us to clear this shipment

Posts / Replies

[surya narayana]

Dear Friend,

In my view there should not be any issue for export of imported material from Customs Bond and it is permissible.

Further, there should not be any restrictions on the export value since it is a business call. You may give a letter informing the customs on the proposed export narrating the reasons for such proposal and justify the price etc.,

With regard to FEMA, I do not foresee any issue since you might have made the payment to foreign supplier as per the invoice in Foreign currency and you are under obligation to submit the proof of realization of export proceeds on such proposed export.

Best Regards

Suryanarayana

[Kishan Barai]

No issues at all. You can easily export it to UAE.

I assume that your goods are placed in custom bonded warehouse, no need to file Ex bond. Directly generate LEO via Shipping bill VI's custom broker.

Take help of good custom broker to convince JNPT staff.

Provide justification in your firm letter head.

I also appreciate the view of suryanarayan sir

Cordially Yours,

Kishan Barai