NO GR /EDF Waiver, Customs - Exim - SEZ

[JAYANTA BANDYOPADHYAY]

Initial import was found defective and sent to Italy for repair under GR Waiver, When reimported, again found defective. This time Foreign Party wants to utilise their Indian arms to lift the materials from Importer's warehouse and arrange a replacement on DDP basis where we need not for GR/EDF Waiver

Is it permissible -Please guide

Posts / Replies

[YAGAY andSUN]

Yes, it is permitted transaction. However, you need to keep you AD in loop for issuance of GR Waiver and for closure of IDPMS and EDPMS accurately.

[JAYANTA BANDYOPADHYAY]

Sir

Initially, foreign equipment supplier mentioned about repair-refurbishment -accordingly, we mentioned and Bank issued EDF -GR Waiver certificate

Now, there is a major overhaulment-could be improved version and party is billing Euro 160000 i.e. ₹ 1.3 Crore approx. None will believe it as fair repair cost

What is the way out? There will be matching identification issue

Kindly guide

Regards,

Jayanta bandyopadhyay

31/8/2020

[JAYANTA BANDYOPADHYAY]

Foreign Vendor now mentions that it is a major overhauling - almost a new equipment costing Euro 200000 i.e. ₹ 1.60 Crores above

Does RBI's Master Policy-EDF / GR Waiver pemits such a complete upgradation or it is only for minor repair- as No forex involvement declaration given at the time of application now goes over a toss

Kindly guide

Rgds

Jayanta Bandyopadhyay

Kolkata

28/9/2020