The Finance Ministry on Wednesday eased the rules for import of exported electronic goods. The mandate issued by the Central Board of Indirect Taxes and Customs (CBIC) states that the exported goods can be imported without any duty on a condition that they will be re-exported after repairs.
As per the notification, The goods sold overseas can be imported back within 7 years of its export. Moreover, these products should be sent back within one year of their import. Prior to this CBIC allowed imports of such good within 3 years of their export. The duration to re-export was limited to 6 months.
The importers of such goods have to commit to re-export within one year of import by executing a bond. The violation of the bond will make importers liable to pay customs duty.
As quoted by Economic Times, EY Tax Partner Abhishek Jain said: This is quite a welcome move for the manufacturer exporters, who now have a longer buffer period for duty-free reimportation of exported goods and also an extended lead period to undertake repair and reconditioning in India”
The notification covers goods such as smartphones, LED TV, some medical devices which are imported back for repairs and refurbishment.
Some time refurbished product running like new.