The Central Board of Indirect Taxes and Customs (CBIC) has clarified that the exemption from the customs duty in respect of before and after the implementation of GST is available to the re-import of goods through post.
A circular issued by the Board recently addressed the issues relating to the applicability of notification No. 45/17-Cus, and 46/2017-Cus, both dated 30th June 2017 to the reimports of goods which were earlier exported through Post.
The said notifications exempt customs duty on reimport of goods that are exported from India to the extent as specified therein. Of this, notification No. 45/17-Cus applies to the goods exported on or after 1.7.17 and No. 46/17-Cus applies to the goods exported before 1.7.2017.
“It appears that the doubt has arisen on account of para 2 of these notifications which has been interpreted in certain cases to the effect that on interpreting that these notifications apply only to the re-imports of goods that were exported upon clearance for exports under section 51 of the Customs Act, 1962. The manner of exports of goods through post parcel is regulated under section 82, 83 & 84 of the Customs Act, 1962), and section 51 does not apply to the exports made through post parcels,” the Board said.
The circular pointed out that “the harmonious reading of these two notifications make it clear that the intention of the said paras 2 of respective notification is only to prescribe that one notification applied to the exports made before 1.7.2017 (46/17-Cus) and the other applied to the exports made on or after 1.7.2017 (45/17-Cus). In other words, these are cutoff date for applicability of said notifications. In all other respect, the concessions available under notification No. 94/96-Cus (in the pre-GST period) have been continued through these notifications. It may be seen that the reference to section 51 of the Act in the notification does not seek to deny the benefit to the goods to which section 51 may not apply. By implication, if section 51 does not apply to certain goods the para 2 may not apply. However, even in these cases the application of notifications does not pose any challenge as the intended nature of duty/tax concession is clearly stated in the opening para of these notifications e.g. 45/2017-Cus provides exemption from duties as applicable after introduction of GST.”
It was therefore, clarified that the notification No. 45/17-Cus, and 46/2017-Cus, both dated 30th June 2017 are also applicable to the re-imports of goods which were earlier exported through Post.
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