Rule 7. Re-export or clearance of unutilised or defective goods

Official text

Rule7. Re-export or clearance of unutilised or defective goods. —

(1)The importer who has availed benefit of an exemption notification, prescribingobservance of these rules may re-export the unutilised or defective importedgoods, within six months from the date of import, with the permission of thejurisdictional Deputy Commissioner of Customs or, as the case may be, AssistantCommissioner of Customs having jurisdiction over the premises where theimported goods shall be put to use for manufacture of goods or for renderingoutput service:

Provided that the value of such goods for re-export shall not be less than the value ofthe said goods at the time of import.

(2)The importer who has availed benefit of an exemption notification, prescribingobservance of these rules may also clear the unutilised or defective importedgoods, with the permission of the jurisdictional Deputy Commissioner of Customsor, as the case may be, Assistant Commissioner of Customs having jurisdictionover the premises where the imported goods shall be put to use for manufactureof goods or for rendering output service, within a period of six months fromthe date of import on payment of import duty equal to the difference betweenthe duty leviable on such goods but for the exemption availed and that alreadypaid, if any, at the time of importation, along with interest, at the ratefixed by notification issued under section 28AA of the Act, for the periodstarting from the date of importation of the goods on which the exemption wasavailed and ending with the date of actual payment of the entire amount of thedifference of duty that he is liable to pay.

(3)The importer, with the permission of the jurisdictional Deputy Commissioner ofCustoms or, as the case may be, Assistant Commissioner of Customs havingjurisdiction over the premises where the imported goods shall be put to use formanufacture of goods or for rendering output service, may clear the importedcapital goods, after having been used for the specified purpose, on payment ofduty equal to the difference between the duty leviable on such goods but forthe exemption availed and that already paid, if any, at the time ofimportation, along with interest, at the rate fixed by the notification issuedunder section 28AA of the Act, on the depreciated value allowed in straightline method, as specified below, namely:-

(i) for every quarter in the first year@ 4%;

(ii)for every quarter in the second year @ 3%;

(iii)for every quarter in the third year @ 3%;

(iv)for every quarter in the fourth and fifth year@ 2.5%;

(v)and thereafter for every quarter@ 2%.

Explanation. —

(1) For the purpose of computing rate of depreciation for any part of aquarter, a full quarter shall be taken into account.

(2)There shall be no upper limit for such depreciation.

(3)The depreciation shall be allowed from the date when the imported capital goodshave come into use for the purpose as specified in the exemption notification upto the date of its clearance.