Goods Imported Duty Free Under Advance Authorisation Can Be Sent To A Job-Worker

We have imported our inputs duty free under advance authorisation. Can we send such imported inputs to a job-worker for carrying out part of the process of manufacture of the finished goods that we want to export? Do we need any permission for that?

As per Para 4.1.5 of the Foreign Trade Policy, goods imported under advance authorisation are subject to Actual User Condition. As per Para 9.5 of the Policy, "Actual User (Industrial) means a person who utilises imported goods for manufacturing in his own industrial unit or manufacturing for his own use in another unit including a jobbing unit." Therefore, you may send the goods imported duty free under advance authorisation to a job-worker. You do not need any permission but you must follow the procedure for job-work laid down under the relevant Central Excise notification (e.g. 214/86). It is desirable that you get the name of the job-worker as supporting manufacturer in your advance authorisation.



We want to know whether we can consider design and development of samples for exports as services incidental to manufacturing and claim the benefits of Served from India Scheme (SFIS).

The entry 'Services Incidental to Manufacturing' appears under the heading 'Other Business Services' in the list of services eligible for SFIS benefits at D(f) of Appendix-41 of the Handbook of Procedures Vol.1. However, in your case, it appears that you want to export samples and not the services incidental to manufacturing. You can try to make out a case that design and development services should be treated on a par with Research and Development services, if the billing is done for design and development charges and the results of your design and development services are sent to buyers of such services by way of samples. It is for the Director General of Foreign Trade (DGFT) to consider such a representation and take a call on whether to grant SFIS for such services.



We have imported certain capital goods under an Export Promotion Capital Goods (EPCG) licence but have not been able to install the same within six months. Can we get extension in time limit and, if so, from whom should we get the extension?

Condition no. 10 of the Customs exemption notification no. 22/2013-Cus dated 18.04.2013 does contain a provision for production of installation certificate within six months from the date of completion of imports, or such extended period as the Deputy/Assistant Commissioner of Customs may allow. Similar provisions are also there in other Customs notifications relating to imports under EPCG authorisation/licence. So, you may approach the concerned authority at the port of importation and obtain necessary extension. The Foreign Trade Policy, however, contains no such provision for extension. So, you may approach the Policy Relaxation Committee at the office of DGFT Headquarters with the necessary request, giving reasons for the delay. The EPCG committee has condoned the delay in installation in several cases.

Source:- business-standard.com