Page 41 - ELT_15th July 2020_Vol 373_Part 2

2020 ] EXPORTS & IMPORTS UNDER FOREIGN TRADE POLICY A47

Export through courier service/post
Exports through a registered courier service is permitted as per notifica-
tion issued by DoR. However, exportability of such items shall be regulated in
accordance with FTP/ITC (HS), 2017.
Export of replacement goods
Goods or parts thereof on being exported and found defective/damaged
or otherwise unfit for use may be replaced free of charge by the exporter and
such goods shall be allowed for export by Customs authorities, provided that
replacement goods are not mentioned as restricted/SCOMET items for exports in
ITC (HS). If the export item is ‘restricted’/under SCOMET, the exporter shall re-
quire a export license for replacement.
Export of repaired goods
Goods or parts thereof, except restricted under ITC (HS), on being ex-
ported and found defective, damaged or otherwise unfit for use may be import-
ed for repair and subsequent re-export. Such goods shall be allowed clearance
without an Authorisation and in accordance with Customs notification. To that
extent the exporter shall return the benefits/incentive availed on the returned
goods. If the item is ‘restricted’ for import, the exporter shall require an import
license.
However, re-export of such defective parts/spares by the Compa-
nies/firms and Original Equipment Manufacturers shall not be mandatory if
they are imported exclusively for undertaking root cause analysis, testing and
evaluation purpose.
Export of spares
Warranty spares (whether indigenous or imported) of plant, equipment,
machinery, automobiles or any other goods [except those restricted under ITC
(HS)] may be exported along with main equipment or subsequently but within
contracted warranty period of such goods, subject to approval of RBI.
Re-export of imported goods found defective and unsuitable for use
Imported goods found defective after Customs clearance, or not found as
per specifications or requirements may be re-exported back as per Customs Act,
1962.
Private bonded warehouses for exports
(a) Private bonded warehouses exclusively for exports may be set up in
DTA as per terms and conditions of notifications issued by DoR.
(b) Such warehouses shall be entitled to procure goods from domestic
manufacturers without payment of duty. Supplies made by a do-
mestic supplier to such notified warehouses shall be treated as
physical exports provided payments are made in free foreign ex-
change.

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EXCISE LAW TIMES  15th July 2020  41