CBIC clarifies on applicability of Notification regarding re-import of goods on goods which were exported earlier for exhibition purpose/consignment basis

Jul 26, 2019 | by Avantis RegTech Legal Research Team


The Central Board of Indirect Taxes and Customs (CBIC) on July24, 2019, has clarified the issue of applicability of Notification no. 45/2017-Customs dated June 30, 2017, on the re-import of goods which had been earlier exported either for participation in exhibition or on consignment basis.

Situation mentioned at Sl. No. 1(d) of the Notification no. 45/2017-Customs require payment at the time of re-import of integrated tax not paid initially at the time of export, for availing exemption under the said notification. As in the case of re-import of specified goods, no integrated tax was required to be paid for specified goods at the time of taking these out of India, the activity being not a supply as per the provisions of Section 7 of the Central Goods and Services Tax Act, 2017, hence it is clarified that such re-import cannot be taken to be falling under situation at Sl. No. 1(d) of the Notification. Such cases will fall more appropriately under residuary entry at Sl. No. 5 of the said Notification even though those specified goods were exported under LUT, in view of the fact that the activity of sending / taking specified goods out of India is neither a supply nor a zero rated supply as per the provisions contained in Section 16 of the Integrated Goods and Service Tax Act, 2017.

Further it is clarified that, even in cases where exports have been made to related or distinct persons or to principals or agents, as the case may be, for participation in exhibition or on consignment basis, but, such goods exported are returned after participation in exhibition or the goods are returned by such consignees without approval or acceptance, as the case may be, the basic requirement of ‘supply’ as defined cannot be said to be met as there has been no acceptance of the goods by the consignees. Hence, re import of such goods after return from such exhibition or from such consignees will be covered by entry at Serial no. 5 of the Notification No. 45/2017, provided re-import happens before six months from the date of delivery challan.

The above clarification shall apply to all pending matters involving similarly placed exporters and importers, as the case may be.

[Circular No. 21/2019 –Customs]


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