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K.R.Srivats

Import restriction would be applicable only to remanufactured goods

New Delhi , April 21

The Union Government has sorted out the logjam over the import of second-hand capital goods, in the wake of its recent move to place remanufactured goods in the restricted list for imports.

Trade and industry had recently represented to the Directorate General of Foreign Trade (DGFT) that customs authorities were insisting upon a specific licence for clearance of second-hand capital goods on the ground that remanufactured goods are restricted for import.

Informed sources said that the Government had, in the recent Annual Supplement to the Foreign Trade Policy, placed remanufactured goods in the restricted list. However, the meaning of remanufactured goods has not been defined.

With the customs authorities insisting upon licences for second-hand capital goods on the ground that they are remanufactured goods, the import consignments of many second-hand capital goods could not be cleared.

DGFT clarification

To sort out this problem, the DGFT has now clarified that the import restriction would be applicable only to remanufactured goods and not to second-hand capital goods. The DGFT has also highlighted through a circular that second-hand capital goods are freely importable without a specific licence.

To facilitate clearance of second-hand capital goods under free category, the DGFT has said that a declaration by the importer at the time of clearance that the capital goods imported are second-hand capital goods and do not fall under the category of remanufactured capital goods may be accepted by the customs authorities.

"The Government has come up with a pragmatic solution to resolve the problem without adding to the transaction cost," Mr Ajai Sahai, Director General, Federation of Indian Export Organisations (FIEO), told Business Line.

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