The Hindu Business Line : Nod for re-export of defective goods under SFIS

The Finance Ministry has allowed goods imported under the Served from India Scheme (SFIS) and found to be defective or unfit for use to be re-exported so long as certain conditions of the revenue department are met.

A similar dispensation would be available for goods imported under the Vishesh Krishi and Gram Udyog Yojana (VKGUY) and found to be defective or unfit for use. This move is expected to benefit hotels, travel and tourism and ports sectors, which make use of the Served from India scheme. Under this scheme, individual service providers who earn foreign exchange of at least Rs 5 lakh and other service providers who earn forex of at least Rs 10 lakh are eligible for a duty credit entitlement of 10 per cent of the forex earned by them.

The revenue department has now spelt out four conditions for allowing re-export of defective items imported under the SFIS/VKGUY. It has stipulated that the re-export of the goods should take place from the same port where the goods were imported. Moreover, the goods should be re-exported within six months from the date of import.

Also, the deputy commissioner/assistant commissioner of customs should be satisfied about the identity of goods and the goods should not be put into use after imports.

On re-export of goods, 98 per cent of the credit amount debited in the SFIS/VKGUY scrip would be generated by the customs house concerned in the form of a certificate. Based on this certificate issued by the customs, the regional authority concerned would issue fresh SFIS/VKGUY scrip for 98 per cent of the credit amount for the same port of registration.

The validity of the SFIS/VKGUY scrip so issued would be for a period equivalent to the balance period available in the earlier SFIS/VKGUY scrip on the date of import of such defective goods.

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