A very significant Customs AAR ruling

A very significant Customs AAR ruling delivered recently observed the following:

📌 Duty Drawback Eligibility
Questions related to duty drawback are not eligible for Advance Ruling. This means that any queries regarding the refund of duties paid on imported goods that are subsequently exported or used in manufacturing exported goods cannot be addressed through the Advance Ruling mechanism.

📌 Advance Authorization
Goods can be imported into a bonded premise without paying customs duty under Advance Authorization, as per Notification No. 21/2023-Customs dated 1st April 2023. These goods will not be considered warehoused under section 60 of the Customs Act, provided the conditions stipulated in the notification and the current Foreign Trade Policy are met.

📌 EPCG License and MOOWR Scheme
Capital goods that have benefited from customs duty deferral under the MOOWR scheme cannot be de-bonded using an EPCG license, as per Notification No. 26/2023-Customs dated 1st April 2023. This ruling clarifies that once the deferral benefits are claimed, the goods cannot be transferred to another scheme for further duty benefits.

📌 DTA Sales vs. Exports
The supply of manufactured goods to a third-party customer is considered exports if the customer exports the goods outside India and they are directly delivered to the port of export. This distinction is crucial for businesses to understand their obligations and benefits under different export scenarios.

🧷2024-VIL-18-AAR-CU