As per Foreign Trade Policy, second hand capital goods are allowed to be imported without any licence. But second goods for personal use seems to be restricted. This view is not appears to be correct.
"......Provided that where it is established to the satisfaction of the Adjudicating Authority that any goods or materials which are liable to confiscation under this rule, had been imported for personal use, and not for any trade or industry, such goods or materials shall not be ordered to be confiscated........" Rule 17. Confiscation and redemption..FOREIGN TRADE (REGULATION) RULES, 1993 Ministry of Commerce Notification No. GSR 791 (E), dated 30-12-1993.
It is interpreted that if any goods is imported for personal use than it cannot be confiscated for violation of above Rule. There is no value limit for personal import without any licence.However, Department of Revenue/ Customs department ,at many place, does not allow goods imported for personal use. Reason cited is based on 3(1)(i) of Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993. This is not true.
Once Rule itself says that personal use goods are not to be confiscated ,then ,where is question of restricting import of consumer electronics goods ,valued more than C.I.F ,Rs 2000/= through Order. Hence, goods for personal use should be allowed without any adjudication , whether it is old or new. Revenue authority and DGFT to rectify and make importing goods for personal use as smooth affair.
Friday, November 26, 2010
