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CA Final · Indirect Tax Laws · Importation and Exportation of Goods

Ravi Gems Pvt Ltd exported jewellery in 2022 and the goods are now being brought back into India. The Central Government meanwhile issued a section 11 notification prohibiting import of that class of goods subject to conditions. Which statement is correct as per the Customs Act, 1962?

Re-imported goods are liable to duty and are subject to all conditions and restrictions applicable to goods of like kind and value on importation. Section 20 treats them like any other import, so the earlier export gives no exemption, and there is no two-year condition in the section.

  1. ARe-imported goods are exempt from duty and from conditions because they were originally exported from India
  2. BUnder section 20, re-imported goods are liable to duty and subject to all conditions and restrictions applicable to goods of like kind and value on importationCorrect
  3. CRe-imported goods are liable to duty only, and import conditions or restrictions do not apply to them
  4. DRe-imported goods are liable to duty only if re-imported within two years of exportation

Explanation

Section 20 states that goods imported after exportation are liable to duty and subject to all conditions and restrictions, if any, applicable to goods of like kind and value on importation. The earlier provisos and Explanations were omitted in 1995, so no two-year condition exists in the text, and conditions also apply.

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