INDIA: Clarification Issued on Duty Exemption for Durable Containers

A clarification has been issued with regard to the conditions for claiming customs duty and integrated tax exemptions on durable containers temporarily imported (for a period of up to six months). Looking to precisely define the term ‘durable’, Circular No. 51/2020-Customs – as issued by the Central Board of Indirect Taxes and Customs (CBIC) – makes it clear that the term applies to any container for packaging or transporting goods that can be used more than once, including plastic/metal boxes, cases, cartons, and trays. According to the prevailing regulations, all such containers of a standard maritime dimension properly deployed in line with the import/re-export procedures detailed in Circular 31/ 2005 Cus will be duly eligible for the specified exemption.

Circular 51 also outlines the procedural requirements relating to durable containers not of a standard maritime dimension, but which are nevertheless used in the temporary import/eventual re-export process. Such shipments will be granted exemption from customs duties if the containers for re-export are declared as discrete items in the shipping bill of entry. They must also be verified at the time of export by Indian Customs and the importer needs to provide a bond and submit evidence to the Assistant Commissioner/Deputy Commissioner of customs clearly demonstrating that the duty in cases of non-compliance will be covered.