CBIC extends deadline for re-export of imported containers by three months
At present duty free import of containers is allowed with the condition of re-export during the next six months. However, keeping containers for more than six months comes under the purview of import and then import duty is levied.
To avoid such import duty, companies export empty containers. Such activities, however, are adding to the problem of shortage of containers for export.
In this series, the Central Board of Indirect Taxes and Customs (CBIC) on Saturday asked its field officers to give three more months for re-export of imported containers lying at domestic ports. The importers had also sought extension of the deadline.
Significantly, due to the Kovid-19 epidemic, there has been an increase in freight rates and a decrease in the number of containers globally.
The export community has repeatedly raised the issue of shortage of containers, as it affects exports.
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