Circular No.: ES/378/2020-21 21st November, 2020
To: Members of the Council
Sub: Clarifications regarding availment of exemption on temporary import of durable Containers
CBIC has issued Circular No.51/2020-Customs dated 20th November, 2020 clarifying about availment of exemption on temporary import of durable Containers.
A representation has been received by the Board regarding eligibility of the exemption available under No.104/94-Customs dated 16th March, 1994 for durable containers which do not conform to the standard marine container dimensions, but which are intended for temporary import and eventual re-export. Also, there is a perceived ambiguity about procedural and system readiness regarding import and reexport of such durable containers, which are not explicitly covered by the guidelines as provided under Circular No.31/2005-Customs dated 25th July, 2005.
With regard to the eligibility of the duty exemption, reference is invited to Board Circulars No.69/2002-Customs dated 25th October, 2002 and No.73/2002-Customs, dated 7th November, 2002. These said circulars clarify that “As per the meanings assigned to the words `durable` and `container` in various dictionaries, it would appear that any goods (containers) used for packaging or transporting other goods, and capable of being used several times, would fall in the category of `containers of durable nature". Further, `durable containers` covers within its ambit “any type of reusable packaging containers such as cases, boxes, cartons, trays, etc., made up of metals or plastics”. Thus, it is hereby reiterated that containers that satisfy the following conditions are eligible for the said duty exemption:
that are durable
capable of being re-used multiple times
capable of being identified at the time of re-export viz. a viz. imported containers,
satisfy all the other stipulated conditions in the notification.
The procedure to be followed for import and re-export of marine containers would continue to be governed by guidelines provided in Circular No. 31/2005-Customs dated 25th July, 2005.
For durable containers which do not conform to the standard marine container dimensions, but which are intended for temporary import and eventual re-export, the procedure to be is followed is given in Circular No.51/2020-Customs dated 20th November, 2020.
Members are requested to kindly make a note of the above.