2. 2
SN Panigrahi is a Versatile Practitioner, Strategist, Energetic Coach, Learning Enabler & Public Speaker.
He is a Business Consultant, International-Corporate Trainer, Mentor & Author
He has diverse experience of over 30 Yrs and expertise in Project
Management, Contract Management, Supply Chain Management,
Procurement, Strategic Sourcing, Global Sourcing, Logistics, Exports &
Imports, Indirect Taxes – GST etc.
He had done more than 200 Workshops Globally on above
Published more than 500 Articles; More than 90 Youtube Presentations &
90 SlideShares
He is an Engineer + MBA +PGD ISO 9000 / TQM with around 30 Yrs of Experience
He is a certified PMP® from PMI (USA) and become PMI India Champion in 2016
Authorized Training Partner (ATP) Instructor Issued by Project
Management Institute (USA)
Also a Certified Lean Six Sigma Black Belt from Exemplar Global & KPMG
Have been Trained in COD for 31/2 Yrs. on Strategy & Leadership
GST Certified – MSME – Tech. Dev. Centre (Govt of India)
ZED Consultant – Certified by QCI – MSME (Govt of India)
Member Board of Studies, IIMM
Co-Chairman, Indirect Tax Committee, FTAPCCI
Empanelled Faculty in NI MSME
He has shared his domain expertise in various forums as a speaker & presented a number of papers in various national and
international public forums and received a number of awards for his writings and contribution to business thoughts.
SN Panigrahi 9652571117
snpanigrahi1963@gmail.com
Hyderabad
3. 3
Re‐export is sending back goods imported for specific purposes like jobbing,
execution of a contract, servicing/repairing of machineries, display in
fair/exhibition etc. It also happens when indigenously manufactured goods were
returned back after export and re‐imported for repairing/reprocessing etc. due to
reasons such as defective, not meeting buyer’s requirement etc.
Re-Export of Goods may also happen when goods are Imported into India from a
Country and then after Exported to another Country. For example, Machines are
Imported from Germany into India and Exported to Nepal.
Goods can be kept in customs bonded warehouse and then re-exported
without payment of customs duty. Export of Warehoused Goods are subject to
some Conditions as per Section 69 of Custom Act, 1962.
5. Section 69 of Custom Act, 1962 read with Notification No.
46‐Cus dated 01.02.1963 allows goods imported and
warehoused but not cleared for home consumption allows
re‐export without payment of Customs Duty if—
(a) a shipping bill or a bill of export has been presented
in respect of such goods in the prescribed form;
(b) the export duty, penalties, rent, interest and other
charges payable in respect of such goods have been
paid; and
(c) an order for clearance of such goods for exportation
has been made by the proper officer.
6. Section 69 of Custom Act, 1962 further provides that if the
Central Government is of opinion that warehoused goods of
any specified description are likely to be smuggled back into
India, it may, by notification in the Official Gazette, direct
that such goods shall not be exported to any place
outside India without payment of duty or may be allowed
to be so exported subject to such restrictions and conditions
as may be specified in the notification.
Accordingly, the Government has directed vide Notification
No.45-Cus. dated 1.2.1963 (as amended) that warehoused
goods shall not be exported without payment of import
duty to any place in Bhutan or Nepal. Similar restrictions
are placed in the case of warehoused goods to be exported
by land to any place in Myanmar, Sikang, Tibet or Sinkiang.
7. However, the warehoused goods can be exported to Nepal
without payment of import duty in the following circumstances:
(a) If goods are exported against an irrevocable letter of
credit in freely convertible currency;
(b) If goods are exported for supplies to projects financed by any
UN Agency or IBRD Association or ADB or any other multilateral
agency of the like nature and for which payments are received in
freely convertible currency; and
(c) If the specified capital goods are supplied against a global
tender invited by HMG of Nepal for which payment is received in
Indian Rupees. These goods can be exported only from Jogbani
or Raxaul LCS on production of bank certifies of receipt of the
payment in freely convertible currency or Indian Rupees, as the
case may be.
8. 8
Main requirement under Section 69 of the Customs Act is to establish that
the goods being exported are warehoused goods.
This may require examination and verification of various parameters,
including but not limited to physical properties, weight, marks and
numbers, test reports, if any, documentary evidences vis-à-vis import
documents etc. for identification of the goods.
10. 10
“There is no restriction on invoicing of export contracts in Indian Rupees in terms of the Rules, Regulations,
Notifications and Directions framed under the Foreign Exchange Management Act, 1999”.
Regulation 3(1)(A)(ii) of the Foreign Exchange Management (Manner of Receipt and Payment)
Regulations, 2016 allows to receive payment for exports to Nepal & Bhutan in Indian rupees.
Further, in terms of Para 2.52 of the Foreign Trade Policy (2015-2020), all export contracts and invoices shall be
denominated either in freely convertible currency or Indian rupees but export proceeds shall be realized in freely convertible
currency. However, export proceeds against specific exports may also be realized in rupees, provided it is through a freely
convertible Vostro account of a non-resident bank situated in any country other than a member country of Asian Clearing
Union (ACU) or Nepal or Bhutan”
As per Section 2 (5) of IGST Act, 2017 Exports means “Taking Goods out of India to a place outside India”.
Here no further Conditions are attached regarding currency of Export Receipts.
CBEC Circular no. 88/07/2-019-GST dated February 1, 2019, clarifies that the acceptance of LUT for supplies
of goods or services to countries outside India will be permissible irrespective of whether the payments are
made in Indian currency or convertible foreign exchange, as long as they are in accordance with the
applicable RBI guidelines.
However, as discussed above please note that warehoused goods shall not be exported without payment of
import duty to any place in Bhutan or Nepal in case the payment is received in Indian Currency (except in
case of Supplies Against Global Tender .
12. 12
Export of goods to Nepal or Bhutan fulfils the condition of GST Law regarding
taking goods out of India. Hence, export of goods to Nepal or Bhutan will be
treated as Zero Rated and consequently will also qualify for all the benefits
available to zero rated supplies under the GST regime.
The Warehoused Goods can be exported either under bond or Letter of
Understanding (LUT) without payment of IGST, where the exporter can claim
refund of accumulated ITC on account of exports or with payment of IGST
which can be claimed as refund after the goods have been exported.
