Maximize Your Incentives – Minimize Your Effort

Businesses can import raw materials and machinery duty-free, manufacture products, and export them. Customs duties are only applicable on the finished products if they are sold domestically.

Entities engaged in production processes utilizing imported materials and capital goods are eligible to benefit. This scheme is particularly advantageous for businesses with predominantly local sales that rely on imported machinery for their manufacturing processes. It stands as the sole available scheme for such businesses.

The primary advantage is cost savings. By deferring customs duties until the final product is sold, companies can enhance cash flow management. This increased cash flow enables them to maintain surplus inventory, negotiate more effectively with suppliers, and save on interest payments for borrowed funds, among other benefits.

The eligible import duties for exemption or deferral include Basic Customs Duty, Integrated Goods and Services Tax, Social Welfare Surcharge, GST Compensation CESS, and Anti-Dumping Duty.

No, there is no export obligation mandated under the scheme. It is a duty deferral benefit rather than a blanket exemption, so no export obligation is prescribed.