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JOB WORK AND REIMPORT

JOB WORK AND REIMPORT

JOB WORK AND REIMPORT

Each client has her own requirement.  Requirements are not just vanilla type customs clearance alone.  Some times, they go beyond all these regulatory compliance but also cost reduction or cost management of transport.  The solution, some times calls for imaginative use of available resources so that the three objectives of cost management, regulatory compliance and on time delivery are also met.

 

One of our clients is multinational but belonging of medium category in terms of investment.  They have certain technical capability in their manufacturing facility in India.  In particular order they undertook, a no of processes were involved.  The processed components had to be sent to Thailand for an operation that requires precision machining and special treatment.  Such precision and machining and treatment are not available in India. In the sequence of operations to be done on the component, some of them are to be done in house in India, then sent to Thailand and rest of them are to be done back in their India facility.  So, in this case, the solution had to be firstly, ensure customs regulatory requirements are met, secondly, a freight forwarder has to be fixed who will undertake to carry the goods to Thailand, door deliver the goods to the vendor at Thailand and not only that once the operation is over had to collect the material and arrange for shipment back to Chennai, India and finally all these export and re import are to be done in a time bound manner.  Of course, needless to say, cost of transport both ways has to be competitive.

Once, such a request came from the client, our research at consultancy wing swung in to motion.  They perused the relevant notification on the issue and advised how to proceed.  The key thing here is that identity of cargo with respect to documents had to be established beyond doubt to the customs.  Our documentation has to take care of this aspect. Any hitch in the identity would make the client to pay duty at the time of getting back the components after the job work abroad.  That is the sensitive nature of the transaction.  The key thing here is the documentation.  Notification 45/2017 provide for such repair and return transactions.

Next, a right freight forwarder has to be found.  He has to be economical, strong in customs clearance at Thailand and believe in service ethics. Once regulatory requirements are met, the freight forwarder was chosen from among the network of forwarders.

Now it is a smooth, seamless operation that goes on without any hitch.

 

– R.R. PADMANABHAN

PRINCIPAL CONSULTANT, EXIM CONSULTANTS

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