To address the problem of shortage of containers for exports, the tax department has decided to give three more months for the re-export of imported vessels lying at domestic ports, according to an official circular.
Currently, duty-free imports of containers are allowed with the condition of re-export in the next six months.
However, keeping containers beyond six months is considered as deemed import and thus import duty is levied, a policy aimed at ensuring faster turnaround of containers.
To avoid such import duties, shipping lines export empty containers to evade duty payment on containers which are lying empty. However, such practices are aggravating the problem of shortage of containers for exports.
The Central Board of Indirect Taxes and Customs (CBIC) on Saturday asked its field officers to give three months more time for the re-export of imported containers lying at domestic ports.