SITUATION

An Automobile OEM in India wanted to export some Indian-manufactured prototype cars to their counterparts in Europe, where they would be further testing and replacing the car engines with new European engines. After finishing testing in Europe, these cars would be re-imported into India for further testing of the new engines fitted in Europe. Both export and re-import movements would be by Air.

COMPLICATION

At the point of re-import, the cars should not be considered as second-hand cars and held in Customs for violation of conditions laid down in Import Licensing Notes of Chapter 87.

BUSINESS SOLUTION

Nagarkot led discussions with various client stakeholders and provided end-to-end guidance to prepare 100% accurate documentation in time and in line with the import licensing notes for both export and re-import. 

BUSINESS BENEFITS

Smooth export clearance

Smooth and speedy re-import Customs clearance. Delivery of re-imported cars happened in < 2 working days

Client incurred ‘ZERO’ Demurrage Charges even though this was re-import shipment which usually takes time as there is 100% Cargo examination and / or if there is a challenge in documentation. ZERO demurrage charges were possible due to correct knowledge, smart planning, timely documentation and timely information to all stakeholders.

Now, client’s confidence has increased and they are enjoying the supply chain flexibility and comfort of planning such transactions in future too.