DGFT clarifies no import restrictions on second-hand capital goods

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: recently purchased a second-hand plant from Germany and are facing problems with the customs. Our clearing agent tells us that in the recently announced exim policy, the government has banned import of second-hand capital goods. Our money is blocked and demurrage on the consignment is rising by the day. Whom should we approach in this regard?
—Sheth Brothers, Mumbai

The problem has arisen because in the recent Annual Supplement to the Foreign Trade Policy, “remanufactured goods” are placed in the “restricted list”. However, the meaning of remanufactured goods has not been defined. The customs authorities started insisting on licences for second-hand capital goods on the ground that they are remanufactured goods.

Therefore, many import consignments of second-hand capital goods got held up. The industry representative has represented the case before the Directorate General of Foreign Trade (DGFT). The DGFT has now clarified that the import restriction would be applicable only to re-manufactured goods, not to second-hand capital goods. The DGFT has also highlighted through a circular that second-hand capital goods are freely importable without a specific licence.

You may file a declaration to the customs that the capital goods imported are second-hand and do not fall under the category of re-manufactured capital goods.