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When the raw materials or capital goods are imported, the import duty on them is deferred. If these imported inputs are utilised for exports , the deferred duty is exempted. Only when the finished goods are cleared to the domestic market, import duty is to be paid on the imported raw materials used in the production. Import duty on capital goods is to be paid if and when the capital goods are cleared to the domestic market. If these imported inputs are utilised for exports, the deferred duty is exempted.
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