India has notified an exemption from customs duty and Integrated Goods and Services Tax (IGST) on animals imported into the country for participation in shows, exhibitions, contests, competitions, demonstrations and certain public functions under the India-UK Comprehensive Economic and Trade Agreement (CETA).

The notification, issued by the Central Board of Indirect Taxes and Customs (CBIC), will come into effect from July 15.

The exemption applies to animals imported for entertainment activities and the exercise of public functions, including police dogs, sniffer dogs and guide dogs. The duty waiver is subject to the condition that the animals are re-exported after the event or activity for which they are brought into India.

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Under the notification, importers will be required to submit a declaration stating that the animals are intended for display or use in a specified event at the time of filing the bill of entry.

Importers must also execute a bond equal to the value of the imported animals and furnish a bank guarantee or cash deposit equivalent to 110% of the customs duty that would otherwise have been payable. However, the requirement for a bank guarantee or cash deposit will not apply to imports made by the central government, state governments, Union Territory administrations, diplomatic missions in India or international organisations notified under the United Nations (Privileges and Immunities) Act, 1947.

The notification further stipulates that the imported animals cannot be removed from the venue of the event without the permission of customs authorities and must be capable of identification at the time of re-export.

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The animals must be re-exported within six months from the date of clearance by customs authorities. In the case of imports by governments, diplomatic missions and notified international organisations, the Commissioner of Customs may extend the re-export period by six months at a time, up to a maximum of two years.

The notification also allows the imported animals to be retained in India for domestic use before the expiry of the re-export period, subject to payment of the applicable customs duties and interest in accordance with the law.