MERCHANT EXPORT PROCEDURE, Customs - Exim - SEZ

[P.V. MANIKANTAN]

Dear Sir

We are the manufacturer of drilling machines and received an Order for Merchant Export

We would like to know the procedures to be followed for Merchant Export

1) What are the documents involved in Merchant Export ?

2) Our India Customer wants the product at very economical rate with nil duties and taxes ? Is it possible to use Advance license for importing goods ? Is there any difference in advance license authorization procedures for Merchant exports ?

3) for Nil CVD and NIL taxes , what are the excise documents to be submitted ? Which documents to be submitted by the Merchant exporter ( our India Customer ) to us ? What are the documents to be submitted by us to the Merchant exporter  ?

Kindly provide a detailed procedure for Merchant Export

Since we have to complete the export before this month end, Kindly provide details at the earliest

P.V.MANIKANTAN

Posts / Replies

[MUKUND THAKKAR]

Dear ,

please go thru the following.

1) What are the documents involved in Merchant Export ?

first  your  merchant export  apply to  your  division office  for  factory stuffing  NOC , if  goods move  thru containers.

if  goods are not moving  thru container  than  your merchant exporter  issue  CT-1 for excise duty exemption.along  with ARE-1 duly signed  by your  merchant exporter.

first  decided  on which way you  are exporting ?

2) Our India Customer wants the product at very economical rate with nil duties and taxes ? Is it possible to use Advance license for importing goods ? Is there any difference in advance license authorization procedures for Merchant exports ?

you can eligible  to  get  the advance authorization  in  case  of   Third party export, but  insure that  as and when  export  thru merchant exporter , claim your licence  number on ARE-1 + shipping bills.

3) for Nil CVD and NIL taxes , what are the excise documents to be submitted ? Which documents to be submitted by the Merchant exporter ( our India Customer ) to us ? What are the documents to be submitted by us to the Merchant exporter  ?

once  you apply for advance Authorization   only  purchase order from your merchant exporter  is  req. rest of your  application and  your relevant  document is require for getting advance authorization. once you get  Advance  authorization  during  the time of  import  CVD will be NIl, so far is  excise concern you get the  CT-1 for excise exemption , and  Taxes  H form will be  provided  by your merchant exporter.

Mukund Thakkar

[Pradeep Khatri]

Good and very well explained reply.

Keep it up and keep replying.

[P.V. MANIKANTAN]

Dear Sir

Thanks for your immediate reply !

We want to clarify more on the below. Kindly provide your valuable suggestions in this regard

1) At what stage , each and every of these documents to be provided ? Who will provide these documents to whom ? Whom do we submit these documents finally ?

• Advance License
• CT-I
• ARE-1
• H-form

2) If factory stuffing, whether CT-I & ARE-1 is not required ?

3) While applying for Advance License, shall we have to inform the authority that it is for third party export ?

4) What do you meant by " which way you are exporting " ? Is it the mode of transport ?

NOTE : Whether Government has announced that advance license scheme will be expired from this finance year onwards ? Is there any other scheme available equivalent to Advance license scheme ?

With warm regards,
P.V.Manikantan
 

[MUKUND THAKKAR]

Good and very well explained reply.

Keep it up and keep replying.

Thanx for appreciation.

Mukund Thakkar 
 

[P.V. MANIKANTAN]

Dear Mr.Mukund

Thanks for your immediate reply !

We want to clarify more on the below. Kindly provide your valuable suggestions in this regard

1) At what stage , each and every of these documents to be provided ? Who will provide these documents to whom ? Whom do we submit these documents finally ?

• Advance License
• CT-I
• ARE-1
• H-form

2) If factory stuffing, whether CT-I & ARE-1 is not required ?

3) While applying for Advance License, shall we have to inform the authority that it is for third party export ?

4) What do you meant by " which way you are exporting " ? Is it the mode of transport ?

NOTE : Whether Government has announced that advance license scheme will be expired from this finance year onwards ? Is there any other scheme available equivalent to Advance license scheme ?

With warm regards,
P.V.Manikantan
 

[MUKUND THAKKAR]

1) At what stage , each and every of these documents to be provided ? Who will provide these documents to whom ? Whom do we submit these documents finally ?

• Advance License---->  Get it  from DGFT office if  you are not aware how to get it please hire consultant
• CT-I ---->  same will furnished by your Merchant exporter.
• ARE-1------> same will furnished by your merchant exporter with his signature
• H-form---->  after export given by your merchant exporter.

2) If factory stuffing, whether CT-I & ARE-1 is not required ?

in case of  factory stuffing  or not  both the documents is mandatory  in case of  export thru merchant exporter.

3) While applying for Advance License, shall we have to inform the authority that it is for third party export ?

same will be guide  your consultant.

4) What do you meant by " which way you are exporting " ? Is it the mode of transport ?

Thru containers  or  upto   CFS  or  LCL cargo.

NOTE : Whether Government has announced that advance license scheme will be expired from this finance year onwards ? Is there any other scheme available equivalent to Advance license scheme ?

 UP TO DECLARED NEW POLICY . PLEASE FOLLOW THE POLICY 2009-2014.  PLEASE REFER PUBLIC NOTICE NO. 51(RE:2013) 2009-2014  DT 19/02/2014.

Mukund Thakkar

[Naveed S]

 While applying for Advance License, shall we have to inform the authority that it is for third party export ?

It is not mandatory to inform as to whether advance license is to be used for direct or third party export, as both such exports are counted towards fulfillment of export.obligation. However, it is to be ensured that your Advance License No. and Date are clearly and specifically mentioned on your Invoice/Packing List as well as on copies of ARE - 1.