Export through third party, Central Excise

[SANDESH SHINDE]

Dear Sir,

We are a mfg co, can our supplier send goods directly to our third party and that third party can export the goods on our ascertain price without payment of duty under excise on our behalf, if yes please kindly describe the procedure in brief and under which rule, please explain.thanks and regards.

Posts / Replies

[Naveed S]

Sir,

You may opt yourself as a Manufacturer Merchant Exporter under Nofn.42/2001 CE(NT). Your third party can procure goods without payment of duty from your supplier against CT-1, and then export the same from their (third party's) factory premise on your behalf, based on the said CT-1 issued by you.

[AAKASH KUMAR]

But respected sir, the CT-1 will be issued in the name of manufacturer exporter and only he can export the goods in his name. I have never seen such a provision. Please quote the relevant provision.

[Naveed S]

Sir,

A Manufacturer exporter can also export goods under noti. no. 42/2001 CE N.T. and can also get a CT-1 issued in the name of others for the purpose of export.

In this case, the manufacturer export shall execute a bond under the above said notification and get a CT-1 issued in the name of the third party. The supplier shall send the goods to the third party on their invoice. The third party shall then export the goods (received from the supplier on behalf of the exporter), based on the CT-1 received by him from the manufacturer exporter.