Regarding-Export & Registration, Central Excise

[sumeet tholle]

Dear Sir,

ABC, who is registered with excise dept, received an export order for supply as well as erection of machinery from England.

ABC appointed PQR as subcontractor for supply as well as erection work. PQR not registered with Excise dept.

PQR again appointed XYZ ,who is registered with Excise dept to supply machiney and PQR will do erection work.

Being export, no body wants to pay excise duty.

Is Central Excise registration of PQR required ?

Pl. Guide about procedure also.

Thanks.

Sumeet Tholle

Posts / Replies

[Rajagopalan Ranganathan]

Dear Sumeet,

PQR will be treated as mechant exporter and he nedd not be rigstered with Central Excise Department. Th procedure to be followed by PQR is detailed in para 3.8, 3.9 and 3.10 of Chapter 7 of CBEC's Manual of Supplementary Instructions which states that -

"the merchant-exporters are necessarily required to furnish bond in the B-i Form specified in Annexure-16 to notification no. 42 /2001-Central Excise (N.T.), (See Part 7) supra with such security or surety as may be specified by the concerned bond accepting authority. Specified categories/merchant exporters namely status holders (Super Star Trading House, S Trading House, Trading House, Export House) and exporters registered with recognized Export Promotion Councils would be exempted from furnishing security and/or surety with the bond executed by them for export of goods without payment of duty unless they have come to the adverse notice of the Department. The bond shall be in a sum equal at least to the duty chargeable on the goods for the due arrival of export goods at the place of export and their export there from under Customs or as the case may be postal supervision. The officer, who will accept the bond, will also be responsible for discharging that bond upon furnishing proof of export by the exporter.

3.9 The bond shall not be discharged unless the goods are duly exported, to the satisfaction of the Deputy/Assistant Commissioner of Central Excise or Maritime Commissioner or such other officer as may be authorized by Board on this behalf within the time allowed for such export or are otherwise accounted for to the satisfaction of such officer, or until the full duty due upon any deficiency of goods, not accounted so, and interest, if any, has been paid

"Maritime Commissioner" would mean the Commissioner of Central Excise under whose jurisdiction one or more of the Port, Airport, Land Customs station or post office of exportation is located.

3.10. Certificate 'CT-i', as specified in Annexure-17 (See Part 7) have to be obtained by merchant-exporters for procuring goods from a factory or warehouse. Such certificates need not be obtained for each consignment but will be given in lot of 25. Manufacturer exporter need not obtain such certificate for the purpose of export."

You can follow the above procedure.

[sumeet tholle]

Dear Sir,

Thanks for your reply.

But I am confused. Is PQR is merchant exporter or ABC is merchant exporter ?

Thanks.

Sumeet

[Rajagopalan Ranganathan]

Dear Sumeet,

You have stated that ABC appointed PQR as sub-contractor for supply as well as erection work. As far as Central Excise law is concerned the person who actually executes the work or manufacturing activity he is the executor /manufacturer. Therefore PQR, though not registered with the Excise Department and he will be treated as merchant exporter. Merchant exporter need not be a registered person for exporting the goods.