EXCISE PROCEDURE FOR SALE TO MERCHANT EXPORTER, Central Excise

[ANAND SHEMBEKAR]

 I would like to know the procedure to be followed by the Central Excise Assessee for

 clearances of dutiable goods to merchant exporter or another Central Excise assessee 

 within India  without payment of Central Excise duty. For e.g. ' A ' is factory located at Pune

 and 'B' is customer located at Mumbai . 'B' Place an order on 'A' to sale goods to him without

 charging  excise duty because 'A' is exporting the same goods to overseas buyer.

 

Posts / Replies

[Mangesh Lokre]

 

1. The merchant exporter have to execute the general bond with the Jurisdictional AC/DC and issue the CT-1 Certificate In the name of the manufacturer exporter

2. The merchant exporter has to send the ARE-1 duly signed by him addressing to the Manufactuere Exporter's Jurisdictional AC.

3. After receipt of the CT-1 and the ARE-1, the manufacturer exproter can clear the goods without payment of duty by quoting the CT-1 reference No on Excise Invoice and ARE-1 counter signed by by the Manufacturer Exporter.

4. The ARE-1 distribution is as follows

         Original + duplicate +Extra                       Along with the shipment

         Triplicate + Quadriplicate                         To the Manufacturer's Jurisdictional Excise Office

5. The Triplicate Copy signed by the excise officer, needs to forward to the Bond Executing authority of the merchant exporter

6. AFter Export, you may call the Self Certified Copies of Proof of Export for Manufacturer Exporters Record.

 

 

 

[Ramaiah Swamy]

dear anand,

 

I agree with the views expressed by mr. mahesh.

 

To add to those views :

 

You have to convince the merchant exporter to :

 

1. Obtain RCMC from jurisdictional EPC to get exemption from BG guarantee requirement

2.  Execute bond with the ACCE - Bonds at  hqrs office designated for the purpose

3. Thereafter obtain CT - 1 certificate

4.  Merchant exporter is also required to  submit periodical statement of exports

5.  You may also look at chapter 7 of CBEC manual of supplementary instructions

 

With best wishes,

 

Rangaswamy