Proof of Export by a Merchant Exporter, Central Excise

[Jatin Shah]

We have a CT-1 to export 3000 Kgs. of a chemical. Out of 3000 kgs., we exported 1000 kgs by Air and we have all documents to get a proof of export. The remaining 2000 kgs were shipped by Sea. The Customs department drew a sample and sent for Analysis. It has been more than a month and we have not received the Analysis Results yet.

The Customs department has not released ARE-1 and EP copy for the Shipment by Sea and it won't release till the analysis results are received. There is no time limit on how soon the results will be received.

Both Earlier shippment of 1000 Kgs. by Air and 2000 Kgs. by Sea have reached USA and cleared in US Customs.

The excise department wants ARE-1 and EP copy of both shipments since they are under the same CT-1.

(1) How can I get Proof of Export for Both Shipments?

(2) What happens if Analysis results are not received within Six Months? Do I have to pay Excise?

My queries are:

(1) How can I get proof of exports for both shipments even

Posts / Replies

[MANOHARAN ARUMUGAM]

Dear Mr.Jatin Shah,

Before replying to your queries, I want to raise the following questions.

1. For the goods exported have you received the payment in full?

2. Has the consignee accepted the goods which you had exported?

If yor answers for above questions are yes, then you need not wait for the outcome of the Analysis Results.  Since you have  statutory obligations to produce the proof of exports with the specified period,  you may approach Customs Authoities to expedite for proof of exports pending receipt of Analysis Report. 

You can execute an Indemnity Bond to Customs Authorities to get the POE pending receipt of Analysis Report.

Another alternative is to get extension of time from your jurisdictional excise authorities to submit the POE duly informing the reasons for delay in getting POE from Customs.

With Regards,

A.Manoharan