CONDITION OF EXPORT THROUGH CT-1, Central Excise

[RAM NAUDIYAL]

DEAR EXPERTS,

1. IS IT COMPULSORY CONDITION THAT EXPORT SHOULD BE CLEARED FROM MANUFACTUREING PREMISES THROUGH  CT-1.

2. CAN A MERCHANT EXPORTER BROUGHT THE GOODS FROM MANUFACTURER IN OWN PREMISES THROUGH  CT-1  AND STUFFING THE CONTAINOR.

PL QUATE ANY NOTIFICATION OR RULE AND ALSO CLERIFY SR. NO. 4 OF CIRCULAR NO. 952/13/2011-CX

THANKS

Posts / Replies

[DEEPAK SHARMA]

A merchant exporter can procure excisable goods from various manufacturing unit on independent CT-1, they can gather all excisable goods from various manufacturer at their warehouse for the purpose of export the full container. and than invite jurisdictional officer to stuff the container.

[Pradeep Khatri]

Mr. Deepak Sharma has provided a appropriate reply to your query.

[RAM NAUDIYAL]

What  is independent CT-1 and procedure to clear the exciasable goods from Merchant warehouse.

[Pradeep Khatri]

The Merchant exporter is required to execute a bond in Form B-1,so that goods can be cleared by thE supplier manufacturer to Mertchant exporter without payment of duty.  Merchant Exporter registered with recognised EPC and Star Export House do not have to furnish any security/surity while executing bond, unless they have come to the adverse notice of department - CBE&C circular No. 613/4/2001-CX dated 31-01-2002, confirmed in CBE&C circular No 711/27/2003-CX dated 30-04-2003.  If bond is executed by Merchant Exporter, he will obtain certificates in form CT-1 from Superintendent of Central Excise on the basis of proforma Invoice provided by the supplier manufacturer to merchant exporter.

The exporter shall ensure taht debit in bond does not exceed the credit available in the bond any time.  Forms of bond, letter of undertaking and CT-1 certificate have been given in Notification No 42/2001-CE(NT).  If export is through merchant exporter ARE-1 form should be signed both by Merchant Exporter and as well as manufacturer exporter.

If goods are exported under bond of merchant exporter only he will be liable for action.  Duty cannot be demanded from the supplier manufacturer. Control over bond is exercise by the authority before whom the bond is executed and all proof of export have to be submitted to that authority

The bond can be executed with any one of the following:-

1. Maritime Commissioners
2. Asstt./Dy. Commissioner under whose jurisdiction the factory is situated
3. Asstt./Dy. Commissioner (Export) as officer authorised by Board.

 The ARE-1 should clearly indicate  the full postal address of authority before whom the bond is executed, so that documents are submitted/transmitted to him for proof of export.

Procedure of CT-1 certificate:- After execution of bond, merchant exporter has to obtain CT-1 certificate from excise office.  The merchant exporter can obtain CT-1 form in lot of 25.  Part I of the form is certified by the Range Superintendent of Central Excise regarding bond executed.  The merchant exporter shall send CT-1 form to the manufacturer  from whom goods are to be produced for export without payment of  excise duty.  Before sending CT-1, the Merchant Exporter should debit estimate amount of duty liability against the Bond. This amount is required to be specified in part II of the CT-1 form. On the basis of this CT-1, the manufacturer can clear goods for export without payment of duty by making suitable entries in part II of CT-1.  This provisional debit will be covered into actual debit after the goods are cleared from the place of manufacturer.  Chapter 7 part II para 6.2 and 6.2.1 of CBE&C Manual, 2005.

[RAM NAUDIYAL]

Sir,

Should Export sale compulsary  from Manufacturer Premises against CT-1 as per rule. We are doing follow this procedure at now. No permission is granted to Manufacturer by Custom Department for stuffing the containor. That 's why we want to take the goods in our premises for stuffing the containor. Can we do it against CT-1? Will it not be violation of CT-1 rule. Pl advice and clerify procedure.

If we take the goods to our premises then who will sign the ARE-1? and who will issue invoice for ARE1?