We are manufacturer of packing material. We got an order from USA and on his instructions we send the packing material to a person who manufactures handicraft.Handicraft manufacturer export the handicraft in our packing boxes. In his Bill of entry he only mentions his goods ie handicrafts As a proof of export we have only Form-H which is issued by handicraft manufacturer and receipt in US dollar.. 1.Since Handicraft is not excisable goods and manufacturer is not registered with excise department. So, we can not charge and recover excise duty. 2. Handicraft exporter is not purchasing goods from us. we got the order from US and send the cartoons to Handicraft manufacturer on his (US) instructions, where handicraft manufacturer packed the goods in our cartoons and sent the goods to US. Since Handicraft manufacturer does not purchase goods from us, so he does not mention anything about cartoons in bill of entry Problem: Our cartoons are actually been exported but we are not getting any benefits of same, since we do not have any proof of export. Kindly suggest how can we get the credit of excise duty paid on manufacture of packing material and other export benfits
26 February 2014
Rule 19(2) provides that inputs to be used for manufacture of final product to be exported can be obtained without payment of excise duty. you should consult with any professional.
But the thing is this that we do not have any proof that our goods is actually been exported.
for sending goods from noida to moradabad factory we have to mention moradabad address in bill instead of USA client.
How we will satisfy the supplier of input that input used for manufacture of final product will be exported. since Clearing house agent is not accepting our GR nor he is accepting 2 bill of entries for one shippment (handicraft in cartoons)
24 July 2024
It appears there are several challenges related to proving the export of your packing material when it is used by another manufacturer to export their handicrafts. Here are some insights and suggestions on how to potentially address these issues:
### Proof of Export for Packing Material
1. **Form-H Issued by Handicraft Manufacturer**: - Since the handicraft manufacturer is using your packing material and exporting the goods, they issue Form-H as proof of export. This document can serve as evidence that your packing material was indeed used for export purposes.
2. **Receipt in US Dollars**: - The receipt in US dollars from the handicraft manufacturer also acts as evidence of the transaction and can support your claim that your packing material was exported.
3. **Export Declaration by Handicraft Manufacturer**: - While the handicraft manufacturer may not explicitly mention your packing material in their Bill of Entry, you can request them to provide a declaration or a letter stating that your packing material was used for packaging the exported goods. This can be used to substantiate your claim.
### Excise Duty Credit and Export Benefits
1. **Excise Duty Credit**: - To claim excise duty credit on the packing material that is exported indirectly through the handicrafts, you typically need to provide evidence of export. Form-H and the receipt in US dollars can be submitted to the excise authorities to claim this credit. Ensure you maintain proper records and documentation.
2. **Export Incentives and Benefits**: - Explore if there are any export incentives or benefits available for the packing material industry under GST or other export promotion schemes. These benefits may include duty drawback, GST refunds, or incentives under schemes like MEIS (Merchandise Exports from India Scheme).
### Addressing Clearing House Agent Issues
1. **Documentation for Shipping**: - If your clearing house agent is not accepting the Goods Receipt (GR) or multiple Bill of Entries (BoEs), you may need to clarify the situation with them. Provide them with all available documentation, including Form-H, receipt in US dollars, and any declarations from the handicraft manufacturer.
2. **Communication with Suppliers**: - Communicate with your suppliers of inputs (raw materials) about the export scenario. Provide them with assurances and documentation (like Form-H and export proofs) that the packing material they supplied to you was indeed used for exports.
3. **Bill of Entry Details**: - Ensure that the Bill of Entry details accurately reflect the shipment and the goods being exported, even if your packing material is not explicitly mentioned. Collaboration with the handicraft manufacturer in this regard is crucial.
### Conclusion
To summarize, while you may not have direct control over the export documentation for the handicrafts, you can use Form-H, US dollar receipts, and declarations from the handicraft manufacturer to substantiate your claim that your packing material was used for export. Engage with your suppliers and clearing house agents to resolve any issues related to documentation and ensure compliance with export and excise regulations. Seek guidance from a local tax expert or consultant who can provide specific advice tailored to your situation and help navigate through these complexities effectively.
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