Export without duties
This query is : Resolved
26 August 2012
Dear Sir / Madam
We are purchasing material from Siemens Ltd they are having Manufacturing Unit In Navi mUmbai. A client have placed Export Order on us(Supreme Technology)peratining to Taxes & Duties "NIL". As par Tax is consider V will accept FORM-H but how V should convince Siemens for NIL-Duty. Kindly advice & suggest------Regards
We are purchasing material from Siemens Ltd they are having Manufacturing Unit In Navi mUmbai. A client have placed Export Order on us(Supreme Technology)peratining to Taxes & Duties "NIL". As par Tax is consider V will accept FORM-H but how V should convince Siemens for NIL-Duty. Kindly advice & suggest------Regards
26 August 2012
ask the party to execute B-1 Bond in favor Siemens, and CT-1,
take CT-1 and ARE1 from party and handover to siemens, and get goods sealed and endorsed on ARE1 for export,
you have to issue H form to siemens
take CT-1 and ARE1 from party and handover to siemens, and get goods sealed and endorsed on ARE1 for export,
you have to issue H form to siemens
27 August 2012
Thanks for Support, Please let us know endorsement on ARE1-1 will be done by Our Range authority or SIEMENS Supdt Range authority. V are Ist stage dealer & Siemens is both Manufactuerer & Importer
27 August 2012
Agreed with expert.
There are two categories of export without payment of duty
Export of finished goods without payment of duty under bond or undertaking.
Export of manufactured/processed goods after procuring raw material without payment of duty under bond.
The concept of furnishing of a ‘Letter of Undertaking’ by a manufacturer-exporter has been introduced. The clearances for export by a manufacturer-exporter will be effected similar to clearances for home consumption after he furnishes Letter of Undertaking.
The merchant-exporters are required to file ‘bond’ in specified format. A manufacturer-exporter may also file bond and follow the ‘bond-procedure’ specified in the notification.
Under bond procedure, the concept of ‘self-debit’ by the exporter has been introduced. The exporter need not go to the ‘bond-accepting authority for a ‘debit-certificate’ before each removal.
The procedure of ‘acceptance of proof of export’ has been simplified. The concept of ‘ Self-credit" based on the copy of A.R.E.1 duly certified by Customs authorities at the place of export is being introduced.
In each Commissionerate of Central Excise, there will be an officer designated as ‘Deputy/Assistant Commissioner of Central Excise (Exports)’ whose functions will be similar to the Maritime Commissioners.
Number of copies of ‘application for Removal (A.R.E.1)’ has been reduced compared to AR-4. This will be further reduced after completion of computer networking in the Department enabling ‘on-line verification’ of exports.
Must Read:
http://www.eximguru.com/exim/central-excise/central-excise-manual/chapter-7-export-without-payment-of-duty-part-i-general.aspx
There are two categories of export without payment of duty
Export of finished goods without payment of duty under bond or undertaking.
Export of manufactured/processed goods after procuring raw material without payment of duty under bond.
The concept of furnishing of a ‘Letter of Undertaking’ by a manufacturer-exporter has been introduced. The clearances for export by a manufacturer-exporter will be effected similar to clearances for home consumption after he furnishes Letter of Undertaking.
The merchant-exporters are required to file ‘bond’ in specified format. A manufacturer-exporter may also file bond and follow the ‘bond-procedure’ specified in the notification.
Under bond procedure, the concept of ‘self-debit’ by the exporter has been introduced. The exporter need not go to the ‘bond-accepting authority for a ‘debit-certificate’ before each removal.
The procedure of ‘acceptance of proof of export’ has been simplified. The concept of ‘ Self-credit" based on the copy of A.R.E.1 duly certified by Customs authorities at the place of export is being introduced.
In each Commissionerate of Central Excise, there will be an officer designated as ‘Deputy/Assistant Commissioner of Central Excise (Exports)’ whose functions will be similar to the Maritime Commissioners.
Number of copies of ‘application for Removal (A.R.E.1)’ has been reduced compared to AR-4. This will be further reduced after completion of computer networking in the Department enabling ‘on-line verification’ of exports.
Must Read:
http://www.eximguru.com/exim/central-excise/central-excise-manual/chapter-7-export-without-payment-of-duty-part-i-general.aspx
27 August 2012
Dear Mr. Ramesh
Thanks for Reply, but V R little bit confused. Supreme Technology(SELLER) is 3RD party Received Order From OERLIKON TEXTILE (BUYER). NOW V (SUPREME TECHNOLOGY) will purchase the material From M/s. SIEMENS LTD_NAVI MUMBAI (MANUFACTURER)& Supply to OERLIKON. Kindly let us Know who will issue CT-1 & from whom V Should take Undertaking & who will complet ARE1 filling. Th & Reg
Thanks for Reply, but V R little bit confused. Supreme Technology(SELLER) is 3RD party Received Order From OERLIKON TEXTILE (BUYER). NOW V (SUPREME TECHNOLOGY) will purchase the material From M/s. SIEMENS LTD_NAVI MUMBAI (MANUFACTURER)& Supply to OERLIKON. Kindly let us Know who will issue CT-1 & from whom V Should take Undertaking & who will complet ARE1 filling. Th & Reg
27 August 2012
actual exporter will execute the B-1/CT-1 and ARE1 in name of SIEMENS, and will issue H form to SIEMENS,
all the middle dealers will act as a commission agent only.
goods which are cleared without payment of duty is not eligible for sale through dealers, and it should be cleared on behalf of actual exporter only, who will provide the proof of export after the completion of export to department and SIEMENS both.
There is no provision to sell the goods under bond through dealers, so dealers has to ask their share in form of commission for their role in the dealing, from clients ( buyer or siemens, as they deem fit)
all the middle dealers will act as a commission agent only.
goods which are cleared without payment of duty is not eligible for sale through dealers, and it should be cleared on behalf of actual exporter only, who will provide the proof of export after the completion of export to department and SIEMENS both.
There is no provision to sell the goods under bond through dealers, so dealers has to ask their share in form of commission for their role in the dealing, from clients ( buyer or siemens, as they deem fit)
27 August 2012
B-1 Bond should be executed with either Division of the SIEMENS or maritime commissionarate of the actual exporter/siemens, B-1 authority only will issue CT-1, and will take care of discharge of bond after receiving proof of export to discharge the obligation of bond.
27 August 2012
Thanks Mr. Sharma
28 August 2012
thanks expert
dear author, if you have any query ask
dear author, if you have any query ask
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