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Are-1 and excise bill for manufacturer to merchant exporter

Varun (Proprietor) (34 Points)

31 October 2012

We are an excised manufacturing unit.

Our customer is a merchant exporter.

For our supplies to them, they submitted their ARE-1 and CT1 to us. What is the procedure for Export, Documentation and Invoicing?

i.e.

(1) Which ARE-1 Form copy is to be submitted to our Range and which has to be returned to the customer (Merchant Exporter)?

(2) Invoicing details - would duty be charged? The customer is insisting they would not need to pay excise as per our invoice. Please help to understand how the invoice should be made and what credits would be obtained? And how these would be entered.

(3) Would a commercial invoice be required for the same?

Appreciate a quick reply to the same.

Thanks in advance.

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4 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 01 November 2012

Originally posted by : Varun

We are an excised manufacturing unit.

Our customer is a merchant exporter.

For our supplies to them, they submitted their ARE-1 and CT1 to us. What is the procedure for Export, Documentation and Invoicing?

i.e.

(1) Which ARE-1 Form copy is to be submitted to our Range and which has to be returned to the customer (Merchant Exporter)?

- you have to intimate the Range officer 24 hrs in advance with all copies of ARE-1( they will return the same and will held only the intimation) physical supervision of R/O is needed for for merchant export cases.

(2) Invoicing details - would duty be charged? The customer is insisting they would not need to pay excise as per our invoice. Please help to understand how the invoice should be made and what credits would be obtained? And how these would be entered.

- You have to issue "invoice for export" and would calculate duty, which would be deferred through the Bond reference and CT-1"

(3) Would a commercial invoice be required for the same?

- Commercial invoice would be issued for getting Form H from the merchant exporter for vat purpose.

Appreciate a quick reply to the same.

Thanks in advance.

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paresh (Accountant) (58 Points)
Replied 10 November 2012

Dear Varun,

your three Questation.

Reply on your 1st Questaion : ARE-1 is provided by your merchant exporter with his stamp and signature with CT-1 bond. And Excise duty is already defined in CT-1 bond and same duty is apply in your commercial invoice.

2. ARE-1 Subimission .. ARE-1 prepared in Five copy with specific colour code. submitted as per below procedure.

A. Original for White : send with Exporter

B Duplicate for Buf : Send to Exporter

C Triplicate for Pink : Submitted to Excise Ragne with Envelop

D Quaduplicate for Green.: Submit to Excise

E. Quardtriplicate Blue.: File Copy.

Submitted in your Excise department with in 24 hours from the date of Clearnce.

Now at here complete Clearnce procedure.

Procedure for post clearnce.

Merchant exporter made export on this ARE-1, so custom officer stamp and sign is must be require on 1st or 2nd copy.

Merchant exporter is send back to you 2nd copy with custom stamp and signature which you have submitted to your Excise ragne. so is prove that this material is exported.

Reply on Questation 4 .

Commercial invoice is must be preapred bcz your exciseable material is clearnce under bond. Excise duty is not apply in your commercial invoice, it should be mention in ARE-1 only which pre-indicated in CT-1