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Combined stuffing of products

Prashanth S (Sr.Officer- Finance) (44 Points)

29 February 2012

Dear All,

Can anyone please tell me any rules regarding the combined stuffing of products of various units in one unit ine xcise or customs.

The conditions are

1.Invoices are raised in the respective unit

2. AREs are raised from the respective unit

3.Only stufifing is done in one unit of the products of other unit.

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4 Replies

Mallikharjun (Deputy Manager) (304 Points)
Replied 29 February 2012

Hope this doubt is relating to exports since you are telling that ARE. There are two options available.

Option 1

One unit (Say Unit A) receives all the goods from different units under excise invoice (after payment of duty)
Unit A loads all the goods in the container and put customs seal and then export the goods
Respective units (Units which send goods to Unit A) will apply for excise rebate on these gooods based on the shiping bill, bill of lading and ARE endorsed by customs

Option 2

Say you have three units, Unit A, B and C
Unit A will call the container, load the goods, seals the container with customs seal and sends to Unit B.
Unit B breaks the customs seal infront of superintendent and load their goods also, puts the seal and sends to Unit C
Unit C will break the seal infront of his superintendent and finally load their goods also. After loading, customs seal shall be made and can move the goods to customs area
In all the units where this customs seal is broken, superintendent shall write on the back of ARE that "seal is broken infront of me and goods are loaded"
Final shipping bill and bill of lading is sufficient for proof of export for all the units.

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Prashanth S (Sr.Officer- Finance) (44 Points)
Replied 29 February 2012

Thank you sir for the information....

In my case what i need to know is..

1. Unit A has some goods to be exported to Party B

2.Unit B has also some goods to be exported to Party B

3.Party wants all in one container

4.So Can unit A send the goods in their invoice and ARE to the factory of unit B where the goods can be stuffed in one container and then despatched to the Port Area? Whether the excise range of unit B can provide permission for doing so?

Arun Kumar Singh (GST Advocate) (15220 Points)
Replied 29 February 2012

Often export goods of more than one manufacturers is required to be consolidated. For this, export goods of one factory have to be taken to another factory. this is permissible if done under supersvision of excise authorities. (Chapter 7 part V para4.1 and chapter 8 part IV para 3 of CBE&C's CE manual)