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Export by traders with out paying excise

RAMESH CHANDRA GUPTA (A.G.M.PURCHASE) (35 Points)

31 March 2012

We are propritor ship firm and not registered with excise.

we want to export equipments to Bangladesh.

We donot want to pay excise duty to equipment supplier.

Supplier is located in Pune and Ahmedabad whereas we are located at Delhi.

Please advise me the procedure to get equipment from manufacturer with out paying excise duty as the requirement is for export.

regards,

R.C.GUPTA

9990654294

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3 Replies

Sunil Kumar G (AGM Taxation) (373 Points)
Replied 06 April 2012

If you want to export without payment of duty, you should follow the following procedure,

1) You should execute a general bond with the Jurisdictional AC/DC and issue the CT-1 Certificate In the name of the manufacturer.

2)The merchant exporter has to send the ARE-1 duly signed by him addressing to the Manufactuere Exporter's Jurisdictional AC.

3)After receipt of the CT-1 and the ARE-1, the manufacturer exproter can clear the goods without payment of duty by quoting the CT-1 reference No on Excise Invoice and ARE-1 counter signed by by the Manufacturer Exporter.

4)AFter Export, you may call the Self Certified Copies of Proof of Export for Manufacturer Exporters Record.

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vinay sastry (Innovator) (29 Points)
Replied 11 May 2012

Mr Sunil, I have following query

1. What is the bond, is it worth the duty amount. Do I have to deposit with Central excise. How can I recover the same.

2. Is the proof of export a Bill of Entry. Do I have to send by attesting this, to the manufacturer.

regards

vinay sastry

Sunil Kumar G (AGM Taxation) (373 Points)
Replied 21 May 2012

Bonds should be executed on non judicial stamp paper. Amount of stamp duty depends on state. Bond should be executed in favour of and in name of President of India.

Though any exporter (Manufacturer-exporter or merchant-exporter) can furnish bond, the merchant-exporters are necessarily required to furnish bond in the B-1 Form specified in Annexure-16 of notification no. 42/2001-Central Excise (N.T.), supra with such security or surety as may be specified by the concerned bond accepting authority. The bond shall be in a sum equal at least to the duty chargeable on the goods for the due arrival of export goods at the place of export and their export there from under Customs or as the case may be postal supervision. The officer who will accept the bond, will also be responsible for discharging that bond upon furnishing proof of export by the exporter.

The question of furnishing of ‘security or surety’ is mainly relate to merchant-exporters who are not assessees of the Central Excise Department. In this scenario, the Board has decided that security (Bank Guarantee or Cash Guarantee or Cash Security) or surety need not be insisted upon from Super Star Trading Houses, Star Trading Houses, Trading Houses and Export Houses provided that –

the exporter has not come to adverse notice of the Central Excise or Customs Department in last three years from the date under consideration;
all the formalities required under Central Excise Act and rules made thereunder are regularly complied with by the exporter, especially regarding timely submission of proof of export and deposit of duty with interest in time where proof of export is not received within stipulated time frame;
A self-attested copy of the proof of Status (Super Star Trading Houses, Star Trading Houses, Trading Houses and Export Houses) from concerned authority (Ministry of Commerce and Industry – Directorate General of Foreign Trade) is submitted.

Other exporters shall be required to furnish surety equal to full bond amount or security equal to twenty five percent. (25%) of the bond amount, along with the bond.