Pradeep Kumar Banduni (Commercial) (190 Points)
30 June 2011We want to do export our manufactured goods from India to Bhutan. Will excise duty apply on export to Bhutan? if yes or no please brief us & tell us what is necessary formalitis for Export from India to Bhutan? Also I want to know about the trading artciles which have purchased by us on 2% cst and C form, can we do export those articles too.
Regards
Pradeep Kumar Banduni
CA. Rajesh P. Ahir
(In Service @ PSU)
(687 Points)
Replied 30 June 2011
Pradeep Kumar Banduni
(Commercial)
(190 Points)
Replied 30 June 2011
As per your above reply "At the time of export we have to pay excise duty on the export invoice to Bhutan and when we will produce proof of export to Bhutan to the department that duty will be reversed?" please clear.
Regards
Pradeep Kumar Banduni
CA. ANKUR JAIN
(CA.....)
(2800 Points)
Replied 30 June 2011
RAMESH KUMAR VERMA
( CS PURSUING )
(43853 Points)
Replied 01 July 2011
Please noted that:-
AS Per Notification no. 51/94-CE (NT) dated 22.9.94 as amended – procedure for export to Nepal and Bhutan without payment of duty.
Export under bond without payment of duty to Nepal and Bhutan is subject to the following conditions
The exporter is required to execute a bond under Rule 13 before the Assistant Commissioner of Central Excise having jurisdiction over the factory of the manufacturer or any other place from where the goods are to be exported and is required to furnish a certificate in Appendix 1 to the said notification from the Reserve Bank of India or any other bank duly authorised to deal in foreign exchange showing that full payment has been received.
On receipt of the said certificate and on completion of the conditions of the bond, the exporter shall be discharged of his liabilities under the bond. Capital goods are permitted to be exported to Nepal against any global tender invited by His Majesty’s Government of Nepal and the payment for which is received in the Indian currency, without payment of duty, subject to the condition that the exporter executes a bond and furnishes a certificate duly signed by the concerned Bank of India that full payment has been received in Indian currency by the said bank.
On receipt of such certificate and on completion of the conditions of the bond, the exporter is discharged of his liabilities under the bond.
The exporter is required to follow the procedure as provided in Appendix 2 to the said notification. The procedure is explained below
The exporter is required to make 6 copies of the invoice as prescribed in Annexure-A to the notification and make the following declaration on the same:
" I/We declare that the goods entered herein are intended for export to Nepal/Bhutan in bond, and shall not be diverted or delivered en route to any other country".
The exporter shall present all the 6 copies of the invoice duly filled in along with the goods before the proper officer of Central Excise. The proper officer after verification of the goods and sealing them would make an endorsement on all the copies of the invoices.
The original copy of the invoice is given to the exporter. Duplicate, triplicate and quadruplicate copies under sealed cover are given to the exporter for delivering the same to the Customs officer incharge of the Land Customs Station through which the goods are to be exported. The quadruplicate copy is forwarded to the Central Excise officer who has accepted the bond and quintuplicate copy is retained by the proper officer.
On arrival at the Land Customs Station, the goods are presented before the Customs officer incharge along with original copy of the invoice and the sealed cover containing copies of invoices.
The Customs officer, after verification of the goods with the invoices would make the endorsement on the invoice and hand over the original copy to the exporter. The duplicate and triplicate copies are sent directly to the Nepalese or Bhutanese, as the case may be, Custom officer incharge Land Customs Station through which the goods are to be imported into Nepal or Bhutan.
The Customs officer incharge of Land Customs Station at Nepal or Bhutan will return the duplicate copy of the invoice, after making an endorsement thereon regarding verification and allowing of import into Nepal or Bhutan, directly to the Customs officer incharge Land Customs Station in India.
The same is eventually forwarded to the Central Excise officer incharge of the factory or warehouse from where the goods were removed for export.
EXPORT PROCEDURE
The Import Procedure detailed above shall apply mutatis mutandis for Bhutan’s exports to third countries.
MOVEMENT OF GOODS FROM ONE PART OF BHUTAN TO ANOTHER THROUGH THE INDIAN TERRITORY
For the movement of goods including forestry products from one part of Bhutan to another through the Indian territories, the following procedure shall be observed:-
The Bhutan Customs will issue a Transit Declaration in the prescribed form (Annexure II) to the owner of the goods or his agent. In the case of third country goods, the transit declaration would also carry an undertaking from the Customs authorities of Bhutan that the goods are meant for consumption in Bhutan only, and in cases of deflection, the laws of both Indian and Bhutan Customs would be applicable. Movement of goods through India accompanied by the Transit Declaration shall not be subject to any sample checking by the Indian authorities except in cases where a specific information is made available to the Indian Customs authorities about consignment(s) carrying goods which are contraband in nature or contrary to the importability of those in any manner. These goods will be examined by Indian customs while transiting through India.
At the entry point in India, the Transit Declaration pertaining to goods of third country origin shall be presented to the Indian customs who shall endorse and return it to the owner or his agent and allow movement of goods.
The Transit Declaration shall be deposited with the Bhutan Customs Officials at the point of re-entry into Bhutan who shall release the goods after inspecting the same. for more information link is:
https://www.eximguru.com/exim/trade-agreement/india-bhutan-free-trade-agreement.aspx
peter
(consultant)
(22 Points)
Replied 09 August 2011
I'd like to introduce you to https://south-pak.com/about/publications/blog/2011/07/20/custom-transit-cases/ . When your products or your equipment needs to go from point A to point B and back again, and then again, and then again, all within just one average day, you know you need to invest in proper housing for your devices. That’s why South-Pak’s customers like Brinks and Lockheed Martin come back again and again.Most companies are after hard cases with rigid edges that can stand strong forces and protect the contents no matter what. For this, South-Pak offers a wide array of custom transit cases such as rolling hard cases or custom carrying cases.
ANIL MATHUR
(SR. MANAGER ACCOUNTS)
(120 Points)
Replied 11 July 2012
I want to Export Prefabricated shelter to Bhutan. Any Excise duty applicable or not, if yes what will be the procedure to export ?
ANIL MATHUR
(SR. MANAGER ACCOUNTS)
(120 Points)
Replied 11 July 2012
I want to Export Prefabricated shelter to Bhutan. Any Excise duty applicable or not, if yes what will be the procedure to export ?
Sukhdeep Singh
(MBA)
(21 Points)
Replied 09 July 2013
Please clarify!
Export to Bhutan in bond against payment in Indian Rupees
We want to export Commercial Vehicles to Bhutan, against payment in Indian Currency, Is Excise Duty applicable, do we have to pay ?
Thanks in Advance
Prabhat Kumar
(Advocate & Consultant)
(1912 Points)
Replied 11 July 2013
Export to Bhutan is treated at par with other exports,so you can export your goods to Bhutan without payment of duty.
ABHAY MORE
(4 Points)
Replied 28 March 2017
We have exported the paints & varnish products to bhutan in the month June 2013 for which we have received every documents of bhutan other than indian custom clearance certificate but now sales tax department required custom clearance certicate which was not provided to us at that time. further after discussion with the importer he inform to us that this certicate was not provided by the custom as it came into force from the year 2015 onwards. so pls let us now whether custom should have provide us the documents or not.
CAclubindia
