Procurement of Raw material without duty

[Hemant Kumar]

Dear All,

We want to procure raw material from our domestic supplier. Domestic supplier come under exicable unit. Now, we have following questions?

Can we procure the material without payment of duty if we shall export the finished products?

Can we take rebate claim under rule 18 if we procure the material without payment of duty?

Can we avail drawback and other incentive against our export?

What are the procedures?

regards

Hemant Sharma

 

 

[Mahir S]

Yes

No

Yes

AI Summary

Duty-free procurement for exports permitted, but rebate claims under rebate provisions are unavailable; drawback and export incentives stay claimable.
Procurement of raw material from a domestic excisable supplier may be made without payment of duty for exported finished products; rebate under the rebate provisions is not available where material is procured without duty, while drawback and other export incentives remain claimable. Procedural details are not provided.