Export Under excise

[Guest]

What is the procedure to send instrument (Finished Goods) as demo, free of cost for export under LUT ? 

[Mahir S]

GR Waiver form is required for such export.

Banks do consider requests for grant of GR waiver (AD Category) from exporters for export of goods free of cost

[Guest]

Thank You Mr. Naveed.

Can you please provide detail information,as how to go ahead with it.

[YAGAY andSUN]

Dear Sunil,

In continuation to the reply submitted by Mr. Naveed, please find a detail reply to your query: -

1. You would have to prepare three sets of Invoice and Packing list duly stating that there is foreign remittance involved in this transaction.  A certificate from CA would also be required.
2. All the three copies would be sent to Authorized Dealer i.e. your banker.
3. On the basis of above documents banker will issue a GR Waiver Certificate
4. You would have to pay the Central Excise Duty at applicable rate on removal of finished goods from your factory premises.
5. Input Tax Credit, if any, would also be reversed under the State VAT Act.
6. You would have to mention the GR-Waiver number on the Shipping Bill.
7. If you intent to bring back the instrument in India, then, the time limit is within three months from the date of export. in this case you would have to furnish the exchange control copy of the Bill of Entry with you AD.  Otherwise, if the instrument is destroyed during the demo or lab test, then you would have to submit a certificate from your counterpart to your AD.

We hope that the above procedure would be helpful to you to complete this transaction.

Regards ,

Team YAGAY & SUN

(Indirect Tax Consultants)

[Mahir S]

Thanks for the reply, Sir. It would had been quite difficult for me to explain it in such detail.

AI Summary

GR waiver required for free-of-cost exports; banker issues certificate after invoices, CA certificate, and excise compliance. Exporting finished goods free of cost for demonstration requires a GR Waiver from the Authorized Dealer bank. Exporters must prepare three sets of invoice and packing list stating foreign remittance, obtain a CA certificate, and submit these to the bank which may issue the GR Waiver. Central Excise duty must be paid on removal and any Input Tax Credit reversed; the GR-Waiver number must be mentioned on the Shipping Bill. For return of the instrument, reimportation within three months requires furnishing the exchange control copy of the Bill of Entry to the Authorized Dealer, or if destroyed abroad, a counterpart's certificate must be provided.