Export to Nepal

[Guru Murthy]

Dear all,

We have exported our products to Nepal under ARE.1 and export invoice. We have not received Original and duplicate copies of ARE.1 for filing proof of export with our Jurisidictional authority.My question is

1) Should we have to submit original & duplicate copies of ARE1 for filing proof of export?.

2) who is going to sign ARE.1 copies at the border?

3) In case of non receipt of ARE.1 Copies, should we have to pay duty involved in the transaction?

If any body who has exported goods to Nepal, please clarify my points.

Thanks & Regards

Gurumurthy

[Rajagopalan Ranganathan]

Dear shri. Guru Murthy,

Query No. 1 ; - Yes.

Query No.2: - The Customs officer who supervises the export of goods at the Land Customs Station at Indo-Nepal Border.

Query No.3: - Your clearing agent is responsible to obtain the original and duplicate copy of the ARE-1 duly signed by the Customs Officer posted at land customs station at Indo-Nepal border.  If you are not able to produce the proof of export within six months from the date of removal from the factory/warehouse, then you have to pay duty with interest on your own without waiting for a demand from the department.  Interest is to be paid is to be calculated from date removal to date of payment of duty.

[YAGAY andSUN]

Dear Gurumurthy,

We are duly agreed with Mr. Rajagopalan on the first two replies to your queries.  But we have a different view point on the third query raised by you.

In our opinion, even if you don't have the Original & Duplicate copies of ARE-1 form, even then, you can submit the following documents as proof of export, namely:-

1. AWB/Shipping bill/Lorry receipt etc.
2. Land receipt duly signed/acknowledged/endorsed by the Customs Department
3. Bill of Lading
4. Commercial Invoice/Packing list duly signed/acknowledged/endorsed by the Customs Department.
5. Quintuplicate copy of the ARE-1 duly signed by the C.E, and Customs Department.
6. Online Bank Realization Certificate.

There are plethora of judgments in this regard in favour of assesse.

Regards,

Team YAGAY & SUN

(Management & Indirect Tax Consultants)

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AI Summary

Proof of export: absence of acceptable export documentation may trigger duty liability and interest payable. Exporters must obtain original and duplicate ARE-1 forms signed by the Customs officer at the land customs station as primary proof of export; if proof is not produced within the prescribed period the exporter must pay duty with interest from removal date. Alternative proofs including airway bills, shipping bills, land receipts, bills of lading, Customs acknowledged commercial invoices/packing lists, quintuplicate ARE-1 copies, or online bank realisation certificates may be accepted where original ARE-1 copies are unavailable.