Export through third party

[Guest]

Dear Sir,

We are a mfg co, can our supplier send goods directly to our third party and that third party can export the goods on our ascertain price without payment of duty under excise on our behalf, if yes please kindly describe the procedure in brief and under which rule, please explain.thanks and regards.

[Mahir S]

Sir,

You may opt yourself as a Manufacturer Merchant Exporter under Nofn.42/2001 CE(NT). Your third party can procure goods without payment of duty from your supplier against CT-1, and then export the same from their (third party's) factory premise on your behalf, based on the said CT-1 issued by you.

[VINOD KUMAR]

But respected sir, the CT-1 will be issued in the name of manufacturer exporter and only he can export the goods in his name. I have never seen such a provision. Please quote the relevant provision.

[Mahir S]

Sir,

A Manufacturer exporter can also export goods under noti. no. 42/2001 CE N.T. and can also get a CT-1 issued in the name of others for the purpose of export.

In this case, the manufacturer export shall execute a bond under the above said notification and get a CT-1 issued in the name of the third party. The supplier shall send the goods to the third party on their invoice. The third party shall then export the goods (received from the supplier on behalf of the exporter), based on the CT-1 received by him from the manufacturer exporter.

AI Summary

CT-1 export facilitation permits third-party receipt and export of goods on manufacturer's behalf under prescribed notification. A manufacturer may register as a Manufacturer Exporter, execute the prescribed bond, and obtain a CT-1 issued in the name of a third party; the supplier can deliver goods to that third party without payment of excise duty against the CT-1, and the third party may export those goods from its premises on behalf of the manufacturer exporter relying on that CT-1.