Regarding-Export & Registration

[Sumeet Tholle]

Dear Sir,

ABC, who is registered with excise dept, received an export order for supply as well as erection of machinery from England.

ABC appointed PQR as subcontractor for supply as well as erection work. PQR not registered with Excise dept.

PQR again appointed XYZ ,who is registered with Excise dept to supply machiney and PQR will do erection work.

Being export, no body wants to pay excise duty.

Is Central Excise registration of PQR required ?

Pl. Guide about procedure also.

Thanks.

Sumeet Tholle

AI Summary

Merchant exporter status: non-registered subcontractor treated as exporter and may export subject to bond and certificates.
A subcontractor who actually executes supply or erection of exported goods is treated as the merchant exporter and need not be registered with Central Excise for exporting. Merchant-exporters must furnish a B-i bond with prescribed security or surety unless exempted; the bond must cover duty amount and will be discharged only upon satisfactory proof of export. Merchant-exporters also require CT-1 certificates to procure goods for export, whereas manufacturer-exporters need not obtain CT-1 for export.