Dear Sirs,
We have exported against CT1 to XYZ co., till date this consignment lying in XYZ warehouse. More than one year. Not exported due to some unavoidable reasons.
We are the manufacturer exporter. Actual exporter is XYZ and under against their Bond only, CT1 issued to us.
So, far not received admission of proof of exports from XYZ. In this case, Who should pay duty, XYZ or manufacturer exporter.
Please advise
Merchant Exporter XYZ Must Pay Duty for Unexported Goods Held Over a Year; Proof Required Within Six Months A manufacturer exporter raised a query regarding a consignment exported under CT1 to a merchant exporter, XYZ, which has been in XYZ's warehouse for over a year without export due to unavoidable reasons. The manufacturer has not received proof of export from XYZ and is concerned about who should pay the duty. The reply clarified that the merchant exporter, XYZ, is responsible for paying the duty. Since the goods were initially exported under CT1, the merchant exporter must submit proof of export, and failure to do so within six months will result in the authority recovering the duty from them. (AI Summary)
TaxTMI 
TaxTMI 
