Query CT1 exports

[Rajan Rajan]

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

[MUKUND THAKKAR]

Dear Rajan,

Your merchant exporter is responsible to Pay the duty.

Initial goods exported from your factory under CT-1. so you need not worry about the proof of export. your merchant exporter had submitted bond to concern authority for getting the CT-1 for export, and it is his responsibility to submit the proof of export against CT-1. if your Merchant exporter not submitting the POE with in six month CT-1 issuing authority will recover the duty from Merchant Exporter.

AI Summary

Liability for duty: merchant exporter must submit proof of export and bears duty risk if proof is not furnished. Merchant exporter is responsible for submitting proof of export and for payment of duty where goods were dispatched under CT-1 issued against the merchant's bond; the manufacturer need not furnish proof in that situation. If the merchant exporter fails to submit proof of export within the prescribed period, the CT-1 issuing authority may recover the duty from the merchant exporter.