Excise duty on tool & Dies(Export)

[Asked by Guest]

Dear Expert,

We are manufacturing of auto parts and export to various country now my query is that if we are manufacturing tool and die for produce of exported material and customer payment of tool & dies value please suggest us Excise duty applicable. Otherwise we are show amortize value on ARE-1(Export under UT- 1)at time of clearance of producing goods.

[Mahir S]

Sir,

Excise duty applicable on the value of finished goods plus amortized cost of tools and dies.

On the ARE-1, you can show the total assessable value inclusive of amortize value.

You can also take guidance from the Excise Range officer during their visit at the time of export of goods.

[YAGAY and SUN]

There is no duty on export. But for sake of safe guarding revenue amortization cost of tools and dies must be added in the assessable value of the auto parts when exported.

AI Summary

Assessable value: include amortized cost of tools and dies when exporting goods, affects excise assessment.
Practitioners advise that the assessable value of exported finished goods should include the amortized cost of tools and dies used in production, and that exporters may declare this inclusive value on ARE 1/UT 1; inclusion is recommended to safeguard revenue despite exports being outside excise levy in destination.