Export Procedure

[Varun Arora]

Dear Experts,

Please resolve my query

EXPORT BY MERCHANT EXPORTER

1.) If Mfrer is supplying goods to Merchant exporter(Bond is executed by Merchant exporter) against CT-1 then Mfrer will not prepare ARE copies(1,2,3 and all) and just after receiving CT-1 Hi will clear the goods.

2.) this case is the same as point no. 1 But in this case Bond will be executed by Mfrer on the behalf of ME and in this case no need to CT-1 and Mfrer will prepare ARE 1 copies as a principle agent on the behalf of Merchant exporter.

In both points is there any need to file LUT by Mfrer who is supplying the goods to Merchant exporter, because if we consider Mfrer point of view then He is safe on CT-1 and can clear the goods no need to file LUT and cancell the LUT??

EXPORT BY MANUFACTURER

1.) If Mfrer Exporter is procuring the goods with Excise duty and availing the cenvat credit then in this case If hi will export then he will prepare ARE -1

2.) If Mfrer Exporter is procuring the goods without paying excise duty then in this case he will follow procedure laid down in removal of excisable goods at concessional rate rules 2001 then in this case He will file file application to Excise officer and hand over it to Mfrer supplier then Mfrer supplier will remove the goods to Mfrer exporter on the basis of this application signed by suprintendent

And in this case Mfrer exporter will prepare ARE-2 copies.

In this case also is there any need to file LUT by Mfrer Supplier who is supplying the goods to Mfrer exporter, because if we consider Mfrer supplier point of view then He is safe on the point of Application as received by MFrer Exporter and can clear the goods no need to file LUT and cancell the LUT??

DEEMED EXPORT

If case if of Deemed export like supply to SEZ and 100% EOU then in this case supplier will prepare ARE-3 copies and receives CT-3 from these units.

 

Is there any option for Mfrer supplier to ME for charging excise duty and Merchant exporter will not avail that cenvat and export the goods and produce export proof to Mfrer supplier and now Mfrer supplier will claim refund for this.

 

Thanks in advance

AI Summary

Clarification Sought on Export Procedures: Manufacturer's LUT Requirements for Supplies to Merchant Exporters Explored in Detail A participant in a discussion forum sought clarification on export procedures involving merchant exporters and manufacturers. The query addressed whether a manufacturer needs to file a Letter of Undertaking (LUT) when supplying goods to a merchant exporter under different scenarios, including when a bond is executed by the merchant exporter or the manufacturer. It also covered procedures for manufacturer exporters procuring goods with or without excise duty and the process for deemed exports to SEZ and 100% EOUs. The response advised consulting a professional due to the complexity of the query.