Third Party Export/Merchant Export

[SHIVKUMAR SHARMA]

Dear Expert

Please give your Expert Opinion On the Following Issue:-

We are manufacturer of chemicals & we want to Export our product through third party but third party is not registered with central excise deptt.can you help us in the matter.

SHIVKUMAR SHARMA

[Rajagopalan Ranganathan]

Sir,

If you want to export through a third party (called as merchant exporter) he need not get registered with Central Excise Department. But he has to execute a bond in Form B-1 with the jurisdictional Deputy/Assistant Commissioner having jurisdiction over his business premises. If the merchant exported in port cities he can execute the bond with Maritime Commissioner of Central Excise. On executing the bond the Superintendent of Central Excise having jurisdiction over his business premise will issue CT-1 Certificate on the strength of which you can clear the goods without payment of duty for export. Please refer to Notification NO. 42/2001-CE (NT) dated 21.6.2001 as amended for detailed conditions and procedures to be followed by you and merchant exporter.

[Mahir S]

Further, you can tell the third party exporter to contact the Headquarter Technical section of the jurisdictional Excise Commissionerate for necessary guidance and for execution of the bond

[Varun Arora]

Dear Experts,

Please guide in this particular case If Merchant Exporter is not providing the CT-1 then Can the Supplier Manufacturer supplies the goods against Regular Annual LUT filed by him i.e. mfrer supplier.

Thanks in advance.

AI Summary

Merchant exporter bond and CT-1 permit duty-free export clearance when third party lacks excise registration.
A merchant exporter need not be registered with Central Excise if they execute a Form B-1 bond with the jurisdictional Deputy/Assistant Commissioner or Maritime Commissioner in port cities; upon bond execution the Superintendent issues a CT-1 certificate permitting duty-free clearance for export. Merchant exporters should consult the Commissionerate technical section for bond execution and procedural guidance. A contemporaneous question remains whether a manufacturer may use its own annual Letter of Undertaking when the merchant exporter cannot provide CT-1.