Un registered marchant exporter under central excise.

[Narendra Soni]

Dear Experts,

Kindly suggest in the below case:-

"A" is Manufacturer.

"B" is Marchent exporter- who is not registered with central excise.

"B" made a contract with "A" to produce good & export directly from the factory of "A" to the buyer of "B".

1. How "A" can despatch the goods without payment of duty from his factory.

2.Who can execute B-1 Bond.

3.How can CT-1 will be arranged by "B" OR it is not required.

4.Can "A" use his own advance authorisation to fulfill obligation in this export.

Please provide reply with proper Rule/notification with procedure .

Remind-"B" is nor registered with central excise department.

AI Summary

Unregistered merchant exporter: manufacturer may use its bond for duty free dispatch but bears proof of export liability.
If the merchant exporter is unregistered, the manufacturer may dispatch goods duty free using the manufacturer's bond and the merchant's duly stamped ARE 1, but the manufacturer will be liable for submission of proof of export. Alternatively the merchant must register, execute the bond and obtain CT 1. If the manufacturer has used imported inputs under an Advance Authorisation, he may utilise that authorisation by noting it on the shipping bill and being named as supporting manufacturer.