B1 bond without excise duty from jobworker

[Asked by Guest]

Dear Sirs,

We would like to export directly our goods from our job worker factory in gujarat, although we have our own UT-1 with Asst comm of central excise and customs, for our factory exports, but now can we utilize the same UT-1 for duty free export from job worker.

Or If we can not utilize this then what is the alternative to export from our job worker factory without payment of duty, ? is it B1 bond ? through which we can get CT-1 issued from range office and export it using CT1, and then we submit proof of export in stipulated time.

Appreciate your expert advice in this regards.

thank you,

Mitesh

[MUKUND THAKKAR]

please refer notification no 42/2001 dated 26.01.2001.which has self explanatory..

please provide CT-1 need not take separate bond for you can utilised your LUT for getting CT-1. same has been obtain from range office. and submitted to your job worker. you will act as a merchant exporter and Complete export procedure.

thank you sir

[YAGAY and SUN]

If you want to export from Job Worker's premises then you would have to seek permission from the Jurisdictional Commissioner under intimation to Job Woker's commissioner. After this permission, You can use your own UT-1.

Thank you sir, for your valued feedback,

So, I need to write a letter to my juridiction ac/dc and cc to range about my intention of export from job workers premises, using my UT-1 (existing one). I was told we need to have another one ??

One more thing I need to register this product in my RC, as the product which I want to export from Job workers premises is something different which I can not manufacture in existing factory, whether this transaction will be called as merchant export or manufacture export.

appreciate your kind advice on this please.

Thanks

Mitesh

[YAGAY and SUN]

For this transaction you will be treated as Merchant Exporter. However, you can export it manufacturer exporter as job worker will not be treated as Manufacturer Exporter.

AI Summary

Export from job worker premises: use LUT to obtain CT-1 and export under principal's UT-1 after commissioner permission.
Export from a job worker's premises can be effected using the principal's existing UT-1 after obtaining permission from the jurisdictional commissioner and intimating the job worker's commissioner. A separate B1 bond is not necessarily required where a valid Letter of Undertaking is used to procure CT-1 from the range office; the CT-1 is to be provided to the job worker and export proof furnished within the prescribed time. Such exports are treated as merchant exports by the principal.