Is Ex.duty applicable for export?

[somasuntharam amp]

Hello Sir,

This is Soma from Madurai. I have just started exporting Blood collection tube (medical lab items) to SA.

I purchase from Gujarat manufacturer and export from Mumbai air port. My query is the manufacturer is charging ex.duty and sales tax in my invoice. As per my knowledge no duty or tax will be charged for exporter, right? I do not have any exact proof to convince the manufacturer. So, please clarify/advice me on this. Expecting your reply asap. Thanks

[KASTURI SETHI]

Either manufacturer or merchant exporter can claim rebate of duty paid on exported goods. If merchant exporter claims rebate of duty, manufacturer will submit disclaimer certificate.

[Rajagopalan Ranganathan]

Sir,

Since you are a merchant exporter, you please execute B-1 bond with Maritime Commissioner or Assistant Commissioner/Deputy Commissioner of Central Excise (Export) at Mumbai. Then obtain from him CT-1 Certificate (s). Forward the same to your supplier manufacturer and obtain the excisable goods from him without payment of duty and export the same under bond without payment of duty. OR

Obtain the excisable goods from your supplier manufacturer on payment of duty and export the same under claim of rebate of excise duty paid on the exported goods. For detailed procedure go through Chapters 7 & 8 of CBEC's Central Excise Manual which is available in www.cbec.gov.in or TMI web site.

[Ganeshan Kalyani]

Sri Kasturi Sir and Sri Rajagopalan Sir, thanks for the crystal clear reply.

[somasuntharam amp]

Kasturi Sethi and Rajagopalan Sir, thanks for yur clear reply. Will check and and come back to you if i have any queries.

Regards,

Soma

AI Summary

Exemption from excise duty: exporters may use bonds and CT-1 certificates or claim rebate after paying duty.
A merchant exporter can procure excisable goods duty-free by executing a B-1 bond and obtaining CT-1 certificates to furnish to the manufacturer so goods are released for export under bond; alternatively, goods may be taken on payment of duty with the exporter claiming rebate of excise duty on exported goods or the manufacturer claiming rebate and issuing a disclaimer certificate.