Procedure - buying local goods and then exporting

[madhavvan n]

a company has trading regn under excise it wants to buy some local goods and then export what is the procedure to be followed under excise / customs

[Surender Gupta]

Whether that company wish to procure that material without payment of central excise from the supplier of that material. In that case the procedure prescribed for merchant exporter (i.e. procurement against CT-1 certificate after furnishing of bond etc.) would be required to be followed. But in case, material is procured on payment of duty of excise without following the prescribed procedure, that company would claim duty drawback or depb as prescribed rate or get them fixed as per the Foreign Trade Policy.

AI Summary

Duty-free procurement for export: follow merchant-exporter procedures using CT-1 bond, or procure on payment and claim duty drawback or DEPB.
Procurement for export may proceed either under merchant-exporter procedure-procurement against a CT-1 certificate after furnishing a bond to obtain goods without payment of central excise-or by purchasing on payment of excise and thereafter claiming duty drawback or benefits under the DEPB scheme as prescribed under the Foreign Trade Policy.