EXCISE PROCEDURE FOR SALE TO MERCHANT EXPORTER

[NANDKUMAR SAGWEKAR]

 I would like to know the procedure to be followed by the Central Excise Assessee for

 clearances of dutiable goods to merchant exporter or another Central Excise assessee 

 within India  without payment of Central Excise duty. For e.g. ' A ' is factory located at Pune

 and 'B' is customer located at Mumbai . 'B' Place an order on 'A' to sale goods to him without

 charging  excise duty because 'A' is exporting the same goods to overseas buyer.

 

AI Summary

Duty-free clearance to merchant exporter requires CT-1 and ARE-1 documentation and bond-backed export proof.
Clearance of dutiable goods to a merchant exporter without payment of duty requires the merchant exporter to execute a general bond and obtain a CT-1 Certificate and to submit an ARE-1; upon receipt of CT-1 and ARE-1 the manufacturer-exporter may clear goods duty-free by quoting the CT-1 reference on the excise invoice and retaining the ARE-1 counter-signed by the manufacturer-exporter, with prescribed distribution of ARE-1 copies and post-export proof of export retained for records.