MERCHANT EXPORTER CONDITION

[RAM SHARMA]

DEAR EXPERTS,

OUR COMPANY IS A MANUFACTURING EXPORTER COMPANY NOW WE WANT TO BECOME A MERCHANT EXPORTER. HOW WE CAN BECOME A MERCHANT EXPORTER. PL ADVICE.

THANKS

[YAGAY and SUN]

First of all you would have to seek amendment in the IEC (i.e. Importer and Exporter Code) through the Jurisdictional DGFT's office that you are willing to operate as manufacturer exporter as well as merchant exporter.  Rs. 1000/ - is payable as fees.

In VAT/CST/Entry Tax registration certificates amendment is also mandatory.

For procuring of goods without payment of duty from the manufacturer exporter, General Bond B-1 with security or surity as the case may be filed to the Jurisdictional DC/Commissionerate.  CT-1 should be sent to the manufacturer exporter.  In the shipping Bill name of the manufacturer exporter should be displayed.  ARE-1 form will be singed by Manufacturer Exporter as well as by the Merchant Exporter.

[RAM SHARMA]

If Merchant Exporter want to stuffing the containor in own premises then what will be the ARE-1 procedure and which value mention in ARE-1 whether it is Manufacturer value or Merchant Exporter value. Pl advice.

[YAGAY and SUN]

You would have one time permission from Customs department (NOC from Central Excise department that they do not have any objection to depute their staff to supervise the stuffing of container in Merchant Exporter's permises) for stuffing the container in your premises.

Prior intimation to the department for stuffing of container should be provided.

On the ARE-1 you would have to mention you invoice value and duty amount should be as per  manufacturer's invoice alongwith bond no and CT-1 No.

AI Summary

Merchant exporter registration requires IEC and tax amendments, bond filing, CT 1 issuance and ARE 1 customs compliance.
To become a merchant exporter amend the Importer and Exporter Code and VAT/CST registrations, file a General Bond B 1 with security before the jurisdictional DC/Commissionerate, and issue CT 1 to the manufacturer. The shipping bill must show the manufacturer exporter; the ARE 1 is to be signed by both parties and record the manufacturer's invoice value and duty along with bond and CT 1 details. For stuffing at the merchant's premises, obtain one time Customs permission and an excise NOC to deputise staff, give prior intimation, and ensure ARE 1 reflects manufacturer invoice and bond/CT 1 references.