COMPULSORY ARE-1

[RAM SHARMA]

DEAR EXPERTS,

WE ARE MANUFACTURER AND WANT TO SALE TRADING GOODS EXPORT. WE HAVE NOT TAKEN CENVAT CREDIT ON SUCH INPUTS. CAN WE REMOVE TRADING GOODS REMOVE AS SUCH OR WITHOUT PAYMENT OF DUTY. IS IT COMPULSORY TO MAKE ARE-1 FOR REMOVAL OF ANY INPUT OR TRADING GOODS E XPORT.

THANKS 

[YAGAY andSUN]

ARE-1, stands for Application for Removal of Excisable Goods form No. 1.

if you havn't availed the CENVAT credit on inputs intended for trading under export to another country, even then, it is better to export under ARE-1, for the purpose of submission of proof of export and availed the benefits associated with exports.

Further, removal of goods as such and trading are two different activity though it may overlap each other.  But if you are manufacturer and avail the CENVAT credit on the inputs intended for export then it may beneficial to you as there is no duty on export (except in few cases).

[RAM SHARMA]

WE ARE MANUFACTURER AND WANT TO REGULAR SALE OF OUR INPUT WITHOUT ARE-1. PL QUATE ANY CASE OR TELL SAFE SIDE PROCEDURE BECAUSE NEITHER WE ARE TRADER NOR MERCHANT EXPORTER.

THANKS

[YAGAY andSUN]

It is advisable to export inputs (as such) under ARE-1.  You also need to get amend your IEC since you intent to trade in inputs.

[ASHOK AMIN]

Dear Experts,

There is still confusion in respect of the preparation of ARE-1 for trading purpose. If the trading unit is not regsitered under central excise, then, is it still necessary to prepare ARE-1 ? Please clarify in this matter.

Thanks.

[YAGAY andSUN]

Yes, as  ARE-1 has to be signed by the both parties i.e. the Manufacture Exporter and the Merchant Exporter.

AI Summary

Export documentation requirement: ARE-1 recommended for exporting inputs to establish proof of export and ensure compliance. ARE-1 is advisable for export of inputs or trading goods to establish proof of export and secure export-related benefits; it must be signed by both manufacturer-exporter and merchant exporter, and manufacturers intending to trade inputs should amend their IEC and registrations accordingly. Even when CENVAT credit has not been availed, ARE-1 provides a safer compliance mechanism distinguishing removal as such from trading sales.