MANUFACTURER AND MERCHANT EXPORTER

[RAM SHARMA]

DEAR EXPERTS,

CAN A MANUFACTURER TO BE A MERCHANT EXPORTER SIMENTANIOUSLY AND PROCURE EXCIASABLE GOODS WITHOUT PAYMENT OF DUTY IN HIS WAREHOUSE. PL ADVICE.

THANKS

[YAGAY and SUN]

Yes, It is allowed.  But you would have to seek the amendment in the IEC.

AI Summary

Manufacturer as merchant exporter permitted to procure excisable goods duty-free subject to amending the IEC.
A manufacturer may act as a merchant exporter and procure excisable goods into his warehouse without payment of duty, provided he amends his Importer Exporter Code (IEC) or exporter registration to reflect the merchant exporter status prior to availing the duty free procurement facility.