NOTIFICATION NO. 43/2001 DT 26.06.2001 PROCEDURE

[RAM SHARMA]

DEAR EXPERTS,

WE ARE REGISTERED AS A MANUFACTURER. CAN WE PURCHASE TRADING GOODS UNDER NOTIFACTION 43/2001 DT. 26.06.2001 WITHOUT PAYMENT OF DUTY AND REMOVE ALONGWITH OUR MANUFACTURING GOODS.

THANKS

[Vijay kumar]

Nofn.43/2001 CE(NT) provides for procurement of excisable goods without payment of duty for use in manufacturing and processing of goods meant for export. Since in your case u want to procure the goods in the course of trading, the said notification does not address your transaction. Bringing in trading goods into registered premises is also not permitted. Hence you may opt for Nofn.42/2001 CE(NT) whereby as a merchant exporter you can procure goods without payment of duty (only from a manufacturer) against CT-1, consolidate them with your goods post-removal from the factory (at the port or outside the factory gate) and then export the same.

AI Summary

Duty exemption for excisable goods applies to manufacturing-for-export only; trading purchases are excluded, use merchant exporter procedure instead. Notification 43/2001 allows duty-free procurement of excisable goods solely for use in manufacturing or processing goods meant for export and does not cover trading transactions; trading goods cannot be brought into a registered manufacturer's premises. Merchant exporters should use the alternative procedure permitting duty-free procurement from a manufacturer against the prescribed transport certificate and consolidate goods after removal from the factory for export.