Export by a manufacturer as merchant exporter.

[NEERAJ KUMAR, RANCHI]

Dear all,

one party (A manufacturer exporter) namely X wishes to export goods as merchant exporter. he wishes to procure goods from various parties , collect them in his factory premises and then get stuffed them in a container. Thereafter wishes to  get it sealed by the central excise officer and then export it. The party X will send  CT-1 to the concerned Range office of the manufacturer. 

Now in this connection the question is

(i) Who will sign the ARE-1, The original manufacturer only or the party X only or both

(ii) What will be the value in ARE-1, the assessable value of the original manufacturer, or the FOB value declared by the party X. 

An early reply please.

Regards

Neraj Kumar 

[YAGAY andSUN]

Already replied.

[SHAHID HASHMI]

ARE-1 will be signed by Merchant Exporter and counter signed by Manufacturer of Goods.

The Assessable value  in ARE-1 will be as per contract with  the Original Manufacturer. Accordingly  amount of duty would be mentioned in CT-1 .

AI Summary

ARE-1 signatures and assessable value: merchant exporter signs, manufacturer countersigns; value follows contractual valuation for export. The ARE-1 must be signed by the merchant exporter and counter signed by the original manufacturer; the value entered in the ARE-1 is the assessable value determined under the contract between the merchant exporter and the manufacturer, and the corresponding duty amount is to be stated in the CT-1 submitted to the Range office.