Goverment foramality for Merchant export

[Asked by Guest]

Dear Sir,

hope you are good and doing well.

we are newly company in terms of Merchant exports from India.

My question Can you tell me that what are the government formality i need to follow as merchant exporter.

I mean should i have to register with CST, VAT, Excise Authority etc. As we only do Export the material from India.

please advise me.

thanks Rakesh

[YAGAY and SUN]

You need to get the Importer Exporter Code from DGFT, BIN from Customs (this will be generated by default), RCMC from Export Promotion Councils, VAT/CST/Entry Tax Registration, Registration with Central Excise Department if required, Registration with Service Tax Department for getting the service tax refunds, Registration with Bank on the Ports for duty drawback etc.

[DEEPAK SHARMA]

Being a Merchant Exporter you need IEC code from DGFT and Registration Cum Membership Certificate from Export Promotion Counsel, and also VAT and CST registration (Because you will procure goods on H Form base) service tax if you are falling under the ambit. be remember this is for only merchant exporter.   

thanks for your below reply.

One more thing if i export the goods without giving CT-1 Bond. Will my manufacturer get any trouble?

As i will give them Form H.

thanks

[YAGAY and SUN]

In this scenario central excise duty would be payable by your supplier and it would be recovered from you.

thanks Sir,

but i go to the Central Excise department.

they told me that Central Excise is not mandatory if you export the goods from India as Merchant export.

No need to get the CT-1  bond.

can advise me in this case?

thanks

[Shrikant Joshi]

First of all Export dose not attract Excise Duty. But you want to remove material on payment of Excise Duty then you can get Refund of Duty thru Duty Draw Back.

For Merchant Export you need to

1)      Furnish B-1 Bond.  Which is revolving Bond i.e. when clearing goods Debit amount of Excise duty  and credit after submitting prof of export

2)      Gate Sign of Excise Suptd. on CT-1

3)      Prepare ARE-1 with the details of Excise Duty

4)      You can remove material on Self Removal Basis or from Excise Suptd.

5)      After completion of Export you should submit prof of export with in six month to excise dept.

6)      Manufacturer can remove without payment of duty on the basis of CT-1

7)      Manufacturer should submit pink copy to his Rage Office this Pink copy will hand over to exporter on prof of export.

Regards,

AI Summary

Merchant export formalities require IEC and tax registrations to enable bonded removal and post-export duty refunds.
Merchant exporters must secure an Importer Exporter Code and RCMC, obtain VAT/CST registration and any applicable service tax registration, and register with port banks and customs for BIN. For duty treatment, bonded removal documentation (CT-1 or revolving B-1 bond), ARE-1 preparation, gate signatures, and submission of proof of export within the prescribed period are required to defer excise duty and claim duty drawback; absent CT-1/B-1 the manufacturer may be liable to pay excise duty recoverable from the exporter.