We are exporting under CT-1 Bond through merchant export, our excise department is asking proof of export documents under CT-1 endorsed by Customs officer and BRC, Bill of Lading, packing list, invoice
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Whoever had executed the B-1 General Bond will be liable to submit the proof of export. Further, the other party can submit the acnowledged copy (photcopy) of the proof of export to the concerned authority.
The central excise department is correct. Since u have removed ur excisable goods from ur factory without payment of duty for export, you must have exported under bond, so as per provision you have to make sure that these goods are exported with in six months of removal from the factory and thats why the deptt is asking for proof of export, so what is the problem in submitting proof of export.
Before I proceed for a reply, I am confirming following things.
- You are a manufacturer registered with Central Excise
- You have exported through a merchant exporter whereby he has given a copy of CT-1 to you (in orignal)
- The export must have been made under ARE-1 or ARE-2 whereby the fact that it is under CT-1 has been mentioned.
In the aforesaid cases, where the goods has been removed under a cover of CT-1 which has been taken by executing Bond B-1, the duty liability will be that of Merchant Exporter [Chapter 7:- CBEC Manual]
Its true that whoever executing the bond, is liable to discharge the duty liability in case of failure to comply the conditions notified therein.
The Excise Department of Manufacturer's Jurisdiction cannt insit the manufacturer to provide the Proof of Export, when the export is done through Merchant Export
You may ask the Excise Department to confirm them from the Merchant Exporters Jurisdiction. This is normally followed by the Deaprtment.
I do confirm the views/replies and inputs of all experts on your query regarding submission of proof of export for goods procured by Merchant Exporter under CT-1.
In my practice the executer of bond is always responsible for the proof of export. the above quarry is that, the department asking proof of export from manufacturer of such goods which exported through merchant exporter. here is 100% liability to produce the proof of of export to merchant exporter end, not any single percent to the manufacturer of such goods. once a manufacturer received a CT-1 form, the CT-1 form is prima-facie document to relase the goods without payment of duty under ARE-1 including excise bill. yes, if department asking for proof of export certificaate, which issued to the merchant exporter after his submission of proof of export, then manufacturer provide him a photocopy of certificate of proof of export. thanks
GOODS REMOVED UNDER CT-1, CT3, AND ARE-1, ARE, 2, ARE-3, THAN AFTER PROOF OF EXPORTS IS NOT REQUIRED TO THE MANUFACTURER, BECAUSE ARE-1, AND ARE2, ARE-3 IS ALREADY ENDROSED BY THE CUSTOM DEPT AT THE TIME OF SHIPMENT-EXPORTS.
WE HAVE NAVER GIVE ANY PROFF OF EXPORTS TO CENT EXCISE- AND WE HAVE CLOSED OUR ALL ADV. LIC WHICH IS WE HAVE SUPPLIED TO MARCHANT EXPORTER- MANUFACTURER AGAINST CT-1, CT-3-- TILL WE HAVE NOT FACE ANY PROBLEM.
Just Submit ARE-1/ARE-2 to your Excise Department Range as per Annex. 19. It is the proof of Export and also Keep 1 Copy With you as Proof of Export.
Agreed that endorsed copy of ARE - 1 is a proof of export but department can surely always ask for further various documents such as Bill of Lading, packing list, invoice copy , etc. in the matter.
The correct way is to submit photocopy of the proof of export received by the Merchant Exporter from the Bond sanctioning authority or acknowledged copy for submission of documents for purpose of proof of export by the merchant exporters, as already explained by Pradeep Sir earlier.
If you clear exciseable goods without payment of duty under CT.1/CT.3, it is the responsibility of merchant exporter to produce proof of export to the bond accepting authority. The manufacturer of exciseable goods is not liable to submit proof of export.
For closure of CT-1 the merchant Exporter has to submit the POE documents such as Customs endoresed ARE-1, S.B and Bill of Lading or AWB copy (Self certified), BRC is not mandatory. On submission of the said documents only Bond Liability will be discharged. Triplicate copy of the ARE-1 was duly endorsed by the manufacturer Excise Range office that too submitted along with other forms. (Some times the Exporter Range officer will send the Triplicate copy of the ARE-1 directly to the Bond officer)
MERCHANT EXPORTER HAVE TO SUBMIT P O E DOC. FOR CANCELED OF LUT-BOND AS UNDER ANY ONE OF BELLOW
1- ARE 1, ARE 3 WHICH IS ENDORSED BY CUSTOMS ON BACK SIDE
ANY ONE OF BELLOW
2- B/L COPY--- ( TO BE SILENT BUYERS-CONSIGNEE NAME removed from b/l )
3- M. RECEIPT OR E.P. COPY.
FOR MANUFACTURER-- FOR CLOSING OF ADV. LIC-
ARE 1/ ARE 3 ENDORSED BY THE CENTRAL EXCISE and CUSTOMS-- WITH PERTICULARS OF ADVANCE LICENCE DETAILS- MERCHANT EXPORTER IEC OCDE- NAME - AND PRODUCTS COMPLETE DETAILS AS PER ADV. LIC.
BANK PAYMENT - BRC FOR LOCAL PAYMENTS INDIAN RUPPEE RECEIVED MERCHANT EXPORTER
Dear Suresh babu,
please ask your superintendent to write letter to CT-1 issuing authority to confirm that merchant exporter has filed proof of export or not, he may ask for photo copy for their internal communication. as per my view you need not provide any of above documents as proof of export. CT-1 issuing authority will take care for POE. from Merchant exporter.