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Export by merchant exporter (Custom)

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This query is : Resolved


( Author )
23 February 2012

CAN A MERCHANT EXPORTER TAKE THE BENEFIT OF EPCG SCHEME AS A FULLFILLMENT OF EXPORT OBLIGATION IF THE MANUFACTURER EXPORTER (SUPPORTING MANUFACTURER)IS ALSO THE EPCG AUTHORIZATION HOLDER ?

SUPPOSE XYZ (LUDHIANA) IS A MAUNFACTURER EXPORTER AND ALSO A EPCG AUTHORIZATION HOLDER

ABC (DELHI) IS A MERCHANT EXPORTER AND ALSO A EPCG AUTHOIRIZATION HOLDER

IF XYZ SALES OF GOODS TO ABC AS A MERCHANT EXPORT, THEN IT WILL BE THE MERCHANT EXPORT BY XYZ AND EXPORT OF GOODS BY ABC WILL BE DIRECT EXPORT UNDER THIRD PARTY EXPORT.
IN THIS CASE CAN BOTH COMPANIES XYZ AND ABC TAKE BENEFIT AS FULLFILLMENT OF EXPORT OBLIGATION UNDER EPCG SCHEME BY EXPORT THEM ?
OR EXPORT OBLIGATION WILL BE FULFILLED ONLY MANUFACTURER EXPORTER AND NOT THE MERCHANT EXPORTER ?


RAMESH KUMAR VERMA

( Expert )
23 February 2012

as per current F.T.P.para 5.7.1 :

" EPCG authorization holder shall export either directly or through third party (s). If a merchant exporter is EPCG authorization holder, name of supporting manufacturer shall also be indicated on shipping bills. At the time of export, EPCG authorization No. and date shall be endorsed on shipping bills which are proposed to be presented towards discharge of export obligation."

Regards,



Mandeep Kumar

( Author )
23 February 2012

DEAR SIR, I HAVE ALSO READ 5.7.1 OF FTP AND I AM ALSO AGREE WITH YOU. BUT SIR THIS WAS NOT MY QUERY, MY QUERY IS THAT CAN MANUFACTURER EXPORTER (SUPPORTING MANUFACTURER) AND MERCHANT EXPORTER DISCHARGE THEIR EXPORT OBLIGATION AGINST A SINGLE EXPORT BILL ?

FOR EXAMPLE
X IS A MANUFACTURER EXPORTER AND ALSO A EPCG HOLDER
Y IS A MERCHANT EXPORTER AND ALSO A EPCG HOLDER
IF X SALE TO Y AS A MERCHANT EXPORT, AND Y DO DIRECT EXPORT OF THAT GOODS WHICH WAS RECEIVED BY HIM (FROM X AS A MERCHANT EXPORT) THEN WHO CAN TAKE THE BENEFIT OF DISCHARGE OF EXPORT OBLIGATION ON THAT SALE.


RAMESH KUMAR VERMA

( Expert )
23 February 2012

if "y" is NOT in SEZ or in100% EOU unit, then one (either manufacturer exporter or merchant exporter) can avail the benefit.

Regards,


Mandeep Kumar

( Author )
24 February 2012

NO SIR, Y IS NEITHER SEZ NOR 100% EOU


RAMESH KUMAR VERMA

( Expert )
24 February 2012

if "y" is NOT in SEZ or in100% EOU unit, then one (either manufacturer exporter or merchant exporter) can avail the benefit.

Regards,


Mandeep Kumar

( Author )
24 February 2012

AND SECONDLY IN CASE OF MERCHANT EXPORT WHO IS (MANUFACTURER EXPORTER OR MERCHANT EXPORTER ) RESPONSIBLE FOR THE SIGNATURE ON THE ARE-1 FORM AND WHOSE NAME (MANUFACTURER EXPORTER OR MERCHANT EXPORTER)SHOULD BE MENTION ON THE ARE-1 FORM IN THE PLACE OF 1/WE..............OF....PROPOSE TO EXPORT THE UNDER MENTION CONSIGNMENT TO ................COUNTRY OF DESTINATION BY ROD/SEA/LAND/AIR


RAMESH KUMAR VERMA

( Expert )
24 February 2012

if merchant exporter wanted to avail benefit , will be declare the E.O. at the time of redemption.

are-1 sign by if merchant is registered in excise ..


Mandeep Kumar

( Author )
24 February 2012

SIR MY QUERY IS THAT WHOSE NAME (MANUFACTURER EXPORTER OR MERCHANT EXPORTER) WOULD BE MENTION IN THE ARE- FORM IN CASE OF MERCHANT EXPORT ?

XYZ IS MANUFACTURER EXPORTER AND ALSO REGISTERED IN EXCISE

ABC IS MERCHANT EXPORTER AND ALSO REGISTERED IN EXCISE

IN THAT CASE WHO (XYZ OR ABC )WILL SIGN THE ARE-1 FORM ?

AND WHOSE NAME (XYZ OR ABC)SHOULD BE ON THE ARE-1 FORM IN THAT BELOW MENTION PLACE OF ARE-1 FORM

1/WE ABC OR XYZ OF....PROPOSE TO EXPORT THE UNDER MENTION CONSIGNMENT TO ................COUNTRY OF DESTINATION BY ROD/SEA/LAND/AIR


RAMESH KUMAR VERMA

( Expert )
24 February 2012

if merchant exporter wanted to avail benefit , will be declare the E.O. at the time of redemption.

in this case,are-1 sign by merchant exporter & a undertaking / declaration by manufacturer exporter that he will not taken any benefit i.e. cenvat taking and EPCG redemption benefit.

for more information u can put up the RTI with the EXCISE DEPARTMENT.

REGARDS,



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