Export : EOU through Merchant Exporter

Save Share

This query is : Resolved

AN Sharma (Querist)

17 May 2010 If an EOU exports goods through Merchant Exporter then what would be the benefit to
EOU and how would the Merchant exporter Benefit?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

21 May 2010 MR . A. N. SHARMA JI,

AS PER PARA 6.11 OF FOREIGN TRADE POLICY2009-2014,
SUPPLIES FROM DTA TO EOU / EHTP/STP/BTP/ UNITS WILL BE REGARDED AS "DEEMED EXPORTS" AND DTA SUPPLIER SHALL BE ELGIBLE FOR RELEVANT ENTITLEMENTS UNDER CHAPTER-8 OF FOREIGN TRADE POLICY, BESIDES DISCHARGE OF EXPORT OBLIGATION.
2. CENVAT CREDIT .
3. REIMBURSEMENT OF CENTRAL SALES TAX ,
4. EXEMPTION FROM CENTRAL EXCISE DUTY ,
5. CENVAT CERDIT FROM SERVICE TAX.

AS PER PARA"6.15
IN CASE ANY EOU / EHTP/STP/BTP UNIT IS UNABLE TO UTILISE GOODS AND SERVICES , IMPORTED OR PROCURED FROM DTA , IT MAY BE:
(1) TRANSFER TO ANOTHER EOU/EHTP/STP/BTP UNIT OR
(II) DISPOSED OFF IN DTA WITH APPROVAL OF CUSTOM S AUTHORITIES ON PAYMENT OF APPLICABLE DUTIES AND SUBMISSION OF IMPORT AUTHORISATION,
(III) EXPORTED , SUCH TRANSFER FROM EOU EHTP/STP/BTP UNIT TO ANOTHER UNIT WOULD BE TREATED AS IMPORT OF RECEIVING UNIT.

IN VIEW OF ABOVE, MERCHANT EXPORTER IS THIRD PARTY, AND CONSIGNEE WILL BE EXPORTER AND MERCHANT EXPORTER WILL INDICATE HIS NAME ON SHIPPING BILL AND AVAIL DEPB, DBK,AND CHAPTER-3 SCHEME .

EOU UNIT WILL SUBMIT A DECLARATION FOR NOT TAKING ANY BENEFIT.

DRAWBACK ALSO AVAILABLE FOR MERCHANT EXPORTER.

EOU ONLY AVAIL BENEFIT OF NET FOREIGN EXCHANGE.

THX

AN Sharma

AN Sharma (Querist)

21 May 2010 EOU is the Manufacturer of the goods. Merchant exporter is the exporter.
Container is sealed in EOU premises.
Consignee is abroad.
ARE-1
Both will sign the ARE-1

Procedure:
1.Invoice and Packing List: Merchant Exporter: Addition of Manufacturer Exporter, Consignee Abroad.
2.GSP Merchant Exporter
3.BL
Shipper
Merchant Exporter
Consignee
TO Order

Notify Party
Foreign Destination

Manufacturer Exporter (100% EOU),

Payment to EOU in INR
Therefore Who will Benefit?

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

21 May 2010 SIR,
PLEASE GO TO THE FOLLOWING PATH:

https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=183&Mode=0

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now