Export of goods by service provider

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This query is : Resolved

PADMAMOHAN UNIKANDATH (Querist)

07 April 2012 Dear Sir,

As per IEC we are registered as Service Provider(Exporter).

Now we intend to Export some Electrical Testing Equipments to Algeria in connection
with a Work Order awarded to us for testing & commissioning of a Water De-salination plant there.

NOW THE QUERY IS;
1)CAN WE EXPORT THE EQUIPMENTS UNDER OUR IEC ?
(EXPORTER TYPE: SERVICE PROVIDER)
2}CAN WE PROCURE THESE EQUIPMENTS FROM VENDORS WITHOUT PAYMENT OF EXCISE DUTY
BY EXECUTING B1 BOND & OBTAINING CT1 FORM ?

REQUEST YOUR VALUABLE ADVICE.

RGDS,
PADMAMOHAN

PADMAMOHAN UNIKANDATH

PADMAMOHAN UNIKANDATH (Querist)

09 April 2012 AWAIT ADVICE FROM EXPERTS!!! MATTER MOST URGENT !!!

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

24 July 2024 Based on your query regarding exporting electrical testing equipment as a service provider registered under IEC, here are the responses to your questions:

1. **Exporting under IEC as a Service Provider**:
- Yes, you can export goods under your IEC (Import Export Code) registration even if you are registered as a service provider. The IEC is required for any person or entity engaged in importing or exporting goods/services from India. Since you are exporting electrical testing equipment in connection with a work order for testing and commissioning, this falls under the purview of export of goods, which you are permitted to do with your IEC.

2. **Procuring Equipment from Vendors without Payment of Excise Duty**:
- Yes, you can procure these electrical testing equipments from vendors without paying excise duty upfront by following the B1 Bond and CT1 form procedure.
- **B1 Bond**: This bond allows you to procure goods without payment of duty for export purposes. It ensures that if the goods are not exported, the duty will be paid. You need to execute a B1 bond with the Customs authorities.
- **CT1 Form**: After executing the B1 bond, you can obtain a CT1 form from the Customs department. The CT1 form certifies that the goods have been procured without payment of duty and are intended for export.
- Ensure that all procedures related to B1 bond and CT1 form are complied with as per Customs regulations to avoid any penalties or complications.

In conclusion, as a service provider registered under IEC, you are allowed to export goods such as electrical testing equipment. By following the B1 bond and CT1 form process, you can procure these goods from vendors without paying excise duty upfront, provided they are intended for export. Be sure to consult with your Customs authorities for specific procedures and requirements applicable to your export transaction.

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