We are manufacturer of packing material. We got an order from USA and on his instructions we send the packing material to a person who manufactures handicraft.Handicraft manufacturer export the handicraft in our packing boxes.In his Bill of entry he only mentions his goods ie handicrafts
Problem: Our packing material are actually exported but we have no proof of export. Since, handicraft is duty free goods and handicraft manufacturer is not registered in excise and hence can not issue any form in this regard.
As a proof of export we have only Form-H which is issued by handicraft manufacturer and receipt in US dollar..
Kindly suggest how can we get the credit of excise duty paid on manufacture of packing material and other export benfits
In my viwe there are the follwoing two ways for your problem of excise duty refund :
1) You charge the excise duty in the bill raised by you for packing material/cartoons and recover the excise duty from the Handicraft manufacturer
2)The handicraft exporter purchases Packing material/cartoons from you he is merchant exporter for the cartoons he may exucute and follow procedures for Form CT-1 procedures under which excise duty proof of export under ARE1 can be on hands.
1.Since Handicraft is not excisable goods and manufacturer is not registered with excise department. So, we can not charge and recover excise duty.
2. Handicraft exporter is not purchasing goods from us. we got the order from US and send the cartoons to Handicraft manufacturer on his (US) instructions, where handicraft manufacturer packed the goods in our cartoons and sent the goods to US.
3. Since Handicraft manufacturer does not purchase goods from us, so he does not mention anything about cartoons in bill of entry
Problem: Our cartoons are actually been exported but we are not getting any benefits of same, since we do not have any proof of export
Tell me how you do you receive export realisation from the USA party from whom you receive order from packing material to suuply to the handicraft exporter. Beause in your transaction i donot see that the 4 corners of a Square does march which otherwise should be in a trasaction.
you receive order from UAS for supply of packing materials to the handicraft manufacturer,you receive Form H from the Handicraft manufacturer ( which means there is asale between you and handicraft manufacturer)if so then how can you sale there is no sale between you both?
28 February 2014
Dear Sir, We receive US$ from our client. We do not sell goods to Handicraft manufacturer, but he issues us Form H so that he can get sales tax exemption and so do we.
CAclubindia
