3) "Merchant Exporter" means a person engaged in trading activity and exporting or intending to export goods .Merchant exporter procures the material from a manufacturer and exports in his firm’s name. Here merchant exporter procures the order from international market. Merchant exporter does not have own manufacturing unit or processing factory. Merchant Exporter can export the excisable goods either directly from the premises of the manufacturer, with or without sealing of the export consignments, or through his premises under claim for rebate or under bond.
FOR YOUR INFORMATION :-
"Manufacturer Exporter" means a person who manufactures goods and exports or intends to export such goods. The manufacturer exporter procures and process raw materials at his factory and exports finished products. Here, the manufacturer exporter procures the export order and exports in their own name. Hope, the above clarifies the difference between manufacturer exporter and merchant exporter.
4)
In deemed exports, goods supplied do not move out of country, and payment for such supplies is received either in Indian Rupees or in free foreign exchange. You may have a doubt now that if the goods are not crossing the border of country, how can we treat as an exports?. In deemed exports, some of the other way the transaction boost to earn foreign exchange . Deemed exporters are also eligible government assistance within the parameters of earning foreign exchange.
Penultimate Export: ****************** As per section 5(3) of CST Act last sales or purchase of goods preceding the sales or purchase occasioning the export of those goods out of territory of India shall also be deemed to be in the course of export, if such last sale or purchase took place after, and was for the purpose of complying with, the arrangement or order for or in relation to such export. Exporting the goods out of India may not be possible for small units, so they may sell their goods to the big export houses. Such indirect exports also need exemption to make the products competitive in the market. That is why the exemption to penultimate export has been given and penultimate export is treated as equivalent to the direct export for the purpose of exemption. Conditions for exemption to penultimate export: As per section 5(3) of CST Act, before claiming exemption for penultimate export, it is necessary that the final exporter should be in possession of export order from the foreign buyer and should take delivery of goods from the penultimate seller solely for the purpose of execution of such export order and should export the same goods. Thus following conditions can be summed up for claiming exemption to penultimate export: 1. The sales must be for the purpose of complying with agreement or order in relation to export, and 2. Such sale is made after the agreement or order in relation to export, and 3. Same goods which are sold in penultimate sale should be exported.
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