We are a merchant exporter situated in Bangalore. We purchase Corrugated boxes for packing of goods for exports. We are not registered under Central Excise as we are only merchant exporters. However, we buy agricultural products like Idli Rava, Jaggery, etc., clean it, pack it in consumer packs and finally packed in corrugated boxes, which is then exported out of country. Some of our Corrugated boxes suppliers have informed us that with the recent amendment in Finance Act, 2011, all corrugated boxes are subjected to Excise duty. We being an exporter are not liable for excise duty. However, we have opened a B1 Bond for export of excisable goods without payment of duty. However, the excise officer has informed us that since we are a merchant exporter, we are not liable for duty exemption on purchase of corrugated boxes but only final products under B-1bond/CT-1. Is it true? What is the best alternative to buy corrugated boxes for export by a merchant exporter without payment of Duty?
Regards,
Manjunath
CAclubindia
