Excise registration for import

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Murali

Purchase

33 Points Posted on 20 August 2013

We are a startup Electronics manufacturing unit , producing products for local consumption. We expect the the turn over less than INR 70 lakhs for first year of operation. We have a IEC code importing. We have the following queries?

1. We would like to know whether the registration of Excise is mandatory for import? Kindly clarify.

2. Do we require to register our IEC to customs - Is there anything like customs registration?

Regards,

Murali

Replies (2)

Arun Kumar Singh

GST Advocate

15220 Points Posted on 20 August 2013

Excise registration is not required for import of goods.

Rajath

Director

21 Points Posted on 03 September 2013

Dear Arun Kumar Singh,

Thank you for your clarification. I would also like to know if there are any benefits for a start up electronics manufacturing unit with constrained investment capital to register under Central excise.

Say for instance can we obtain input credit on customs duties paid for imports which are input capital goods for the finished equipment that we manufacture?

If the answer to the above question is a yes, then my firm is already registered under VAT/CST. I understand that once we register under Central Excise (Our turnover right now is less than 10 lakhs) we will be liable to pay central excise duty as well which may reduce our competitiveness due to final product cost escalation. At the same time we may obtain input credit on certain imported raw materials.

Do the benefits of registering under Central excise far outweigh the costs or is it vice versa in my case.

Please advice.

Thanks and Regards.