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EXPORT TO NEPAL AS TRADER

Guru Prasad Singh (MANAGER-EXPORT) (25 Points)

28 July 2009

Dear Sir,

As trader if we are exporting goods(SMF/VRLA Batteries) to NEPAL via road transport ,

1)what is the procedure?

2)Do we are eligible to get benifit of excise duty?what type of form we need to attach for it?

regards

Guru

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9 Replies

sanjoy (chd) (30 Points)
Replied 28 July 2009

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 29 July 2009

Export to Nepal is to be done after payment of duty, if payment is received in Indian rupees. Such export is to be made on Nepal Invoice, after payment of duty where Government of Nepal gets the rebate of excise duty.

It is possible to send goods without payment of duty if payment is received in hard foreign exchange.

CA.Aakhilesh (C.A. ) (403 Points)
Replied 29 July 2009

under excise act 1944, duties levied whn goods are removed from the factory.............n above case duty is leviable under export :- export to nepal and bhutan are not call export so duty is leviable.

Rajesh Kumar (Advocate- Tax) (7806 Points)
Replied 29 July 2009

Akhi is right, in general. However, if the payment ia received in convertible foreign exchange or supply is against specified global tender, goods can be exported without payment of duty as per notification 45/2001 (NT) dated 26.06.2001. Further such export can also be made by merchant exporter (trader as the querist say) as explained in CBEC circular 810/7/2005 dated 01.03.2005.

P.Bashista (Advocate) (367 Points)
Replied 30 July 2009

India has Rupee transaction with Bhutan and Nepal. So incentives are not available if goods are exported to these countries. The rebate is given to the Government of Nepal and not to the exporter.

Detailed procedure for export to Nepal and Bhutan is prescribed in Para 4 of Notification No. 20/2004-CE(NT) dated 06-09-2004, supplemented in chapter 8 Pat II of Central Excise manual.

But if the payment is received in foreign exchange then the export can be made without payment of Duty and the detailed procedure and the conditions are given under Notification No.45/2001-CE(NT) dated 26.06.2001 and it is further elaborated in Chapter 7 Part IV of the Manual.

John Philip (Trade Consultant) (47 Points)
Replied 08 September 2009

Customs allow the trader to export without payment of excise duty.and you can claim the duty drawback,DEPB as export benefit

gijo thomas (commecial officer) (30 Points)
Replied 21 September 2009

Dear Sir,

We are Govt. undertaking group, in Csez, cochin, wish to export some Gloves consignment, purchased from other Csez unit cochin, way of mode is road transport.

is ARE- 1 OR 2 is mandatory...?? or only nepal invoice, is this need to sign by central excise authorities..?