Exported less quantity than ct1/bond executed

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D/All,

One of my client who is a Merchant exported recently exported one 20ft container. The product is dutiable, hence executed bond (CT1) for removing goods from Manufacturer's Godown to Port. Out of the 1000 Cartons we could only accomodate 900 cartons and the balance 100 cartons returned (Debit note) to the manufacturer. Only submitting ARE1 in proof of the completion of exports to the authority who issued CT1, they asked for the Duty of the balance 100 Cartons. We are exporting the balance quantity in the next consignment scheduled on 15-Oct-2016. Do we have to pay duty? Can we hold Goods upto 6 months? Whats the Central Excise proceudre in those situations?

 

Replies (6)

from the  point of  CT-1 no  issue,  but  from the  point of  ARE-1,  short  shipment, means  goods  sold  on  way,   you  had  to  bring the  goods  back in factory  premises, 

if  the  goods  are lying  in duty  free  zone of  customs  then  immediately  obtain a certificate  from customs that  the  parts of  consignment  covered under ARE-1 ref  are  lying  in  customs  zone, and  awaiting  shipment ,  failing  which  excise  payment  can  not  be  denied. 

To whom should I give letter? From authority issued CT1, Superintendent of Mfg's godown situated or Customs authority where the goods are kept at present?

goods issued 1000 pcs under  cover of ARE-1,  but  only  900  got  exported,  so where  the  balance  100  gone,  if not exported then  duty  is  payable,   thats the  simple logic of  Excise department 

in your ARE-1 ,  customs  has endorsed  paased 900 pcs,  while the  front  page  covers 1000 pcs,  so the  deficit of  100 pcs stays there, under  such  situations ,  usualy  immediately  at the time of  loading the  assesee has to split the ARE-1 in  900+100  under  knowledge of their  juridictinal  R/O, and offer the  900 pcs ARE  for  export, and keep the 100 pcs  ARE-1  pending ( 180 days  time  limit is there for export,  from the date of clearance) 

however the  assesee failed to maintain the procedure,  now if the remaining 100 pcs  are lying  with  customs  then obtain a  certificate  from  customs that part of the  specified  ARE-1 (quantity  100 nos ,value .......) is  lying with them, subject  to  get  loaded with next  consignment, and confirming that  the  goods  are  lying in their custody.

the assesee has  to  communicate  this  certificate to CT-1 issuing authority , VIA  their Range office,   

at the time of  next shipment ( in oct 2016)  a  fresh ARE-1  would  be needed  for  100 pcs,  giving  reference of  old ARE-1 and invoice,  with R/O  endorsement, on the basis of customs certificate  submitted, ..............when the balance 100 pcs would  get  shipped, and ARE-1 is  endorsed by customs, the old  ARE-1 of  1000 pcs would get  mached, which no short shipment  

as the  process is not followed   on the date of  mismatch,  the juridiction of maritime  commissioner  will be helpful  to  steady and allow the  case, because the  assesee premises and customs port both comes under his  juridication. 

Thank you sir.

The party changed the ARE1 and mentioned only 900 cartons. Hence no question of mismatch of quantiy in ARE1. He has obtained CT1/Bond for 1000 cartons. Can we hold it for next shipment?

 

party  changed the  ARE-1 ? is it  in  juridiction of  party ?  as  the  3rd and 4th copy of  ARE1  is  to  be  submitted  to  R/O  at  the time of  clearance,  or  within  24  hrs  of  clearance,

 if  the  same is  maintained, than  CT-1  is partly used and  R/O  will  look the  matter and  issue  the  non  utilization  certificate for remaining quantity. 

Now its clear. Thank you.


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