Merchant exporter - don't want to expose customer details

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Jordy Joseph

25 Points Posted on 12 November 2016

Hi,

I'm totally new to export and my company (in Bangalore) is NOT registered under Central Excise. Currently we have an order from USA which is not manufacturers by my company. So, I got a manufacturer from MIDC Industrial Area, Mumbai who is into manufacturing the same products. Now here is what I would like to know.

1. How can I export with all benefits to Manufacturer but without exposing my customer details to them?

2. I don't want to bring it to Bangalore and then export, I want to directly export from Mumbai to USA.

3. If the manufacturer can get the Tax benefits (both excise and VAT), is that equal to the benefits if he export directly (Not through trader).

4. What all documents I need to provide to Govt. Depts and the manufacturer?

5. If possible, could you please explain me the entire procedure in a nutshell? Read about ARE-1, Bond etc, not able to understand fully as this is my first export order.

Thanks in Advance. Since the benefits affects the price, I would like to know what's the best options. The manufacturer wants to export directly and pay be commission which I don't want to happen. But if he doesn't get the benefits, it affects the final pricing.

Jordy

Replies (4)

Jordy Joseph

25 Points Posted on 17 November 2016

I was expecting some clues/comments. Hope it's not possible to do the way I mentioned... (Without exposing the customer details to manufacturer exporter and giving all export benefits to him) :-(

R P Ananthakumar

Sr. Officer - Central Excise/Cash

492 Points Posted on 22 November 2016

Dear Mr. Joseph.

It is possible in Central Excise. It is called as 'Merchant Export"

1. You are a Merchant exporter and your supplier is a Manufacturer exporter. You can avail all the export benefit.

2. It is possible you can export the goods directly from your supplier end.

3. Supplier raise invoice without payment of duty against CT-1 and Tax with Form H

4. B-1 Bond, CT-1, ARE-1

Please see notn no. 42/2001 C.E. NT dated 01.06.2009 for further details.

Regards

Ananthakumar R P

Jordy Joseph

25 Points Posted on 23 November 2016

Thanks a lot sir. 2-3 more clarification on this.

1. Manufacturer wants to avail MEIS benefits. Will it be possible for him to claim MEIS benefits, with documents you mentioned to be given to him??

2. Is it possible for me to pay him in USD? Because, Ill be exporter and I'll be receiving my payments in USD.

3. With all these documents, is there anyway, manufacturer can find out who is the final buyer? I don't want him to contact the final buyer in any case.

4. Is there any other benefits possible for him which I can't get as a merchant exporter?

5. Do I need to pay the amount equal to Excise Duty for executing the Bond? Or is it some fee for the bond and I can execute high value bond?? I'm expecting this as a continuous order every month.What's the total amount to be paid for the Bond?

Thanks a lot in advance.

Jordy Joseph

R P Ananthakumar

Sr. Officer - Central Excise/Cash

492 Points Posted on 23 November 2016

1. Manufacturer can avail MEIS benefits, they need your export invoice, BL, SB brc etc.....

2. It is not possible to transfer the amount to your local supplier in foreign currency. If foriegn supplier it is possible. You can check with bank also.

3. Yes. It is possible

4. duty drawback, epcg ....etc....

5. No need to pay amount if you are having star export house certificate or you have to produce BG for 25% fo Bond value.