Sunil Kumar G

Sunil Kumar GBrief Summary: Notification No. 19/2004 –CE (NT) dated 6.09.2004 prescribes the conditions and procedure relating to export under claim of rebate. This notification is applicable for Manufacturer exporter as well as Merchant exporter. A Merchant Exporter can export with payment of duty and can claim rebate on duty paid on export of goods under this notification.

Introduction

“Merchant Exporter” means a person engaged in trading activity and exporting or intending to export goods. Merchant Exporter can export the excisable goods either directly from the premises of the manufacturer, with or without sealing of the export consignments, or through his premises under claim for rebate or under bond.

Where exports are by Merchant Exporter, a Disclaimer Certificate in favour of the Exporter should be taken on each copy of ARE-1. According to the Circular 508/04/2000-CX dated 14/01/2000, it is clarified that “there is no bar on the merchant exporters to file rebate claim and with the Assistant Deputy Commissioner (Divisional Officer) having jurisdiction over the factory of manufacture of said goods and receive the rebate, provided the manufacturer gives the ‘disclaimer’ certificate. The AR-4 (ARE-1/ARE-2) should be generated in the factory of said goods and duly signed both by the manufacturer and the merchant-exporter.” The Merchant exporter can claim rebate under Notification No. 19/2004.

 Presentation of claim for rebate to Central Excise

(i) Claim of the rebate of duty paid on all excisable goods shall be lodged along with original copy of the application (in duplicate) to the Assistant/Deputy Commissioner of Central Excise having jurisdiction over the factory of manufacture or warehouse or, as the case may be, the Maritime Commissioner;

(ii) The Assistant/Deputy Commissioner of Central Excise having jurisdiction over the factory of manufacture or warehouse or, as the case may be, Maritime Commissioner of Central Excise shall compare the duplicate copy of application received from the officer of customs with the original copy received from the exporter and with the triplicate copy received from the Central Excise Officer and if satisfied that the claim is in order, he shall sanction the rebate either in whole or in part.

(iii) Documentation: List of documents required to be filed with rebate claim

1)    A request on the letterhead of the exporter containing claim of rebate, ARE-1 numbers and dates, corresponding invoice numbers and dates, amount of rebate on each ARE-1 and its calculations.

2)    Form C (annexure B)

3)    Original copy of ARE-1.

4)    Invoice issued under Rule 11 of CER, 2002

5)    Self attested copy of Shipping Bill (EP copy) and Bill of lading/ Airway Bill.

6)    Proof of duty payment.

7)    Disclaimer certificate from the manufacturer

8)    Bank Realisation Certificate  (Optional)

9)    Mate Receipt (optional)

10)       Any other document in support of the refund claim.

Conditions and limitations

(a) that the excisable goods shall be exported after payment of duty, directly from a factory or warehouse,

 (b) the excisable goods shall be exported within six months from the date on which they were cleared for export,

 (c) that the market price of the excisable goods at the time of exportation is not less than the amount of rebate of duty claimed;

(d) that the amount of rebate of duty admissible is not less than five hundred rupees;

(e) that the rebate of duty paid on those excisable goods, export of which is prohibited under any law for the time being in force, shall not be made.

 (xvi)    The exporter shall use the quadruplicate copy for the purposes of claiming any other export incentive.

Duty Drawback of duty paid goods procured from Market and Export

Notification No. 19/2004 is applicable only for those merchant exporter exported goods directly from the premises of the manufacturer or warehouse of the manufacturer with payment of duty. Thus merchant exporters who purchase goods from the local market for export shall be entitled to full rate of duty drawback (including the excise portion). However, such merchant exporters shall have to declare at the time of export, the name and address of the trader from whom they have purchased the goods. They shall also have to declare that no rebate (input rebate and also the final product rebate) shall be taken against the Shipping bills under which they are exporting the goods. The merchant exporters who purchase goods from traders may therefore furnish the declaration, at the time of export, in the format as mentioned below  (The Circular No. 16/2009- Customs  is issued in supersession of para (vi) of Circular No. 64/98-Cus dated 01.09.1998.)

Declaration to be submitted by merchant exporters who purchase goods from traders for export

1. Shipping bill no. and date

2. Description of goods

3. Export Invoice no. and date

4. Name and complete address of the trader from whom export goods have been purchased.

Declaration

I, ______________________________ _________________________, hereby declare that I am not the manufacturer of the export goods and am not registered with central excise. I have purchased these goods from a trader who is also not registered with the central excise. I declare that no rebate (input rebate or/and final product rebate) shall be taken against the export (s) made against this shipping bill.

Merchant exporter’s signature and seal

The claim for rebate should be filed the time limit stipulated under Section 11B of the Central Excise Act, 1944

More Under Excise Duty

Posted Under

Category : Excise Duty (4106)
Type : Articles (16256)

26 responses to “Rebate of Duty Paid By Merchant Exporter”

  1. K Purushothaman says:

    is a merchant exporter having IGST registration in New Delhi where he is having office only and exporting goods from a manufacturer in another State, material container stuffed at the factory with sgs inspection seal, need a separate IGST registrations there? Or he can export the goods under manufaturer’s IGST number without paying taxes?

  2. Laxman. mangtani says:

    I am merchant Exporter in Mumbai Maharashtra I had purchased goods from Gujarati for exports under ARE & H form can I export goods on 4 July as usual or is their will be problem for my company / or any tax liablty. Please send me replay

  3. RADHA says:

    dear sir,
    we are merchant exporter, we have done our 1st shipment and paid the exercise duty, how can we claim rebate on exercise duty without ARE-1 form .we have form c,shipping bill original,exercise invoice no .please guide me how to obtain rebate on exercise duty and time period .
    Thanks and regards,
    R.Radha

  4. RADHA says:

    dear sir,
    we started our merchant export firm this year.during our 1st shipment which we made on march 2017 ,we paid exercise duty and we have shipping bill original,exercise invoice and form c but we don’t have ARE-1 FORM HOW CAN WE APPLY FOR CLAIMING REBATE ON EXERCISE DUTY?

  5. MANOJ MISHRA says:

    Hello Sir,

    We are a merchant exporter of Industrial Chemicals. We are buying chemicals directly from the manufacturer in India under ARE-1/CT-1 (for Central Excise) & Form “H” (for Sales). Can we claim Duty Drawback against our Export ?

    Regds

    Manoj Mishra

  6. umesh joshi says:

    Sir, we are registered dealer with excise. We had procured, from manufacturer, a product for local sale therefore procured it by paying duty on it (charged in the purchase bill). Later the same was exported. Is there any procedure to claim refund of duty levied by the manufacturer?

  7. KAPIL says:

    Sir,I want to know that we have some export under claim for rebate and filled the refund within one year but i have not received BRC. so i want to know that the time limit of submit of BRS. please tell me.

  8. Saurabh says:

    Dear Sir,

    We are exporting material from Himachal Pradesh India to USA, for that we need to issue ARE 1 Form of excise department. We are using Four difference colour copy of the same purchased from market. Mine qtn is Can we use computer generated ARE1 for the same which is available in excel & word format. Is than also colour coding necessary to maintain ?????

  9. PrakashJethva says:

    Dear Sunilkumar G and any other Experts pl. guide in this my problem which is as under:
    We are merchant exporter having IEC and we are also registered at Excise as Importer.
    We have received purchase order from Thailand of some product. we have purchased that product from local manufacturer on payment of excise duty. Then after exported it to Thailand. Now can we claim for excise duty which is already paid to manufacturer after exporting the same. As per my logic as we have purchased the material on payment of Excise Duty and as already exported then we can claim it with excise dept.
    Pl. guide me Can we claim for excise duty, if yes then as rebate or refund or drawback. Pl reply.

  10. shilpa says:

    sir can you list the parties who can claim refund and is the procedure same for all?
    kindly reply as preparing for exams asap

  11. Shivakumar M says:

    We are trying to export machines to one of the African countries.
    We are trying to execute a bond with Excise Department as Merchant Exporters.
    However the excise officials are not sure of the procedure and are asking for a Bank Guarantee for the amount specified.

    Can anybody throw light on this?
    Shivakumar M

  12. RAJ says:

    WE ARE MERCHANT EXPORTER IF CAN CLAIM OF DUTY DRAW BACK FROM CUSTOMS, IF THE SUPPORTING MANUFACTURER IS CLAIMING REFUND OF CENVAT CREDIT FROM CENTRAL EXCISE.

    PLEASE REPLY

  13. deepak kumar jindal says:

    hello
    sir
    if we have a exice registration number for dealer my company has give me bill with exice duty my question is this on behaf of company dealer can i claim the exice duty from buyer or not why ?????

  14. B.M.Goel says:

    Dear Sir,
    We have purchased two types of material, one of which we purchased from a manufacturer who provide us ARE-1 from, and other manufacturer could not provide us ARE-1 form and had charged the excise duty on his bill.We have exported both the materials to one party and have shipping bill etc. pl tell us how we can get the Excise Duty Paid to second Party, I shall be highly thank full if replied earlier.
    Thanking you
    B.M.Goel

  15. satish says:

    sir,
    I am merchant exporter and not registered with central excise .
    I AM HAVING BOREHOLE DRILLING RIG EXPORT ORDER .I would like to buy the1) new truck and 2)new compressor ,3) hydraulic items 4) steel from different state manufactures and traders after paying necessary excise duty and central sales tax or vat .ONE OF THE FABRICATER (NOT REGISTERED WITH CENTRAL EXCISE )WILL FABRICATE BORE HOLE DRILLING RIG (ENTIRELY DIFFERENT HS CODE ).HOW CAN I CLAIM THE EXCISE DUTY AND SALES TAX BEING PAID ? (I DO NOT HAVE ANY LOCAL SALES AND IN THIS CASE WE DO MODIFICATION OF TRUCK RIGHT HAND TO LEFT HAND DRIVE ,CABIN BUILDING ,CONSTRUCT MUST AND TAKE PTO DRIVE FROM GEAR BOX IN TRUCK … )

  16. Vk says:

    Sir,
    if a manufacturer exported goods to SEZ unit under Duty Drawback claim on jul 2013 and obtain disclaimer certificate on Aug.2014. after that filled a DBK Claim with Jurisdictional central and Customs office. but drawback claim was rejected on the basis of Circular No. 12/96- Cus. dated 16/2/96. is this circular is applicable in case of drawback claims for SEZ supply from DTA.
    Thanks & warm Regards.

  17. Ramesh says:

    Dear Sir,

    We are merchant exporter(dealer),now my query is where we show disclaimer certificate on ARE-1 and what is the wording of that certificate and regarding sign by both manufacturer and merchant exporter,my query is where both signed as ARE-1 format is standred.

    waiting for your valuable reply

  18. rakesh soni says:

    hello sir,
    we are manufacture and registered under central excise act and export material as manfacturer.in the same premises we get registration as trading activity procure material from our other unit at oriissa for home clearwence , now we wanted to clear material(as export) procured under trading registration. this is possible ?
    thanks $ regards.
    RAKESH SONI

  19. Vasu Joshi says:

    Dear Sir,

    We are exporter & registration with central excise, but our product is not exciseable & we are purchased the excisable goods for another party(Manufacturer) we want the declaration format from manufacturer.

  20. Anshul Mehra says:

    Whether a merchant exporter who purchase jute bags(excise paid) and export rice i.e uses bags as packing material,can he avail excise rebate

  21. k.s.chanddrashekaraiah says:

    Sir,
    We are manufacturer and registered under Central Excise Act. We are having one Merchant Exporter. We manufacture for him and he exports. We prepare ARE! and commercial invoice in INR on Merchant exporter. In ARE1 we will mention to whom we are exporting and in bracket we will mention name of the Merchant Export. All our ARE1 raised on behalf of Merchant Exporter are duty paid. Will you please help us how to file application for claiming duty drawback. and what are the documents are to be filed.
    regards
    k.s.chandrasheakr

  22. Bharat K Brahmbhatt says:

    Sir,

    I am a merchant exporter, I always file a rebate claim regularly and get the rebate claim from the excise division office. But my question is that, I purchase the material for intending to export from registered dealer. then I want to know
    that can I get the rebate claim ? How I file the rebate claim ? what is the procedure for the rebate claim ?

  23. Mufaddal Kothari says:

    Dear Sir,

    I Require format of Form C (Annexure B) for Presentation of claim for rebate to Central Excise.

    Best regards,

    Mufaddal

  24. Latha says:

    sir, where will i get form C (annexure B)
    Thanks & Regards,
    Latha

  25. Sunil Kumar says:

    The Merchant exporter should file rebate claim to the jurisdictional Assistant/deputy commissioner of Central Excise in which factory is situated.

    Thanks and regards

    Sunil Kumar

  26. Suneel Sonawane says:

    Hello Sir,
    Recently, one of our customer filed refund claim for export made from our premises which was rejected on the basis that he should file refund claim with the Asst Commissioner of Excise of factory jursdiction. Above information is very much helpful to file the refund claim.

    Thanks & warm Regards.
    Suneel Sonawane

Leave a Reply

Your email address will not be published. Required fields are marked *