Procedure for direct supply by intermediate supplier to the port for export by ultimate supplier – CBEC Clarifies
As per DGFT Public Notice No. 151 (RE-2008)/2004-09 dated 26th February, 2009, intermediate supplier can also supply the product(s) directly to the port for export by the ultimate exporter (holder of Advance Authorisation or DFIA ). In such cases, shipping bill shall be in the name of the ultimate exporter with the name of intermediate supplier endorsed on it.
But any DGFT benefit can be implemented only when CBEC decides to do so. And the CBEC has NOW decided to do it.
The CBEC Circular stipulates that
1. The intermediate manufacturer as prescribed in para 4.13 of the FTP, 2004-09 can also remove goods to the port of export without payment of duty under bond. [Are we still bonded?]
2. In such cases, the goods should be verified and sealed in the presence of central excise officers, and ARE-1 prepared in this regard should be countersigned by central excise officers.
3. The ARE-1 shall also show the name and address of ultimate exporter, and the details of permission/ invalidation letter issued by licensing authority.
4. The description, quantity, value, technical specifications, etc., mentioned in the permission / invalidation letter shall be verified by the central excise officer with respect to the goods supplied by the said intermediate supplier.
5. The Shipping Bill should be prepared in the name of the ultimate exporter with the name of intermediate supplier endorsed on it.
6. However, the reference of ARE-1 of the intermediate manufacturer and permission/invalidation letter issued in favour of intermediate manufacturer should also be mentioned in such a Shipping Bill.
7. The procedure relating to proof of export as given in Chapter 7 of CBEC's Central Excise Manual shall be followed for such exports.
But what has been happening between February and July?
The CBEC and the DGFT should appoint ambassadors in each other's office and ensure that both of them speak with one voice and at the same time. The DGFT should issue a Circular or notification only after taking concurrence from CBEC and making them also issue a parallel Circular or Notification.
This way, two wings of the Government can avoid confusing the public!
CBEC Circular No. 893/13/ 2009- CX ., Dated: July 23, 2009