merchant exports

[Former Member]

Hi

I need a small clariffication

i have 1 Excise regisration

and 2 series groups for domestic and exports

now i also have a scenario of merchant exports where the goods are sold to indian customers on customers CT1 and customers ARE1 as they are meant for exports

so which series group i should use at the time of creation of excise invoice as the goods are removed with out payment of duty

regards

[Former Member · Accepted solution]

Dear Rithvika,

As i remember you had already posted a thread about the similar kind of issue. For merchant exports there is a scenario wherein customer gives his CT1 & ARE1(the numbering of which can be of customer's or our's...). For such scenario you need to take export excise invoice as per general practice but it'll always be best if regarding any scenario you check the exact business process from your nucleus team member for excise.

All the scenarios wherein you are supplying within India but the product is finally to be exported and the same thing has been declared to get the duty benefits is termed as Deemed Export.

Any further query, then write back...

Rgds,

Antima

[reazuddin_md · Accepted solution]

Hi Antima S,

Let me remind you that, we had exchanged many replies on the same posted by the guest.

- This Question arises, When we create ARE-1 for local customer who is meant for Deemed Export sales.

as per my knowledge,

I dont think its suggestable or possible to create ARE-1 for Deemed Export sales- that is for sure.

- which gives conflit with Number ranges - as i said above in my earlier reply.

[Former Member · Accepted solution]

Hello Dear,

I am not an excise expert so would not like to comment on whether its suggestable or not to create ARE-1 for Deemed exports. The business requirement at my client's place is to create ARE-1 and give the same number on customer's physical ARE-1 and business requirements and practices may differ wrt clients. Thats the reason that i had suggested Rithvika to check with the nucleus team member and accordingly map the process.

Now whether the client is following the wrong or right process is not to be decided by us and if excise department is accepting the process at my client's end then i think it must be allowed in some clause of excise rules.

Rgds,

Antima

[reazuddin_md · Accepted solution]

Yes, its true.

But, as per Rithvika's thread, they want to create ARE-1 in case of Deemed Export sales.

this is the only issue to resolve.

[Former Member · Accepted solution]

Dear,

I know that Rithvika is talking about creation of ARE-1 for deemed export. Just to reiterate, the Deemed Export is the case where we are supplying the material to a customer within India and customer declares that they are finally going to export the material. Within deemed export there are different scenarios like Deemed export against CT-1, CT3, Annexure-A and also the Sales tax is not charged if customer provides Form-H.

The scenario where we need ARE-1 is nothing but the sale against CT-1. Hope I am clear on it and if not then please check with somebody who can explain you in more detail as i've tried to explain optimal extent of my knowledge on this.

Rgds,

Antima

[Former Member · Accepted solution]

Hi

What i can understand, customer located in SEZ in india permitted to avail benefit of Exports (ARE-1)

There is no solution in standard SAP for this situation to the best of my knowledge.

If yes then you may try a work around as Create the Customer permitted for Exports with it SEZ's adress & Country other then India. Export order > delivery > billing > excise invoice ( select Lout/ Bond) > are 1. Its just a thought

Regards

Tejpal

[Former Member]

Hi

Rithvika

U can have more than one series group against one excise registration. What i suggest from my company practise that you please define one more series group for without payment of duty and at the time of creation of exicse invoice you choose the series for w/o payment of duty. This will help your excise people in reporting purpose also.

Hope this will help you.

Thx.

[Former Member]

hi

my doubt is that at the time of creation of excise invoice at utilization tab which one i should select

either local or deemed

or the excise invoice should be of export

regards

[Former Member]

Hi

Please note that currently SAP supports CT1 licence type with ARE3 document and not with ARE1.

If you proceed futher then you can select Deemed instead for Local while creating excise invoice. Then followed by ARE3 document where you have to enter the CT1 licence number and Year in the field provided for the same.

Regards

MBS

[reazuddin_md]

Hi,

This depends on the decision we make to proceed, how we have to consider "Merchant Exports"- either Deemed or Export- which solve this issue too.

The things here is,

We cant Create ARE-1 for "Deemed Export" sales, even if we create ARE-1 for Deemed Exports,

we have to look for,

- Number Ranges ( which will be conflict bet ARE-1 & ARE-3 Numbers)

- While creating Excise Invoice -J1IIN, Selecting, Excise Invoice type- ?

- maintaining number ranges in J1i9 ( as we have specific number ranges for Local as well as Exports,)

thats the reason, we have not decided yet, whether to go for ARE-1 for deemed Exports.

[Former Member]

HI

Any replies

rega