CT1 and ARE1, Merchant Export

[prashantatri]

Hi All,

My client is purchasing materials and exporting. They do not have Excise Registration. They have bond of Rs.2 Cores with Excise department. When they purchase materials, they apply for CT1 and provide it to the Vendor. When the vendor supplies the materials, he gives the CT1 and ARE1. After export they submit custom authenticated CT1 back to the excise department.

Please suggest me how to map this scenario in SAP and how much standard SAP can support.

Regards

Prashant

[Lakshmipathi]

Since the client is not registered under Excise, you have to follow the Merchant Export formalities if I am correct.  CT-1 & ARE-1 will come into picture, only if the manufacturer is excise registered.  For Merchant Exports, AR-4 would be issued.  Once again check with the client and get clear cut process documentation from excise point of view.

G. Lakshmipathi

[prashantatri]

I have seen their forms, they are using CT1 and ARE1 only.

In my case CT1 and ARE1 are coming in picture at the time or purchase order. We are giving CT1 to the vendor and he is supplying materials with the CT1 and ARE1 both. We are storing these materials in a rented warehouse. At this point of time, we do not have Sales Delivery document or Sales Billing document or Outgoing Excise Invoice document. When I am trying to create ARE1 or ARE3 system is asking outgoing excise invoice number which I do not have.

When I create CT1 document (J1ILIC01), system is asking to enter sold to party. I need to put my vendor code, because I am giving the CT1 to my vendor.

Is above scenario possible in standard SAP?

[bsivasankarreddy_reddy]

hi

check this

http://scn.sap.com/thread/1236405

http://scn.sap.com/thread/1044774

[prashantatri]

Hi Bojja,

In both the scenarios you have referred, client is manufacturer and customer is a merchant exporter. In my case my client is a merchant exporter.

Please look the scenario from a merchant exporter angle.

Please consider 1 change in my original query. After custom authentication, they submit ARE1 back to Excise department. (In my query I mentioned CT1 is submitted back to excise department.)

Thanks

Prashant Atri

[prashantatri]

Any replies.....

[jpfriends079]

CT1 is one of the license types, for that you need to
1. Create ARE3 by using TCode J_1IARE3.
2. Capture license by using TCode J1ILIC01.

If your scenario is of exporting under bond, then you might need to
1. Create ARE1 by using TCode J_1IARE1.
2. capture bond by using TCode J1IBN01.

Regards, JP

[prashantatri]

I created excise Invoice using J1IIN, Now when I am trying to create ARE3, one error message is coming.

000020003/2012 excise invoice is meant for normal exports.

Message no. 4F260

Please suggest me how to resolve this.

Regards

Prashant Atri

[bsivasankarreddy_reddy]

hi

check the j1iin , you create the bond, no bond , you will check  because when bond then only you crate the ARE3 ,  check the j1iin utiliti