Trade Facility No.15/2012 – Central Excise/SH

Dated Shillong the 19th October 2012

 

Subject: Conditions and Procedures relating to Export of Excisable goods – reg. 

Following the withdrawal of exemption from levy of Central Excise Duty on Coal falling under Chapter 2701 of the First Schedule to the Central Excise Tariff Act 1985 contained in the Tenth Schedule to the Finance Bill, 2011 read with clause 70(a)(i), a nominal Duty of 1% ad-valorem without Cenvat credit has been imposed on Coal through Notification No. 1/2011-CE dated 1st March, 2011. Now that the coal has become excisable goods by virtue of the said notification, attention of all Exporters is invited to the related Notifications/Circulars/ instructions issued by the Central Board of Excise & Customs, Department of Revenue, Ministry of Finance, Government of India laying down the Conditions and Procedures relating to Exports of Excisable Goods. 

2.0       The Procedures relating to export of excisable goods can be classified into two namely, (i) Export of goods on payment of duty under rebate (under Rule 18 of Central Excise Rules 2002) and (ii) Export of goods without payment of duty (under Rule 19 of Central Excise Rules 2002). Manufacturers / Exporters can export excisable goods either on Payment of duty under claim for rebate or without Payment of duty provided that necessary conditions & procedures as specified and laid down for each scheme are fulfilled. 

3.0       EXPORTS OF GOODS ON PAYMENT OF DUTY UNDER CLAIM FOR REBATE: The conditions and procedures relating to export under claim of rebate are contained in the Notification No. 19/2004-CE (NT) dated 6th September 2004 issued under Rule 18 of Central Excise Rules 2002. The following conditions & procedures are required to be followed by all exporters - 

3.1       Conditions for export under claim for rebate:

 

              I.        The excisable goods (Coal) shall be exported after payment of duty directly either from the Mining area or Depot. The condition of “payment of duty” is satisfied once the exporter records the details of removals in the Daily stock Accounts maintained under Rule 10 of Central Excise Rules 2002, whereas the duty may be discharged in the manner as prescribed under Rule 8 of the said Rules i.e. on monthly basis.

            II.        The Coal shall be exported within six months from the date on which they were cleared from the mining area or depot. This date will be indicated on the ARE-1 and the Invoice issued for the purpose.

           III.        The market price of the Coal at the time of exportation is not less than the amount of rebate of duty claimed.

          IV.        The amount of rebate of duty admissible is not less than Rs 500/-. 

3.2       Procedures for export under claim for rebate:

 

  1. The goods (Coal) must be removed under the cover of Central Excise Invoice in terms of Rule 11 of the said Rules.
  2.  ARE-1 (copy enclosed) is the Central Excise document for Export which shall be prepared in Quadruplicate. This document shall bear a running serial number beginning from the first day of the financial year. The different copies of ARE-1 forms should be of different colours (Original – White, Duplicate – Buff, Triplicate – Pink and Quadruplicate – Green). It will be sufficient if the copies of ARE-1 contain a color band at the top or right hand bottom in accordance with above color scheme.
  3. The Exporter himself can remove the coal consignment from his Mining area or Depot under Self-sealing and Self-certification method without examination & sealing of goods at the place of dispatch by a Central Excise Officer. For this purpose, the Exporter or his Manager or a person who is a permanent employee of the of the said owner of the export goods or owner of the depot, as the case may be, shall certify on all copies of the application (ARE-1) that the goods have been loaded/weighed in his presence.
  4. When goods are removed for the purpose of export they shall be assessed to duty as per the provisions of Central Excise Act, 1944 and duty payable shall be specified in the ARE-1 and Invoice.
  5. The Superintendent or Inspector of Central Excise shall satisfy himself that declaration made in ARE-1 is correct and then make endorsement.
  6. Where export is done from his Mining area or Depot, the original and duplicate copies of ARE-1 are given back to the exporter after endorsement which will then be sent to the place of export along with the goods. The third copy will be sent to the rebate sanctioning authority and the fourth will be retained by the officer for his records.
  7. The Customs officer shall verify goods to see that the identity & quantity mentioned in ARE-1 is correct and also verify documents in terms of customs law requirements.
  8. If everything is in order, the officer shall allow export and certify in the ARE-1 that the goods are exported. The Shipping Bill or Bill of Export number and date should also be mentioned in the ARE-1.
  9. The Customs officer shall return the original copy of ARE-1 to the exporter and forward the duplicate copy to the rebate sanctioning authority. The duplicate copy could also be handed over to the exporter in a sealed cover.
  10. The Exporter can file the rebate claim before the Deputy / Assistant Commissioner having jurisdiction over the area. It shall be essential for the Exporter to indicate on the ARE-1 at the time of removal of export goods the office and its complete address with which they intend to file claim of rebate. The following documents shall be required for filing claim of rebate:

 

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

            ii.          Original copy of the ARE-1 duly certified by Customs authorities,

           iii.          Invoice issued under Rule 11 and

           iv.          Self-attested copy of Bill of Export. 

4.0       EXPORTS OF GOODS WITHOUT PAYMENT OF DUTY: The conditions and procedures relating to export under claim of rebate are contained in the Notification No. 42/2001-CE (NT) dated 26th June 2001 issued under Rule 19 of Central Excise Rules 2002. The following conditions & procedures are required to be followed by all exporters - 

4.1       Conditions and procedures of Export by a Miner-Exporter under this Scheme:

 

              I.        Submission of Letter of Undertaking: The Exporter should submit a Letter of Undertaking in Form UT-1 (copy enclosed) to the Deputy / Assistant Commissioner of Central Excise having jurisdiction over the Mining area or depot. The Letter of Undertaking is normally valid for a period of 12 calendar months.

            II.        Sealing of Goods: The Exporter shall take steps to get the goods ready for export. He shall examine the export consignments and certify them himself.

           III.        Export Invoice and ARE-1: The Exporter shall raise an Excise Invoice which shall state prominently “FOR EXPORT WITHOUT PAYMENT OF DUTY” and in addition to the Invoice, a specified Form in ARE-1 in Quadruplicate. The details of the clearance to be made are to be entered in the Daily Stock Account Register.

          IV.        Certification: Each of the copies of ARE-1 will have to be certified by the Exporter/Manager/Partner or person duly authorized to oversee the self-sealing and self-certification process. The certification should be to the effect that loading/weighment of the goods has been done in his presence.

           V.        Distribution of ARE-1: The Original & Duplicate copies of ARE-1 would accompany the goods to the place of export and the Triplicate & Quadruplicate copies would be sent to the jurisdictional Superintendent or Inspector of Central Excise within 24 hours of removal.

          VI.        Proof of Export: The Exporter shall file a statement in the prescribed format at least once in a month giving the details of removal and the proof of shipment received for earlier clearances as well as the cases where proof is pending along with the copies of ARE-1 form as specified above.

 

4.2         Conditions and procedures of Export by a Merchant-Exporter under this Scheme:

 

        I.        B-1 Bond: The Exporter should first of all submit a General Bond in Form B-1 (copy enclosed) for an amount equal to the Central Excise duty chargeable on the goods to the Deputy / Assistant Commissioner of Central Excise having jurisdiction over the Mining area or Depot. The bond will be with adequate Surety or Security as may be approved by the concerned officer. The security is normally 25% of the bond amount if the exporter is not registered with Export Promotion Council and the surety is for the full bond amount. The bond shall be on non Judicial Stamp paper of the value as applicable to the state in which it is being furnished.

      II.        CT-1 Certificate: The Exporter shall then obtain certificates in Form CT-1 (copy enclosed) from the jurisdictional Superintendent of Central Excise for the purpose of procuring excisable goods (Coal) without payment of duty.

     III.        Export Goods Details: The Exporter shall issue CT-1 to the Miners from whom excisable goods (Coal) are to be procured without payment of duty for the purposes of export. The CT-1 should be clear in terms of the description of goods sought, the quantities, the value and the duty involved.

    IV.        Running Bond Register: The Exporter shall maintain a Running Bond Register wherein the duty amount of excisable gods (Coal) received under CT-1 would be debited. The debit cannot exceed the credits in the bond account at any point of time and where it is about to happen, another bond for additional amount is to be furnished.

   VII.        Sealing: The Exporter shall take steps to get the goods ready for export. He shall examine the export consignments and certify them himself.

     V.        Export Invoice and Certification: The Exporter shall raise his Excise Invoice and in addition to the Invoice, a specified Form in ARE-1 in Quadruplicate. Each of the copies of ARE-1 will have to be certified by the Exporter/Manager/Partner or person duly authorized to oversee the self-sealing and self-certification process. The certification should be to the effect that loading/weighment of the goods has been done in his presence.

    VI.        Distribution of ARE-1: The Original & Duplicate copies of ARE-1 would accompany the goods to the place of export and the Triplicate & Quadruplicate copies would be sent to the jurisdictional Superintendent or Inspector of Central Excise within 24 hours of removal.

   VII.        Proof of Export: The Exporter shall file a statement in the prescribed format at least once in a month giving the details of removal and the proof of shipment received for earlier clearances as well as the cases where proof is pending along with the copies of ARE-1 form as specified above.

 VIII.        Once the proof of export as stated above is submitted and acknowledged by the Deputy / Assistant Commissioner of Central Excise the Exporter shall claim the credit in the bond register maintained which has been debited at the time of procurement of goods for the sake of export. 

 

Sd/-

(Ananya Ray)

Commissioner

 Disclaimer: This is only for the facilitation of the public .For any doubts the original statutes and notification may be referred to. For any clarifications the following officers may be contacted: 

 

The Assistant Commissioner of Central Excise,

Shillong Division,

2nd Floor, Meghalaya State Housing Financing Co-operative society ltd.

Nongrim Hills, Shillong -793003.

Tel No: 0364 2522927, Fax No. 0364 2522953