CHAPTER 7

EXPORT WITHOUT PAYMENT OF DUTY

Part-III

SIMPLIFIED EXPORT PROCEDURE FOR EXEMPTED UNITS
1. Introduction

1.1 Units, which are fully exempted from payment of duty by a notification grantingexemption based on value of clearances for home consumption, may be exemptedfrom filing ARE.1 and Bond till they remain within the full exemption limit. The followingsimplified export procedure shall be followed in this regard by such units: -

2.Filing of declaration

2.1 Manufacturers exempted for payment of duty will not be required to take CentralExcise Registration. They shall however, file a declaration in terms of Para 2 of NotificationNo.36/2001-CE(NT), dated 26.6.2001, and obtain declarant code number[notwithstanding they are exempted form declaration, but for this procedure].

3. Documentation

3.1 The clearance document will be, as follows:

i) Such manufacturers are permitted to use invoices or other similardocuments bearing printed Serial Numbers beginning from 1 st day of afinancial year for the purpose of clearances for home consumption aswell as for exports. (The printing of Serial Numbers can be done by use offranking machine). The invoices meant for use during a month shall bepre-authenticated by the owner or partner or Director/Managing Directorof a Company or other authorised person.

ii) The declarants Code Number should be mentioned on all clearancedocument.

iii) Such clearance document should contain particulars of the description ofgoods, name and address of the buyer, destination, value, [progressivetotal of total value of excisable goods cleared for home consumptionsince beginning of the financial year], vehicle number, date and time ofthe removal of the goods.

iv) The clearance document will be signed by the manufacturer or hisauthorised agent at the time of clearance.

v) In case of export through merchant exporters, the manufacturer will alsomention on the top "EXPORT THROUGH MERCHANT EXPORTERS" and willmention the Export-Import Code No. of such merchant exporters.

vi) In case of direct export by the manufacturer-exporters, he will mention onthe top "FOR EXPORT" and his own Export - Import Code No., if any.

3.2 Records

3.2.1 Such units shall maintain a simple record of quantity and value of production andclearance. Entries in production record should either be allowed to be made at theclose of the day or before the commencement of the production on the following day.Entries need not be made on days when there is no production or clearance of goods.

3.3 Statement

3.3.1 Such units shall file a prescribed quarterly statement to the Jurisdictional RangeSuperintendent containing various particulars. (Annexure-20)

4. Proof of Export

4.1 Following documents shall be accepted as proof of export :

4.1.1 In the case of direct export by the Manufacture- exporter

(i) Duly attested photocopy of shipping bill (Export Promotion Copy) bearingthe particulars and date of clearance document under which the goodsare cleared from the factory of production, having endorsement on itsreverse by the Customs of the particulars of mates receipt no. (whereverapplicable), name of the ship/ flight no., of the aircraft, vehicle no. - bywhich the goods were exported out, date of export, and EGM Number/Airway Bill Number (wherever applicable);

(ii) Duly Customs attested copy of Bill of lading; and

(iii) Foreign Exchange Remittance Certificates.

4.1.2 In the case of export through Merchant-exporter the document prescribed bySales Tax Department will be accepted as the proof of export. Sales made bymanufacturer of the goods to the merchant exporter which ultimately are exported areexempt from Central Sales Tax. The Sales Tax Department issues booklet to the merchantexporters containing serially numbered H-Forms/ST-XXII form or equivalent Sales Tax form.After the goods have been exported by the merchant exporters, the latter issues theseforms to the manufacturers of the goods. The merchant exporters in turn have toaccount all these serially numbered forms to the sales Tax Department by furnishing aproof that the goods have been exported out. These proofs are in the from ofpresentation of the Shipping Bill duly completed by the customs, bill of landing, foreignexchange remittance certificates etc. The liability of the manufacturers to the CentralSales Tax gets discharged only when they submit these forms to the Sales TaxDepartment. It is, therefore, seen that indirectly exports get accounted for through theissue of H-form or ST-XXII Form. Thus, photocopy of H-form or ST-XXII Form or any otherequivalent Sales Tax form duly attested and stamped by the manufacturer or hisauthorised agent will be accepted for purpose of proof of export.

4.2 Submission of proof of export and processing thereof

4.2.1 The proof of export should be submitted to the Range Officer within a period of 6months from the date of clearance of goods from the factory of production.

4.2.2 If Range Superintendent finds that the clearances for home consumption, andthe clearances for export where proof of exports have not been furnished within 6months, when taken together, are likely to exceed the exemption limit (which is presentlyRs. 100 lakhs for home consumption), he should issue show cause notices forsafeguarding revenue. These show cause notices, however, should be kept pending foranother three months by which time proof of exports are expected to be received.

4.2.3 The Range Superintendent will maintain manufacturer wise record on the basis ofthe quarterly return and the proof of exports submitted by the manufacturer from time totime in order to ascertain that the clearances for exports and the proofs of exports areduly accounted for and in case of failure on the part of exporter to submit proof ofexport, necessary action can be initiated promptly on the lines already mentioned in theabove para.

4.3 In case clearances of such manufacturers for home consumption plus clearancefor export where proof of export were not furnished within 6 months, exceed theexemption limit, they should take Central Excise Registration and follow the regularA.R.E.1 procedure.

4.4 This procedure will also be applicable to exports of ready-made garments.

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