Notification No.50/1994-CE(N.T.), dt. 22/09/1994

Exports to Nepal - Rebate of duty - Procedure
In exercise of the powers conferred by rule 12 of the Central Excise Rules, 1944, the Central Government hereby directs that rebate of the duty paid on any excisable goods shall, on their exportation from India to Nepal, be granted to His Majesty’s Government of Nepal, if the following conditions are fulfilled, namely:-

(i) that the rebate does not, in each case, exceed the aggregate of the duty of Customs and additional duty of Customs levied by His Majesty’s Government of Nepal on such goods when they are imported into Nepal from any country other than India;

(ii) that such export has been made in accordance with such procedure as may be specified by the Central Board of Excise and Customs in this behalf;

(iii) that the amount of duty paid on the goods exported and the date of payment thereof are established from the Central Excise records to the satisfaction of the officer competent to sanction such rebate;

(iv) that where the goods are exported by land, the export takes place through any of the following border check-posts, namely, Sukhiapokhri, Panitanki, Jogbani, Jayanagar, Bairgania, Bhimnagar, Nirmali, Raxaul, Sonauli, Barhni, Nepalganj Road, Shohratgar (Khunwa), Jarwa, Katarniaghat, Gauriphanta, Banbasa, Jhulaghat, Dharchula, Naxalbari, Galgalia, Kunauli, Sonabarsa, Tikonia, or such other check-post as may be specified by the Central Board of Excise and Customs; and

(v) that the whole or that part of duty as is granted as rebate to the exporter is not allowed as rebate to His Majesty’s Government of Nepal.

ANNEXURE - I
Procedure for export to Nepal - Grant of rebate of Central Excise duty to His Majesty’s Government of Nepal.

1. When goods liable to duties of excise in India are despatched to Nepal through land, the exporter or his agent shall observe the following procedure at the registered factory or warehouse or premises as approved by the Collector of Central Excise, from where the excisable goods are removed for export to Nepal:-

(i) he shall pay the duties of excise and other duties leviable on the goods, if not already paid;

(ii) he shall clear the goods on the normal duty paying invoices which should be prepared in quadruplicate and marked "For export to Nepal";

(iii) thereafter, he shall present all the four copies of the invoice to the officer of Central Excise incharge of the factory or the warehouse;

(iv) the packages/goods shall then be verified by the officer of Central Excise and deliver to the exporter or his agent together with the original copy of the invoice, duly completed and registered. The exporter or his agent shall then be free to remove the goods for export to Nepal, through the land customs station appointed under Clause(b) of section 7 of the Customs Act, 1962 (52 of 1962) indicated on the respective invoices;

(v) the duplicate and triplicate copies of the invoices shall be put in a cover and sealed and handed over to the exporter or his agent by the Central Excise Officer for being handed over to the officer of customs incharge of the land customs station mentioned in the invoice and through which the said goods are to be exported to Nepal. The quadruplicate copy of the invoice shall be retained by the Central Excise Officer;

(vi) on arrival of the goods at the Land Customs Station such goods shall be presented by the exporter or his agent to the officer of Customs incharge of the land customs stations alongwith the original copy of invoice accompanying the goods and the sealed cover containing duplicate and triplicate copies;

(vii) the customs officer incharge of the land customs station shall -

(a) compare the original copy of the invoice with the duplicate and triplicate copies of the invoice;

(b) identify the containers with the particulars shown in the invoice;

(c) if the particulars are on the original copy of the invoice agree with the particulars on the duplicate and triplicate copies and the packages are satisfactorily identified, he shall made necessary entries in the register maintained at the land customs station and allow the goods the cross into Nepalese territory and certify accordingly on each of the three copies of the invoice and simultaneously indicate the running serial number in red ink prominently visible and encircled against Item 4 on all the three copies of the invoice. He shall satisfy himself as to the identity of the containers and the goods from the particulars shown on the invoice and, if necessary, by opening and examining the goods;

(d) deliver the original copy of the invoice duly endorsed to the exporter or his agent alongwith the goods for presentation to the Nepalese Customs Officer. He shall also send, directly the duplicate and triplicate copies of the invoice to the Nepalese Customs Officer incharge of the Checkpost through which the goods are to be imported into Nepal;

(viii) the goods will then be produced before the Nepalese Customs Officer at the corresponding border checkpost alongwith the original copy of the invoice. The Nepalese Customs Officer, shall deal with the original copy as directed by His Majesty’s Government of Nepal and return the duplicate copy, after endorsing his certificate of receipt of goods in Nepal direct to the officer of customs incharge of the land customs station;

(ix) the officer incharge of the land customs station shall forward the duplicate copy to the Deputy Director of Inspection, Customs and Central Excise, Nepal Refund Wing. For this purpose, the said officer incharge of the land customs station should keep a note of the return of duplicate copies from the Nepalese Customs Officer and remind the exporter for such copies as have not been received.

2. The Directorate General of Inspection, Customs and Central Excise (Nepal Refund Wing), New Delhi shall maintain separate registers for each Indian Border Customs Check Post. The duplicate invoice will be entered in the respective registers showing the running serial number in the recapitulation statement register prescribed for the purpose. At the end of every month he shall calculate the amount of rebate due in respect of all certificates of exports received during that month and shall prepare a consolidated statement to arrive at the amount of rebate due to His Majesty’s Government of Nepal. One copy of the recapitulation statement shall be forwarded to the Collector of Central Excise concerned for verifying the payment of rebate to Nepal Government and for issue of a post audit certificate in respect of the amount allowed as rebate against each invoice passed in that bill. In order to detect errors in the duty amount and quantity indicated, Internal Audit Department of the Collectorate concerned should check this factor by comparison with the recapitulation statement forwarded by the Directorate and the RT-12 return of the factories concerned. Where any over payment is noticed the fact should be brought to the notice of the Directorate for making necessary adjustment. One copy of the recapitulation statement shall be forwarded to the His Majesty’s Government of Nepal. One copy of the recapitulation statement shall remain as officer copy with the Directorate.

After receiving the recapitulation statement, the Collector will get a verification conducted that the concerned factories have actually paid the duty of excise against which the rebate is to be given and the Collector/PAO of that Collectorate shall furnish a certificate to the Directorate of Inspection to the effect that all the concerned factories have paid the amounts of duty as indicated in the annexures to the recapitulation statement.

3. In case the Directorate does not receive the duplicate copy of the invoice from the Officer incharge of the Indian Land Customs Station and the triplicate copy is not received by the Nepal Government, necessary check should be made with the officer incharge of the Indian Land Customs Station concerned as to the whereabouts of the particulars invoice.

4. The representative of the two Governments shall, as usual, meet to make a half yearly review of the working of simplified procedure.
NEPAL INVOICE
Invoice of goods liable to Central Excise Duty in Indian transmitted under Central Excise Seal to Nepal.

Invoice No. Range Circle

dated

ORIGINAL DUPLICATE Triplicate Quadruplicate

(Factory or warehouse)

Collectorate__________________________________from____________________________by_____________________________through the Border Post of________________________
(Merchant's Name)

Marks and numbers of packages	Numbers and description of packages	Description of goods with tariff classification	Net weight, value of quantity	Value (words and figures)	Rate of duty
(1)	(2)	(3)	(4)	(5)	(6)

Amount of duty (words and figures)	Number and date of document under which Central Excise Duty was paid	Gross weight of packages	Number and date of railway receipt, if any	Remarks
(7)	(8)	(9)	(10)	(11)
				Rs. P.

1. I/We hereby declare that the above-mentioned particulars are true and correctly stated and that the consignment of goods is intended for export to Nepal______________(Place) and shall not be diverted en route to any other country.

Place: Date:

Signature of exporter or his authorised agent.

2. Certified that the above mentioned packages have been identified by me and sealed with the Central Excise seal under my supervision.

Running Serial No.

Signature and designation of the Officer of Central Excise

Date:

(to given in red ink and encircled by the Border Examiner)
3. Certified that the above-mentioned consignment has been duly identified by me and has passed the Border Customs Post.

(Running Serial number of the Border Signature and designation of the In-Check Post to be written in red ink dian Officer-in-charge of the Border prominently encircled)                         Customs Post at_________________.

4. Certified that the above-mentioned consignment/packages have been duly identified by me and have been received and accounted for in Nepal.

Signature and designation
(with official seal) of Nepalese Customs Officer.
Check Post_____________________

[Note:- see following Parts of Chapters as mentioned in
New Central Excise Manual 2001 (w.e.f. 1/9/2001)
Part IV of Ch. 7]

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