Circular No. 284/118/96-CX dated 31/12/96
Sub : Central Excise - Simplification of Export procedure
Representations have been received regarding the difficulties faced by the exporters.
The matter has been examined by the Board. The issue raised and the clarifications
thereon are as under:-
1. Delay in allowing credit in running bond account
Discharge of the bond/grant of credit in running bond account in cases where bond is
executed under rule 13 or rule 14 is invariably delayed because of the time taken in
reaching acceptance of proof of export in the office of Jurisdictional Range Officer
from the Maritime Commissioner. In this regard, suggestions have been made that
instructions could be issued by allowing provisional credit in running bond on the
strength of exporters" copy of AR-4 certified by Customs
Clarification
From time to time, the Board has issued detailed instructions regarding availment of
provisional credit in the case of delay in receipt of Department"s copy of-AR-4/AR-4A.
These instructions were contained in Board"s Circular No. 44/80-CX.6 dated 26.9.80,
No.44/82-CX dated 8.12.82 and Circular No. 43/85-CX.6 dated 5.11.85. These circulars
mention, inter cilia, that provisional credit can be allowed on the basis of the
attested photocopy of the exporter"s own copy of AR-4/AR-4A duly certified by the
Customs Officers. The instructions further provided that show-cause notices need not
be issued where such credit has been taken. These instructions are reiterated mutatis
mutandis. However, final credit will continue to be allowed only on receipt of
intimation from the Maritime Commissioner regarding final acceptance of the proof of
export of the consignment. Maritime Commissioner will ensure that such intimations are
issued" as expeditiously as possible. To facilitate the correlation, important
particulars like vessel name, rotation number etc. could also be noted in the running
bond account.
Further under the new export procedure circulated vide Circular No. 87/87-CX dated
26.12.94 a provision Has been made to hand over the duplicate copy (by the Customs at
the port of Exports) and the triplicate copy (by the Range Superintendent) of the AR-4
meant for the Maritime Commissioner or the jurisdictional Central Excise Officer, as
he case may be, to the exporter in a sealed cover for being handed over to the
concerned Officer. Customs officers should be asked to grant this facility whenever
requested.
2. Delay in allowing export at the port of export
Export cannot be executed unless triplicate copy of AR-4 reaches the Customs Officer
from the Superintendent of Central Excise. Due to this, the exports are delayed
considerably.
Clarification
Para 5 of Board"s Circular No. 87/87/94-CX dated 26.12.94 provides that exporters are
allowed to remove the goods for export on their own where they do not want examination
to be done by the Central Excise Officers. It has been provided only for the sake of
verification that in such cases they shall, within 24 hours of the removal of the
consignment, deliver triplicate copy, quaduplicate copy, quintuplicate copy and
sixtuplicate copy of AR-4 to the Range Superintendent. Accordingly, it is clarified
that the Customs Officers, should not withhold such exports for want of triplicate
copy from the Range Superintendent. It is, however, clarified that exporters should
not clear such goods unless they execute necessary bond in terms of Rule 13 or Rule
14, as the case may be and they should also indicate the bond number and the authority
before whom the bond is executed in the relevant column provided in From AR-4.
Difficulties in executing bond with sureties.
Earlier accredited export houses were allowed to execute bond without surety. This has
however been changed and it is now obligatory vide Board"s Circular No. 87/87/94-CX
dated 26.12.94 that even such exporters should execute the bond with surety. This has
created a lot of hardships to the exporters.
Clarification
Rule 13 and rule 14 provides for execution of a bond with surety or bond with
security. To remove the hardship in executing surety/security it has been decided that
bond may be taken without security/surety in case of following categories of
exporters :-
Super Star Trading Houses
Star Trading Houses
Export houses
Registered exporters (Registered with relevant Export Promotion Council)
Manufacturers registered with Central Excise Department, subject to the condition that-
(I) the exporters have not come to the adverse notice of the Department in the last
three years
(ii) all the formalities required under Central Excise Acts and Rules related to
exports are regularly complied with by the Exporters.
(iii) A copy of the registration-cum-membership certificate (RCMC duly attested by
the exporter is submitted. This facility can be withdrawn without prior notice to any
exporter if he comes to the adverse notice of the Department.
4. Registration of SSI units with Central Excise Department
Units whose domestic sales are below Rs. 30 lakhs per annum are also being insisted to
be registered with Central Excise Department, especially in Kanpur Commissionerate on
the ground that their turnover including the export turnover is more than Rs. 30
lakhs. Earlier, such units were not required to be registered as there is no excise
duty upto the turnover of Rs. 30 lakhs.
Clarification
It has been clarified vide Board"s Circular No. 212/46/96-CX dated " 20.5.96 that a
unit whose value of clearance for home consumption was. less than Rs. 30 lakhs in the
preceding financial year or during the current financial year will not be required to
take Central Excise Registration.
2. All the previous instructions which are contrary to these instructions stand
modified.
3. Board desires that instructions contained in this letter should be followed
scrupulously in order to facilitate the exports. A serious view will be taken where
the complaint of undue hardship in such cases are received.
Sd/-
(P.K.Sinha)
Under Secretary (CX.6)
[Note:- see following Parts of Chapters as mentioned in
New Central Excise Manual 2001 (w.e.f. 1/9/2001)
Part II of
Ch. 7;
Ch.14]
F.No.209/54/96-CX.
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