Circular No. 87/87/94-0 dated 26/12/94
Exports without payment of Central Excise Duty in bon Rule 13(1)(a)
1.1 Attention of Collectors is invited to Board"s telex F.No. 209/18/.93 dt 26.09.94
& 27.09.94 communicating the issue of fresh rules and, notification relating to exports.
1.2 The new Central Excise Rule 13(1 )(a) has been framed to permit exports excisable
products without payment of Central Excise Duty. The Rule corresponds to the earlier Rule 13(1) of the Central Excise Rules. The Notification No. 48/94 dt. 22nd Sept. 1994 read with Corrigendum dt. 61 26th Oct, 1994] has been issued under the new Rule 13(1 )(a) which export of all excisable goods outside India except Nepal and Bhutan, without payment of Central Excise Duty.
2. The salient features of the new Rules and Notifications issued thereunder are briefly summarized below ;-
2.1 Self Removal Procedure
Now the exporters are being allowed to take clearances for export without the presence
and examination of export goods by the Central Excise Officer. However this facility
shall not be available to export of excisable commodities under physical control.
2.2 AR 4 and AR 4A are merged
The existing AR4 and AR4A forms have been merged. Now only one single type of AR 4 is required to be filed by exporters in all the situations namely:-
— Export Clearances on their own without examination by the Central Excise Officer whether under claim for rebate or under bond.
— Export Clearances under Central Excise seal whether under claim for rebate or under bond.
2.3 Option of executing bond either with Maritime Collector or Jurisdiction-al Assistant
Collector of Central Excise
(a) The number of Maritime Collectors has been presently reduced to seven.
(b) Even where the export is from any of the port, airport or post office falling within the jurisdiction of Maritime Collector of Central Excise, the option is available to execute the bond before such Maritime Collector of Central Excise or the Jurisdictional Assistant Collector of Central Excise. Accordingly exporters are required to clearly indicate on the AR4 the complete postal address of the authority before whom the bond is executed and to whom the documents are to be submitted/transmitted for admission of proof of export;
(c) Where the export is made from a Port/Airport/Post Office, other than the Port/Airport/Post Office falling within the jurisdiction of the. Maritime Collector of Central Excise specified in the Rule/Notification, the exporter shall be required to execute the bond for export without payment of duty before the jurisdictional Assistant Collector of Central Excise.
3. The following consolidated instructions are issued with regard to export under bond
without payment of Central Excise Duty on excisable goods exported to countries, other
than Nepal and Bhutan For exports to Nepal and Bhutan separate instructions are being
issued. The earlier instructions, on the subject which are inconsistent with these
instructions, the new rules and the notifications, issued thereunder may be treated as
withdrawn.
BOND
4.0 The first step that is required to be taken for clearance of excisable goods,
without payment of Excise Duty for export from the factory or the warehouse or any
other premises as approved is the execution of the bond for due despatch of goods. The
bond can be executed either by the manufacturer or the merchant exporter. Where the
export is from any of the port, airport or post office falling within the jurisdiction
of Maritime Collector of Central Excise, option is available to execute the bond
before such Maritime Collector of Central Excise. In other cases bond should be
executed before Assistant Collector of Central Excise having jurisdiction over the
factory of manufacture of excisable goods. For this purpose exporters are required
to
clearly indicate on the AR4 complete postal address of the authority before whom bond
is executed.
4.1 Types of Bonds: There are six types of bonds available for purpose of due despatch
of goods or exports. These are
B I (Surety)
B I (Security)
B I (General Surety)
B I (General Security)
B 16 (General Surety)
B 16 (General Security)
Exporters have option to execute general bond (B 1 general) or bond (B 1) to cover
particular consignment. In case of particular B-1 bond, amount of bond should be equal
at least to the duty chargeable on the goods to be exported. In case of general
B-1
bond amount of the bond would be equal to the full duty on the exporters estimate of
the maximum quantity of the excisable goods likely to be in transit during the
period
between clearance from the factory and acceptance of proof of export. In case of
B-1
general bond a running bond account in profoma of Annexure-I shall be maintained by
the authority before whom the bond is executed. The manufacturer- exporters who have
executed .B-16 bond are not required to execute separate bond to cover duty on goods
exported without payment of Duty.
4.2 Special facility to Certain categories of exporters : Following categories of exporters
need not furnish any Bank Guarantee or Cash Security for the export bond. Bond with Surety
would suffice in these cases.
— Super Star Trading Houses
- Star Trading Houses
- Trading Houses
- Export Houses
— Registered Exporters (registered with relevant Export Promotion Council)
4.3 Extent of Security or Bank Guarantee: Other manufacturer exporters may execute
B-1
/ B-16 bond with 10% security/bank guarantee. Merchant exporters (other than those
falling under para 4.2 above) shall execute B-1 bond with 25% security/bank guarantee.
4.4 Bond to be executed by Manufacturer Exporters
4.4.1 Manufacturers who are exporting on their own account (Manufacturer- Exporters)
who manufacture dutiable excisable goods and desiring to export without payment of
Excise Duty (under bond) can execute either a particular B-1 bond [to cover the
particular consignment] or a consolidated B-1 general bond [to cover a series of
export from his factory], or B-16 (General Security or General Surety) with the
jurisdictional Assistant Collector of Central Excise.
4.4.2 Where the export is from any of the port, airport or post office falling within
the jurisdiction of Maritime Collector of Central Excise, the option is available to
the Manufacturer Exporter to execute the particular bond or the consolidated bond
before such Maritime Collector of Central Excise. In case where B-1 bond is executed
for a specific consignment before the Maritime Collector of Central Excise, the
Manufacturer Exporter should obtain an attested photo copy of the Bond executed before
the Maritime Collector of Central Excise and produce the same at the time of
presentation of AR4 to the Superintendent of Central Excise. Where a Consolidated
B-1 general bond is executed before the Maritime Collector of Central Excise, the
Manufacturer Exporter shall inform him of intention to export the goods and obtain a
Certificate of provisional debit in the Running Bond Account (maintained in proforma
at Annexure 1) by him. This certificate will have to be produced by the manufacturer
exporter before Superintendent of Central Excise at the time of presentation of AR 4
for signature.
4.4.3 Export by Merchant Exporters under Bonds Executed by Manufacturers Merchant
exporters are all permitted to export excisable goods under Bonds executed by
manufacturers. In such circumstances, for purposes of complying with Central Excise
Law and Procedures the manufacturer who has executed the Bond would be responsible for
discharging all the liabilities under the said provisions. In such circumstances, the
application in Form AR4 will be in the name of the manufacturer who executes the Bond.
All other procedures for admission of the proof of export would be the same as in the
case of manufacturer exporters. It should be brought to the notice of manufacturers
that once they permit the Bond executed by them for exports by merchant exporters, it
would be the manufacturer"s responsibility for accountal of the export goods.
4.5 Bonds to be executed by Merchant Exporters
4.5.1
With jurisdictional Assistant Collector: Where a merchant exporter desires to
export excisable goods manufactured in a factory or number of factories, he can
execute a B-1 bond to cover a particular consignment or a consolidated B-1 general
bond, to cover series of export consignments from the same factory, before the
Assistant Collector of Central Excise having jurisdiction over the factory.
4.5.2.
With the Maritime Collector of Central Excise Where the export is from one of the port, airport or post office falling within
the jurisdiction of Maritime Collector of Central Excise, the option is available to
the Merchant Exporter to execute the particular bond or the consolidated bond before
concerned Maritime Collector of Central Excise. In case of a particular B-1 bond, the
Merchant Exporter should obtain an attested photo copy of the Bond executed before the
Maritime Collector of Central Excise and produce the same at the time of presentation
of AR 4 to the Superintendent of Central Excise. Where a Consolidated B-1 general bond
is executed, the Manufacturer Exporter shall inform the Maritime Collector of his
intention to export the goods and obtain a certificate of provisional debit in the
Running; Bond Account (in profoma of Annexure 1) maintained by him. This certificate
will have to be produced by the Merchant Exporter before Superintendent of Central
Excise at the time of presentation of AR 4 for signature. In above situations the
exports are expected to go through the port of the Maritime Collector of Central
Excise before whom the bond is executed.
4.5.3 Where the Merchant Exporter has executed the consolidated B-1 general bond
with the Maritime Collector of port "X" but the exports are to be made through the
port "Y" or "Z" falling under jurisdiction of other Maritime Collector of Central
Excise, the Merchant Exporter shall approach Maritime Collector of port "X" and
obtain a block transfer of the Credit in the Running Bond Account maintained by the
Maritime Collector of port "X" against the B-1 general bond. The block transfer shall be
made in favour of the Maritime Collector of Central Excise of port "Y" or "Z". The
Maritime Collector of Central Excise of port "X" shall also intimate the fact of block
transfer to both the Maritime Collector of Central Excise of port "Y" or "Z" and the
Superintendent of Central Excise having the jurisdiction over the factory/warehouse.
On receipt of intimation of Block Transfer, the Maritime Collector of Central Excise
of port "Y" or "Z" shall treat the same as Bond executed before him and shall be
responsible for monitoring the proof of export. However where it becomes. necessary
to
recover duties, the" action for recovery will have to be taken by the Maritime
Collector of Central Excise of-port "X".
4.5.4 Where the Merchant Exporter has executed the consolidated B-1 general bond
with the Maritime collector of port "X" but the exports are to be made through the
port "A" or "B" not falling under jurisdiction of any of the Maritime Collector of
Central Excise, the Merchant Exporter shall approach Maritime Collector of port "X"
and obtain a block transfer of the Credit in the Running Bond Account maintained by
him against the B-1 general bond. The block transfer shall be made in favour of the
Assistant Collector of Central Excise having jurisdiction over the factory/warehouse
and suitable intimation sent to him by the Maritime Collector of Central Excise of
port "X". On receipt of intimation of Block Transfer, the Assistant Collector of
Central Excise having jurisdiction over the factory shall treat the same as Bond
executed before him and shall be responsible for monitoring the proof of export.
However where it becomes necessary to recover duties, the action, for recovery will
have to be taken by the Maritime Collector of Central Excise before whom the bond is
executed.
4.5.5 Where bond is executed by the merchant exporter, it shall be necessary that the
AR4 is signed by both the merchant exporter and the manufacturer.
4.6 Running Bond Account
Every Central Excise Authority before whom a consolidated B-1 general bond
has been executed shall maintain a running bond account in the proforma of Annexure I -
Whenever any block transfer are made in favour of other Central Excise authority,
debit shall be made in the account. Suitable debit shall also be made whenever exports
are allowed against the bond. On acceptance of the proof of export the bond account
shall be credited to the extent the debit was made while permitting the exports. The
running bond account shall also be credited after the Block Transfer is returned by
the other authority. However where it becomes necessary to take action for recovery of
duties, such action shall be taken by the authority before whom the bond is executed
in consultation with the Assistant Collector of Central Excise having jurisdiction of
the factory and/or the other Maritime Collector of Central Excise.
5.0 The removal of goods without payment of Central Excise Duty from a factory or
warehouse without examination by the Central Excise Officers.
5.1.1 The exporters are now allowed to remove the goods for export on their own
without getting the bonds examined by the Central Excise officers in respect of all
commodities other than those covered under physical control. The AR4 in such cases
would be prepared in sixtuplicate, giving all particulars and declarations. The
exporter shall deliver triplicate, quadruplicate, quintuplicate and sixtuplicate
copies of AR 4, to the Superintendent of Central Excise having jurisdiction over
the
factory or the warehouse, within twenty four hours of the removal of the consignment
and would retain the original and duplicate copies for presenting along with the
consignment to the Customs Officer at the point of export. However the exporters may
ensure before clearances that the necessary bond as detailed in para 4 has been
executed for this purpose.
5.1.2. Exporters, whether manufacturer exporter or merchant exporter may be cautioned
that unless they execute the necessary bond before the Competent Authority they should
not clear the goods under the relaxed procedure. They should without fail indicate the
Bond Number and the authority before whom the relevant bond is executed in the
relevant columns provided in Form AR 4. Exporters should be suitably advised in the
Trade Notice that if it is found that the goods are being removed without execution
of bond for export or the particulars of bond furnished in the AR 4 is not correct and
proper, the exporters will be liable for penal action as if the goods have been
removed without authority of law.
5.2 The jurisdictional Superintendent of Central Excise shall examine the information
contained in AR4 and verify the fact of execution of bond (as per para 4 above) and
other certificates/declarations made by the exporter. After he is satisfied that the
information contained in the AR4 is true, he will sign at appropriate places in the
four copies of AR4 submitted to him and put his stamp with his name and designation
below his signature. He would then dispose of the triplicate, quadruplicate,
quintuplicate and sixtuplicate copies of AR4 as under:-
i) Triplicate To the authority before whom the bond is executed and who
will accept the proof of export i.e. Maritime Collector of
Central Excise or the Assistant Collector of Central
Excise declared by the exporter on the. AR4. This copy on
the request of exporter may be sealed and handed over to
the exporter/his authorized agent for presenting to the
authority.
ii) Quadruplicate To the Chief Accounts Officer in the Collectorate
Headquarters.
iii) Quintuplicate Office copy to be retained by the Central Excise
Officer.
iv) Sixtuplicate To be to given the exporter or his authorized in a sealed
cover.
Procedure for exports under Central Excise seal:
6.1 Where the exporter desires the sealing of the goods by the Central officers so
that the export goods may not be examined by the Customs (3 at the Port/Airport of
shipment, he should present an AR4 applicant sixtuplicate to the Superintendent of
Central Excise having jurisdiction over factory/warehouse at least twenty four hours
before the intended removal of the export goods from the factory/warehouse. However, where
exp unable to give 24 hours advance notice to the Superintendent of Central
Excise, his
request for shorter notice should normally be accepted. All such relaxations shall be
reported to the Assistant Collector of Central Excise for ex-post facto approval.
Collectors of Central Excise may delegate powers under rule 187 to the Assistant Collector
of Central Excise.
6.2 The Superintendent of Central Excise may depute an Inspector of Central Excise or may
himself go for sealing and examination of the export consignment. Where the AR4 indicates
that the export is in discharge of an export obligation under a Quantity-based Advance
License or a Value-based License issued under the Duty Exemption Scheme, in such cases the
consignment should invariably be examined and sealed by the Superintendent of Central Excise
himself.
6.3 The Central Excise Officer examining the consignment would draw samples wherever
necessary in triplicate. He would hand over two sets of samples, duly sealed, to the
exporter or his authorized agent for deliver, the Customs Officer at the point of
export. He would retain the third set for his records. The instructions and procedure for
drawl of samples prescribed by the Collector or the Board should be followed.
6.4 The export consignment should be carefully examined vis-a-vis the description
of
goods, their value and other particulars/declarations on the AR 4. Central Excise
Officer shall verify the facts, certificates/declaration made by the exporter. The value
declared on AR4 should be as per Section 4 of Central Excise and Salt Act, 1944. After
Central Excise Officer is satisfied that information contained in the AR4 is true and
after verifying that necessary (as detailed in para 4 above) has been executed by the
exporter, he would allowed the clearances and also sign all the six copies of the AR4 at
appropriate places and put his stamp with his name and designation below his signature.
The copies of AR4 would be disposed of as under:
To the exporter for presenting to Customs Officer at the point of
export along with the export consignment
Triplicate : To the authority competent to accept the proof of exports i.e. Maritime
Collector of Central Excise or the jurisdictional Assistant Collector of
Central Excise, as declared by the export on the AR4. The Central Excise
Officer may hand over this copy under a sealed cover on exporter"s request
Quadruplicate : To the Chief Account Officer at his Collectorate Head Quarters
Quintuplicate : To be retained for records
Sixtuplicate : To be given to the exporter or his authorized agent,
in a sealed cover, for handing over to Customs Officer.
Markings
7.1 The packages in which the goods are to be exported would be legibly marked in
ink or oil color or in such other durable manner with progressive number commencing
with No.1 for each calendar year and with the exporter"s name. Under proviso to rule
185(1) of Central Excise Rules, 1944, Collectors are empowered to relax this
requirement [Please see Para 15.5).
AR 4 Form:
8.1 The different copies of AR4 forms should be of different colors indicated
below:-
- Original - White
- Duplicate - Buff
- Triplicate - Pink
- Quadruplicate - Green
- Quintuplicate - Blue
- Sixtuplicate - Yellow
It will be sufficient if the copies of AR4 contain a color band on the tip or right
hand corner in accordance with above color scheme.
8.2 Exporters should be advised to take adequate care in filling up the AR4 proforma.
The authority before whom the bond is executed or in whose favour BLOCK TRANSFER is
obtained who is also the authority for accepting the proof of export should be
clearly indicated on the AR4 along with its complete postal address at appropriate
place in the AR4. The applicable portions should be carefully retained and
inapplicable portion struck off. The exporters are now required to give following
certificates/declaration.
"We hereby certify that the above mentioned goods have been manufactured
(a) availing facility/without availing facility of Modvat credit under rule
57A of Central Excise Rules, 1944
(b) availing facility/without availing" facility under Rule 12(l)(b) of
Central Excise Rules, 1944.
(c) availing facility/without availing facility under Rule 13(l)(b) of
Central Excise Rules, ,1944.
We hereby declare that the export is in discharge of the export obligation
under a Quantity based Advance Licence/Value based Advance Licence/Under Claim
of Duty Drawback under Customs & Central Excise Duties Drawback Rules, 1971.
9.1 The original, duplicate and sixtuplicate copies of the AR4 shall: presented by
the exporter/his authorized agent to the Customs Officer at the point of export along
with the goods, Shipping bill/Bill of Export and samples sealed by the Central Excise
Officer. The export consignment shall be checked by the Customs Officer to see whether
the seals are intact and the marks and number tally and if found in order he may allow
exports after ensuring that No. of the AR 4 has been indicated in the Shipping Bill or
the Bill of Export, as the case may be. The samples shall be dealt in accordance with
instructions/standing orders of the Collector of Customs or the Central Board of
Excise and
Customs. In case goods are removed from the factory without the supervision of Central
Excise Officer, Customs Officer shall carry out the usual examination and draw samples as
per standing instructions. After the goods have been shipped the proper officer of
customs would make necessary endorsements in the Original, Duplicate and Sixtuplicate
copies of the AR 4 at appropriate places and put his stamp with his name and designation
below his signature. The copies of AR 4 shall be disposed off by him in the following manner-
Original and Sixtuplicate : To be Handed over to the Exporter. Original shall
be used for filing proof of export for getting
the bond discharged. Sixtuplicate copy shall
be used for Drawback/DEEC endorsement.
The sixtuplicate copy of AR4 be presented by
the exporter for claiming Drawback or
endorsement of exports in the DEEC. At that
stage the same shall be re by the Customs
House for its records,
Duplicate : To be sent to authority before whom the bond
is executed and declared on AR 4. This copy
on a request of exporter may be sealed and
handled over to the exporter / his authorised
agent for presenting to the authority
declared an AR4 [Maritime Collector of
Central Excise or the Jurisdictional
Assistant Collector of Central Excise)
Filing of Proof and discharge of Bond :
10.1 Following documents should be filed by the exporter for proof of due exportation-
— Original copy of AR4
— Duplicate copy of AR4 in sealed cover received from Customs Officer
(optional)
— Duty attested copy of Bill of Lading
— Duly attested photocopy of Shipping Bill (Export Promote Copy)
10.2
With Maritime Collector of Central Excise: Where the export of goods is from
any of the ports, airports or post offices falling within the jurisdiction of Maritime
Collector of Central Excise .of Bombay, Calcutta, Madras, Paradeep, Vishakhapatnam,
Cochin, Kandia and the exporter had executed the bond before such Maritime Collector
of Central Excise or has obtained BLOCK TRANSFER in his favour and declared the same
on AR4, he will file as proof of due exportation the documents listed in para 10.1
above to Maritime Collector of Central Excise who shall compare the original AR4
received from the exporter with the triplicate copy of the AR4 received from the
Central Excise Officer and the duplicate AR4 received from the Customs Officer either
direct or from the exporter in Customs seal cover. The Maritime Collector after due
scrutiny and verification of the said AR4s, will record the proof of export and
discharge the bond and also inform the fact of acceptance of the proof of export to
the jurisdictional Superintendent of Central Excise. Where the proof of export is
admitted against BLOCK TRANSFER, the Maritime Collector shall return the BLOCK
TRANSFER to the authority before whom bond is executed and also intimate him the fact
of acceptance of proof of export.
10.3
With Assistant Collector, Central Excise having jurisdiction over the factory:
Where the exporter has executed the bond before the Assistant Collector having
jurisdiction over the factory or warehouse or has obtained BLOCK TRANSFER in his
favour, from where the goods were removed for export, lie will file as proof of due
exportation the documents listed in para 10.1 above before such Assistant Collector.
The Assistant Collector of Central Excise, would verify and compare the original copy
of AR4 with the duplicate copy of AR4 received from the Customs Officer either direct
or in customs seal cover from the exporter with the triplicate copy of AR4 received
from Superintendent, Central Excise Range and after satisfying himself that the proof
is in order admit the proof of export and will discharge the bond. Where the proof of
export is admitted against BLOCK TRANSFER, the Assistant Collector shall return the
BLOCK TRANSFER to the authority before whom bond is executed and also intimate him the
fact of acceptance of proof of export.
10.4
Partial Export:
If the scrutiny of AR4 reveals that only part of the consignment removed in
bond for export has actually been exported out of India, the Assistant Collector of
Central Excise or the Maritime Collector of Central Excise, as the case may be, shall
forthwith call upon the bonder to pay within 10 days the duty leviable on the quantity
short-shipped in terms of the bond. Such demands should be made by letter as
prescribed in Annexure 2. Where the bond is executed with the Maritime Collector of
Central Excise, the assessable value and the rate of duty leviable see para 15.11 on
quantity short shipped shall be worked out by such Maritime Collector and got
verified and confirmed by the Assistant Collector having jurisdiction over the
factory of manufacture/warehouse from where the goods were cleared for exports. Where
the bond is executed with the Assistant Collector having jurisdiction over the
factory, he will work out the duty recoverable and demand the same from the person
who has executed the bond. An endorsement of the recovery of duty on quantity short
shipped would be made in all the three copies of the AR.4 in the following form:-
"Proof of export admitted to the extent of duty amounting to Rs. ......in Figs.(...... in words). Duty on goods short-shipped (quantity short shipped.......) amounting to
Rs. ........in figs. (.......in words) demanded under demand No.....dated.........and
recovered vide Challan No........dt ..........of.......... (Name of the Bank)"
11 Small Scale Units:
Units which are otherwise eligible for benefit under any of the Central Excise
Notification granting partial or full Exemption based on value of clearances for
home consumption may be exempted from filing AR4 and Bond. In view of the exemption
from filing AR 4 and bond, the facility of sealing of the export consignment at
place of despatch under rule 187 of Central Excise Rules,1944 cannot be availed.
This shall be extended to only such of the units which exports whole of their
production either themselves or through merchant exporters. However, where exports are
by merchant exporters, it will be necessary that the shipping bill/bill of export
contains the name of the unit as manufacturer. Units who are availing.
- facility of Madvat credit under rule 57A of Central Excise Rules, 1944.
- facility under Rule 12 (1) (b) of Central Excise Rules, 1944
- facility under Rule 13(1 )(b) of Central Excise Rules, 1944
shall follow regular procedure of AR4 and bond for exports.
12 Diversion of Export Goods for home Consumption- Cancellation of Export documents.
12.1. An exporter intending to divert the excisable goods, cleared for export
in bond, for home consumption should send an intimation together with the original,
duplicate and sixtuplicate copies of the AR4 to the authority With whom bond is
executed and declared as such on the AR4 (i.e. the Maritime Collector of Central
Excise or the Assistant Collector of Central Excise having jurisdiction over the
factory). Where the bond is executed with the Maritime Collector of Central Excise, a
copy of the intimation sent to the Maritime Collector shall also be endorsed to the
Assistant Collector of Central Excise having jurisdiction over the factory.
12.2 The intimation referred in para above shall contain following minimum information.
- Description of the goods to be diverted for home consumption.
- Identification marks.
- No. of packages and complete description of packages.
- Quantity.
- Assessable Value under Section.
- Amount of duty due.
- Reasons for diversion for home consumption.
- Place where the said goods are lying pending clearance for home
consumption.
12.3
Where Bond Is Executed With Maritime Collector.
On receipt of intimation referred in para 12.2 above the Maritime collector of
Central Excise would seek verification of the goods including the description of
packages, identification marks etc. from the Superintendent of Central Excise having
jurisdiction over the lace where the goods are stored pending diversion for home
consumption. He will also simultaneously refer the matter to the Assistant Collector of
Central Excise having jurisdiction over the factory, for determination of Assessable
value [under Section 4 of the Central Excises and Salt Act, 1944] and duty
leviable.
After receipt of verification report regarding storage from the Superintendent of
Central Excise and after confirming the duty leviable from the jurisdictional
Assistant Collector, the Maritime Collector of Central Excise shall recover. the
duty.
After satisfying that the duty has been paid, he would cancel the Original, Duplicate
and Sixtuplicate copies of AR4 and note the fact of Cancellation in his records. He
will also cancel the bond and inform the Assistant Collector having jurisdiction over
the factory.
12.4
Where Bond is Executed With Jurisdictional Assistant Collector.
On receipt of intimation referred in para 12.2. above, the Assistant Collector
of Central Excise having jurisdiction over the factory, from where goods were cleared
for exports shall seek verification of the goods including the description of
packages, identification marks etc. from the Superintendent of Central Excise having
jurisdiction over the place where the goods are stored pending diversion for home
consumption. After receipt of verification report regarding storage from the
Superintendent of Central Excise and after working out the Assessable value
[under
Section 4 of the Central Excises and Salt Act, 1944] and the duty leviable, he shall
recover the duty. After satisfying that the duty has been paid, he would cancel the
Original, Duplicate and Sixtuplicate copies of AR4 and note the fact of Cancellation
in his records. He will also cancel the bond and inform the Concerned Maritime
Collector of Central Excise.
13 Re-entry of the goods, cleared for export under Bond but not actually exported, in the
factory of manufacture.
Sub-Rule (1 A) of Rule 173M of the Central Excise Rules, 1944, empowers the
Collectors of Central Excise to allow return of goods cleared for export under bond
but not actually exported provided such goods are returned to the factory within one
year and the assessee gives intimation of the re-entry of each consignment in Form D-3
within twenty-four hours of such re- entry. Further, such goods are to be stored and
accounted for separately.
14 Re-import of exported goods for repairs etc. and subsequently re-exported.
In Rule 173MM, provisions have been made for permitting re-entry of goods that
have been re-imported for undertaking repairs, re-conditioning etc., and subsequent
re-export therefore. It may, however, be specifically noted that such permission for
re-entry will be granted in those cases where the goods after being subjected to the
specified processes, are to be re- exported out of the country.
14.1 For return of the exported excisable goods to the factory of manufacture for
carrying out (i) repairs, (ii) re-conditioning, (iii) refining, (iv) re-making or
subjecting to any process similar to processes, referred to in (i) to (ii) above:-
(a) The manufacturer shall make an application m writing well in advance to the Collector, Central
Excise having jurisdiction over the factory where the above
processes are to be undertaken. The application should contain details of the-
- Premises including Central Excise Licence Number where the processing
operation is to be undertaken,
- Particulars of the goods re-imported and sought to be returned to . the
factory.
- Nature of processing along with collateral evidence to show that such
processing is absolutely necessary in the case,
- Expected date and time of commencement and completion of the processing,
(b) If permission for such processing is accorded, it would be subject to the
following conditions-
- Excise supervision over such processing operation will be required.
- Supervision charges will be recovered as prescribed under para 38.39 of
this Guide for rates of such charges.
- On arrival of the excisable goods in the processing factory an
intimation in proforma as given in Annexure 49 should be given to the
proper Central Excise Officer within 24 hours of their receipt, along
with the original documents etc.
- The goods should be stored separately in the factory after receipt and
should not be taken for processing etc., before verification by the
Central Excise Officer.
- Proper accounts of the goods received for repairs, reconditioning etc.,
should be maintained in the form as shown in Annexure 50.
14.2 After the processing etc. operations are completed, a fresh-AR4/AR4A/ Invoice(s)
will be issued by the Central Excise Officer, with a suitable endorsement thereon to
the effect that no rebate/drawback in respect of the goods which are being re-exported
as well as the goods used in the manufacture thereof is admissible. The disposal of
the AR4s shall be as usual, with necessary instructions by the Central Excise Officer
to the Officer of original manufacturer.
Miscellaneous
15.1
Rate of Duty: In terms of sub-rule (3) of rule 9A of the Central Excise Rules,
1944, in case of exports under bond, in absence of proper proof of export, the rate of
Central Excise duty leviable is the rate in force on the date on which Central Excise
duty is paid. Central Excise Officers dealing with the situations, where it becomes
necessary to recover Central Excise duty on goods cleared for. export under bond, such
as short shipment or diversion of export goods for domestic consumption etc. should
ensure that the Duty liability is calculated with reference to rate of duty in force
on the date of actual payment.
15.2
Numbering of AR 4: Every AR4 shall contain a running serial of the Factory
starting with 1 every financial year.
15.3
Appointment of Maritime Collectors : Collectors of Central Excise who are
functioning as Maritime Collector of Central Excise shall in the Trade Notice clearly
specify the postal Address of the authority designated as Maritime Collector who will
sanction the rebate claim and admit proof of exports in case of exports under bond.
15.4 Where the bonds executed by the merchant exporter, both the exporter and the
manufacturer shall sign the AR4.
15.5 Collectors may having regard to the nature of goods or trade practice relax any
of the conditions regarding-marking on the export packages recording the reasons.
Necessary trade notice may be issued for this purpose.
Issue of Trade Notice etc.
16 Collectors may also issue detailed Trade Notice/s and Standing Order/s in this regard.
Copies of all Trade Notices and Standing Orders may be endorsed to Board and DGICCE.
Annexure 1 and 2 are enclosed.
Yours faithfully,
Sd/-
(I.P.Lal)
Deputy Secretary to the Government of India
Annexure 1
Proforma of Running Bond Account to be Maintained by Assistant
Collector of Central Excise in respect of Consolidated B-1 (General)
Bonds Executed With Them.
1. Name of the Exporter
2. Address of the Exporter
3. Consolidated B-l Bond No. & Amount of Bond.
4. Whether with Surety of Security.
5. Name of Surety & his complete address.
6. Whether financial soundness of the surety has been verified.
Yes/No
| Date | Particulars | Credit Rs. | Debit Rs. | Balance | Remarks | Signature of Asstt.Collr |
| | Opening Balance | | | Cr... | | |
- Note:
- 1. Debit & Credit entries should be entered in separate lines.
2. Opening Balance is the amount of Bond as soon as it is executed and,"
accepted.
3. Debit entry shall be made on Block Transfer, while issuing certificate
of Provisional debit or exports.
4. Credit entry shall be made on acceptance of proof of export or return
of Block Transfer.
Annexure 2
Proforma of Demand in respect of Short Shipment of Exports Cleared Without
Payment of Central Excise Duty Under Bond
From
------------------------------
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To
------------------------------
------------------------------
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- Sub:
- Demand in respect of short shipment of exports cleared without
payment of C.Ex. duty under bond.
Kindly refer to AR4 No............ under which (qty.) of .........(description
(of goods) were taken clearance without payment of Central Excise duty on your
execution of Bond No. ...........On scrutiny of the documents submitted by you as
proof of export, it is observed that only ...........Qty.of........... (Description
of goods) have been shipped under S.Bo. No./Bill of export No. .......... dated
............... from................ (Name of port/airport/ICD/LCS), The quantity
short shipped is ........................ (qty.) of .............. (description of
goods) on which, Central Excise duty payable works out to be Rs. ........ (as detailed
in Annexure).
You are hereby called upon to deposit the difference within 10 days failing
which it should be explained to (Name of officer to be given) as to why action shall
not be taken for recovery in terms of the Bond executed and other provisions
of Central Excise Law.
You are further required to state as to why penal actions shall not be taken
against you for contravention of C.E. Rules. (Relevant rules to be cited).
Superintendent of Central Excise
(Seal)
F. No. 209/18/93-CX.6 (Pt.)Presented by eximkey.com