Are-1

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2015 Dear Experts,
Form ARE-1 is contain five copy, plzz clarify to whom all these 5 copy will be given plz explain one by one...

Regard
Ankit chahar

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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29 December 2015 Dear Ankit,

Central excise clearance is one of the procedures under exports and Imports in India.

Here we can discuss about various methods of central excise clearance procedures and formalities under export of goods.

Central Excise Clearance procedures Under Claim of Rebate (Without Examination)
Under this method, exporter pays excise duty and clears the goods on his own, without examination by the Central Excise Officer.

Application to Excise Authorities: The exporters are allowed to remove the goods for export, on their own, without getting the goods examined by the Central Excise officers. The application form – ARE-1 in such cases would be prepared in sixtuplicate, giving all particulars and declarations, after removal of goods. The exporter shall submit triplicate, quadruplicate, and sixtuplicate copies of ARE-1 to the Superintendent of Central Excise having jurisdiction over the factory or the warehouse, within twenty four hours of the removal of the consignment. He would retain the original and duplicate copies for presenting along with the consignment to the Customs Officer at the point of export.

Examination by the Central Excise:

The jurisdiction Superintendent of Central Excise shall examine the information contained in ARE-1 and verify the facts of payment of duty and other certificates/ declarations made by the exporter. After he is satisfied that the information contained in the ARE-1 is true, he will sign at appropriate places in the four copies of ARE-1 as under.
(i) Triplicate: to the rebate sanctioning authority viz. Maritime Collector of Central Excise or the Assistant Commissioner of the Central Excise as declared by the exporter on the ARE-1. This copy, on the request of exporter, may be sealed and handed over to the exporter / his authorized agent for presenting to the rebate sanctioning authority.
(ii) Quadruplicate: To the Chief Accounts Officer in the Commissionerate Headquarters.
(iii) Quintuplicate: Office copy to be retained by the Central Excise Officer.
(iv) SIXT plicate: To be given to the exporter.

Examination by Customs Authorities:

In this case, the customs authorities would invariably examine the goods, as excise authorities have not examined goods. The rest of the procedure is the same detailed in the earlier procedure for Central Excise clearance under Claim of Rebate (WITH EXAMINATION).

Procedure for Excise Clearance under Bond / Letter Undertaking:
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The procedure under this rule is similar to the one under claim for rebate. This is governed under Rule 13.

Under this rule, there is no PLA(personal Ledger Account) as no duty is paid. Instead of payment of duty, the manufacturer exporter executes bond/letter of undertaking to the amount equivalent to the excise duty. Bond can be executed with surety or without surety. Such a bond is to be supported by the bank guarantee to protect financial interests of excise department. Exporters of the following categories are allowed to execute bond with surety and do not have to furnish any bank guarantee or cash security.

Five star export house
Four Star export House
Three star export House
Two star export House
One star export house

Registered Exporters (Registered with relevant Export Promotion Council)
Manufacturers registered with Central Excise Department.

Letter of Under taking by Manufacture- Exporter

Manufacturer-Exporter is neither needed to pay excise duty nor file the excise Bond.
Manufacturer-Exporter can obtain clearance of export shipment by producing Letter of Undertaking. This is a great concession to the manufacturer who directly exports the goods.

Querist : Anonymous

Querist : Anonymous (Querist)

05 January 2016 sir plz clarify the difference between removal of goods under LUT and under Rule 19, plzz clarify....

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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06 January 2016 Bond is an instrument by which the obligation to pay money is created
expressly. It is also a legal agreement whereby a person undertakes to do or not
to do anything subject to conditions stipulated in the agreement. The primary
purpose of the bond is to secure due compliance with the rules and procedures
laid down under the Excise law. A bond is a collateral security , which the
department is securing to ensure payment of appropriate duty in addition to the
statutory provisions available.

in your case B-1 Surety / Security (General Bond) - for export of goods without
payment of duty under Rule 19;

Under this method, exporter does not make payment of excise duty. He has to obtain bank guarantee or surety to an amount equivalent to excise duty payable. This is beneficial to the exporter, as finances are not blocked. Once evidence of export is shown, the excise authorities would release the bond. In case of manufacturer-exporter, he can execute undertaking for the amount of excise duty payable instead of submitting Bond.

Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2016 sir if we clear goods for export under LUT then will i have to debit the duty in PLA/cenvat also have to shown d
duty in ARE-1 or not....

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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07 January 2016 YES,the exporter who has furnished bond shall ensure that the debit in bond account does not exceed the credit available therein

Querist : Anonymous

Querist : Anonymous (Querist)

07 January 2016 sir weather ARE-1 is required for clearance of goods under LUT or not.. also tell me on clearance of goods under LUT then do we need to debit duty in PLA/CENVAT.. or not..