25 December 2015
Predominantly, the procedures and conditions for exports to all countries except Nepal and Bhutan are specified in Notification No. 42/2001-CE[NT] dated 26.6.2001.
An exporter shall execute bond in Form B1 or avail LUT facility. Only manufacturer exporter alone is eligible for LUT facility. The goods shall be exported within six months from the date on which they were cleared for export from the factory of production or manufacture or warehouse or other approved premises within such extended period as the Deputy/Assistant Commissioner of Central Excise or Maritime Commissioner may in a particular case allow;
When the export is from a place other than the registered factory or warehouse, the excisable goods are in original packed condition and identifiable as to their origin.
Forms to be used
ARE-1 is the export document for export clearance, which shall be prepared in quintuplicate[5 copies]. These documents shall bear a running serial number beginning from the first day of the financial year. The exporter is required to file certain basic details / declarations in the ARE-1. It should be signed by the exporter or his authorized agent. The different copies of ARE-1 should be of different colours as detailed below:
Original White Duplicate Buff Triplicate Pink Quadruplicate Green Quintuplicate Blue It will be sufficient if the copies of the ARE-1 contain a colour band on top or right hand corner in accordance with the above colour scheme.
Besides the above, an invoice under Rule-11 of the Central Excise Act also needs to be prepared.
Concept of Letter of Undertaking
The Letter of Undertaking [LUT] is to be furnished in the Form UT-1 as specified by the Board. It should be filed only to the jurisdictional Dy/Asst. Commissioners. It should not be filed before Maritime Commissioner or any other Officer authorized by the Board. An LUT shall be valid for 12 calendar months provided the exporter complies with the conditions of the LUT, especially the procedure for acceptance of proof of export. In case of persistent defaults or non-compliance causing threat to revenue, the manufacturer exporter be asked to furnish bond with security/surety.
The obligation of the manufacturer flows from statutory requirement of exporting the goods within six months or such extended period as the Dy./Asst. Commissioner of Central Excise may allow. Failing this, the exporter is required to deposit the requisite sum [duty and interest] suo motu considering that the manufacturer has to do “self assessment”. Such non-payment within 15days of expiry of the stipulated time period shall be treated, as arrears of revenue and the department will proceed to recover the same as sum due to the Government.
On repeated failure of the manufacturer exporter to comply with the conditions of Letter of Undertaking or the procedure for acceptance of proof of export, the jurisdictional authority may direct such defaulter in writing that the facility of LUT is not valid and he has to switch over to bond with surety/security procedure.
The LUT shall not be discharged unless the goods are duly exported to the satisfaction of the AC/DC of Central Excise within the time allowed for such export or otherwise accounted for to the satisfaction of such officer or until the full duties due thereon any deficiency of goods not accounted and interest if any has been paid. The LUT has to be renewed periodically by applying afresh before the jurisdictional authority by fulfilling the legal obligations.
The merchant exporters are required to file B-1 bond with security or surety. Specified categories/merchant exporters viz: status holders [Super Star Trading House, Star Trading House, Trading House, Export House] and exporters registered with recognized Export Promotion Councils would be exempted from furnishing security and or surety with the bond. The bond shall be in a sum equal to the duty chargeable on the goods for the due arrival of export goods at the place of export and subsequent export under customs area. The Officer who accepts the bond will be responsible for discharging that bond upon furnishing the proof of export by the exporter.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
25 December 2015
Sir many thanx for your valuable reply... Sir.. assume if i have obtained LUT. After that can i clear the excisable goods for exports under lut without payment of duty...
CAclubindia
