Duty drawback on export to nepal
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 September 2011
If the imported goods are exported to Nepal by road and the export sales involves no custom formalities or any such documents relating to export such as bill of export ot shipping bill etc, can duty drawback of custom duty paid on import be taken? The sale is classified in the books as export on the basis that they sold to a place outside India
05 September 2011
Export Destinations:
Drawback is not admissible on any goods exported by land to any place in Tibet or Sinkiang. It is also not granted on exports to Bhutan, Nepal and Myanmar (Burma) not made against irrevocable Letters of Credit in freely convertible currency. However, there are certain exceptions for which see Chapter 9.
FOR MORE INFO:
http://www.eximkey.com/contents/showpage1.asp?pageid=5729
Notification no. 208-Cus dated 1.10.1977, issued under Section 76(2) of the Customs Act, 1962 denies drawback on exports to Nepal.
Drawback is not admissible on any goods exported by land to any place in Tibet or Sinkiang. It is also not granted on exports to Bhutan, Nepal and Myanmar (Burma) not made against irrevocable Letters of Credit in freely convertible currency. However, there are certain exceptions for which see Chapter 9.
FOR MORE INFO:
http://www.eximkey.com/contents/showpage1.asp?pageid=5729
Notification no. 208-Cus dated 1.10.1977, issued under Section 76(2) of the Customs Act, 1962 denies drawback on exports to Nepal.
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05 September 2011
ALSO READ FOR INFORMATION:
http://bangalorecustoms.gov.in/notice%2096_2003.htm
http://bangalorecustoms.gov.in/notice%2096_2003.htm
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 September 2011
ok...so does that mean that if the exports to Nepal by road but against irrevocable LC in a freely converible currency, then the drawback can be availed? and What will be the procedure then as there are no export documentation to be used for drawback procudure like shipping bill etc.
05 September 2011
please also noted :
Export to Nepal is governed by special procedure provided in notifications issued under Rule 12 & 13. The procedure is as explained below
Notification no. 47/94-CE(NT) dated 22.9.94 – payment of rebate to His Majesty’s Government of Nepal.
Goods for export to Nepal are to be cleared from the registered factory on Nepal Invoice prepared in quadruplicate and marked ‘For Export to Nepal’ on payment of duty.
The Nepal Invoice is to be presented along with the goods to be exported before the Central Excise officer.
The Central excise officer shall verify the goods and seal the packages with the Central Excise seal. After making necessary endorsement on the Nepal invoice to this effect, he will hand over the original copy of the invoice to the exporter. Duplicate and triplicate copies of the Nepal invoice after being put in a sealed cover are handed over to the exporter for giving the same to the Customs officer incharge of the Land Customs Station, mentioned on the invoice and through which the goods are to be exported to Nepal.
On arrival at the Land Customs Station, exported goods are to be presented to the Customs officer along with the original copy of the Nepal invoice and sealed cover containing duplicate and triplicate copy of invoice. The Customs officer incharge, after verification of the goods with the invoice makes an endorsement on all copies of the invoice. The original copy is handed over to the exporter and the duplicate and triplicate copies are sent directly to the Nepalese Customs Officer incharge of the check post through which the goods are to be imported into Nepal.
The Nepalese Customs officer will return the duplicate copy of the invoice after endorsement regarding verification and allowing import into Nepal, to the Customs officer incharge at Indian Land Customs Station who is to forward the same to the Deputy Director of Inspection, Customs and Central Excise, Nepal Wing, for grant of rebate to His Majesty’s Government of Nepal.
Notification no. 51/94-CE (NT) dated 22.9.94 as amended – procedure for export to Nepal and Bhutan without payment of duty.
Export under bond without payment of duty to Nepal and Bhutan is subject to the following conditions
1. the payment for goods shall be in freely convertible foreign currency; and
2. the importer shall open an irrevokable letter of credit in favour of the exporter in India before the export takes place, subject to certain conditions prescribed in the notification.
The exporter is required to execute a bond under Rule 13 before the Assistant Commissioner of Central Excise having jurisdiction over the factory of the manufacturer or any other place from where the goods are to be exported and is required to furnish a certificate in Appendix 1 to the said notification from the Reserve Bank of India or any other bank duly authorised to deal in foreign exchange showing that full payment has been received.
On receipt of the said certificate and on completion of the conditions of the bond, the exporter shall be discharged of his liabilities under the bond. Capital goods are permitted to be exported to Nepal against any global tender invited by His Majesty’s Government of Nepal and the payment for which is received in the Indian currency, without payment of duty, subject to the condition that the exporter executes a bond and furnishes a certificate duly signed by the concerned Bank of India that full payment has been received in Indian currency by the said bank.
On receipt of such certificate and on completion of the conditions of the bond, the exporter is discharged of his liabilities under the bond.
The exporter is required to follow the procedure as provided in Appendix 2 to the said notification. The procedure is explained below
The exporter is required to make 6 copies of the invoice as prescribed in Annexure-A to the notification and make the following declaration on the same:
" I/We declare that the goods entered herein are intended for export to Nepal/Bhutan in bond, and shall not be diverted or delivered en route to any other country".
The exporter shall present all the 6 copies of the invoice duly filled in along with the goods before the proper officer of Central Excise. The proper officer after verification of the goods and sealing them would make an endorsement on all the copies of the invoices.
The original copy of the invoice is given to the exporter. Duplicate, triplicate and quadruplicate copies under sealed cover are given to the exporter for delivering the same to the Customs officer incharge of the Land Customs Station through which the goods are to be exported. The quadruplicate copy is forwarded to the Central Excise officer who has accepted the bond and quintuplicate copy is retained by the proper officer.
On arrival at the Land Customs Station, the goods are presented before the Customs officer incharge along with original copy of the invoice and the sealed cover containing copies of invoices.
The Customs officer, after verification of the goods with the invoices would make the endorsement on the invoice and hand over the original copy to the exporter. The duplicate and triplicate copies are sent directly to the Nepalese or Bhutanese, as the case may be, Custom officer incharge Land Customs Station through which the goods are to be imported into Nepal or Bhutan.
The Customs officer incharge of Land Customs Station at Nepal or Bhutan will return the duplicate copy of the invoice, after making an endorsement thereon regarding verification and allowing of import into Nepal or Bhutan, directly to the Customs officer incharge Land Customs Station in India.
The same is eventually forwarded to the Central Excise officer incharge of the factory or warehouse from where the goods were removed for export.
Proper marking of packages meant for export.
Rule 185 provides for legible marking of export packages in ink or oil colour with a progressive number commencing with the serial.no.1 for each calendar year and with the exporter’s name and special mark, if any.
Assessee seeking exemption from the provisions of Rule 185 are required to apply to the Assistant Commissioner of Central Excise having jurisdiction over the factory.
Checklist for export of goods under bond ( except to Nepal and Bhutan ).
Please check whether
1. the goods intended for export are permitted for export to the country to which exports are intended to be made and their export is not prohibited under any law for the time being in force;
2. the quantity of goods to be exported has been ascertained well in advance of the date of export;
3. the duty involved on the goods meant for export has been ascertained and appropriate bond covering the duty element has been furnished;
4. the inspection and sealing of the goods to be exported is desired in the factory or warehouse or other point of storage and not at the point of export.
1. in case the answer is yes, then:-
i) whether prior intimation of the intended export in the form AR-4 (in sixtuplicate) properly filled, has been submitted to the jurisdictional range Superintendent well in time i.e. at least 24 hrs. in advance;
ii) whether the goods to be exported have been inspected by the Central Excise officer and the packages containing such goods are properly sealed with the Central Excise seal;
iii) whether the packages in which the goods are to be exported are legibly marked in ink or oil colour or in such other durable manner with the progressive number commencing with number 1 for each calendar year and with the exporter’s name and special mark, if any.
Iv) whether the description of goods furnished in AR-4 corresponds the goods packed for export;
v) whether the particulars of goods in AR-4 correspond to the particulars in the shipping bill filed by the exporter;
vi) whether, on completion of inspection, the invoice has been prepared and issued for removal of goods in accordance with the AR-4 and bond amount and whether the duty amount has been incorporated in the AR-4;
vii) whether after inspection the packages of the goods intended for export, the necessary endorsement has been made by the Central Excise officer on the AR-4;
viii) whether original, duplicate and sixtuplicate copies of the AR-4 have been received from the Central Excise officer after proper endorsement.
2. If the examination of the goods is desired at the point of shipment, then:-
1. whether the original, duplicate and sixtuplicate copies of properly filled AR-4 along with the invoice and the goods have been sent to the place of export;
2. whether the triplicate, quadruplicate and quintuplicate copies of the AR-4 have been sent to the Range Superintendent within 24 hrs. of the removal of the consignment;
3. whether the condition given in iv), v) & vi) in para d A above have been complied with.
If required, the triplicate copy of AR-4, duly endorsed has been obtained from the Central Excise officer in a tamper proof sealed cover for delivery to the Assistant Commissioner of Central Excise or Maritime Commissioner, as the case may be.
1. the running bond account has been maintained properly and all the relevant entries have been made in the account;
2. the proof of export of a particular consignment has been obtained within a period of 6 months from the date of removal of the factory, warehouse or place of storage and is sent to the Central Excise officer within the stipulated period of 6 months.
for MORE INFO:
http://www.eximkey.com/contents/showpage1.asp?pageid=5729
http://airbridgecargo.com.np/contact.htm
Export to Nepal is governed by special procedure provided in notifications issued under Rule 12 & 13. The procedure is as explained below
Notification no. 47/94-CE(NT) dated 22.9.94 – payment of rebate to His Majesty’s Government of Nepal.
Goods for export to Nepal are to be cleared from the registered factory on Nepal Invoice prepared in quadruplicate and marked ‘For Export to Nepal’ on payment of duty.
The Nepal Invoice is to be presented along with the goods to be exported before the Central Excise officer.
The Central excise officer shall verify the goods and seal the packages with the Central Excise seal. After making necessary endorsement on the Nepal invoice to this effect, he will hand over the original copy of the invoice to the exporter. Duplicate and triplicate copies of the Nepal invoice after being put in a sealed cover are handed over to the exporter for giving the same to the Customs officer incharge of the Land Customs Station, mentioned on the invoice and through which the goods are to be exported to Nepal.
On arrival at the Land Customs Station, exported goods are to be presented to the Customs officer along with the original copy of the Nepal invoice and sealed cover containing duplicate and triplicate copy of invoice. The Customs officer incharge, after verification of the goods with the invoice makes an endorsement on all copies of the invoice. The original copy is handed over to the exporter and the duplicate and triplicate copies are sent directly to the Nepalese Customs Officer incharge of the check post through which the goods are to be imported into Nepal.
The Nepalese Customs officer will return the duplicate copy of the invoice after endorsement regarding verification and allowing import into Nepal, to the Customs officer incharge at Indian Land Customs Station who is to forward the same to the Deputy Director of Inspection, Customs and Central Excise, Nepal Wing, for grant of rebate to His Majesty’s Government of Nepal.
Notification no. 51/94-CE (NT) dated 22.9.94 as amended – procedure for export to Nepal and Bhutan without payment of duty.
Export under bond without payment of duty to Nepal and Bhutan is subject to the following conditions
1. the payment for goods shall be in freely convertible foreign currency; and
2. the importer shall open an irrevokable letter of credit in favour of the exporter in India before the export takes place, subject to certain conditions prescribed in the notification.
The exporter is required to execute a bond under Rule 13 before the Assistant Commissioner of Central Excise having jurisdiction over the factory of the manufacturer or any other place from where the goods are to be exported and is required to furnish a certificate in Appendix 1 to the said notification from the Reserve Bank of India or any other bank duly authorised to deal in foreign exchange showing that full payment has been received.
On receipt of the said certificate and on completion of the conditions of the bond, the exporter shall be discharged of his liabilities under the bond. Capital goods are permitted to be exported to Nepal against any global tender invited by His Majesty’s Government of Nepal and the payment for which is received in the Indian currency, without payment of duty, subject to the condition that the exporter executes a bond and furnishes a certificate duly signed by the concerned Bank of India that full payment has been received in Indian currency by the said bank.
On receipt of such certificate and on completion of the conditions of the bond, the exporter is discharged of his liabilities under the bond.
The exporter is required to follow the procedure as provided in Appendix 2 to the said notification. The procedure is explained below
The exporter is required to make 6 copies of the invoice as prescribed in Annexure-A to the notification and make the following declaration on the same:
" I/We declare that the goods entered herein are intended for export to Nepal/Bhutan in bond, and shall not be diverted or delivered en route to any other country".
The exporter shall present all the 6 copies of the invoice duly filled in along with the goods before the proper officer of Central Excise. The proper officer after verification of the goods and sealing them would make an endorsement on all the copies of the invoices.
The original copy of the invoice is given to the exporter. Duplicate, triplicate and quadruplicate copies under sealed cover are given to the exporter for delivering the same to the Customs officer incharge of the Land Customs Station through which the goods are to be exported. The quadruplicate copy is forwarded to the Central Excise officer who has accepted the bond and quintuplicate copy is retained by the proper officer.
On arrival at the Land Customs Station, the goods are presented before the Customs officer incharge along with original copy of the invoice and the sealed cover containing copies of invoices.
The Customs officer, after verification of the goods with the invoices would make the endorsement on the invoice and hand over the original copy to the exporter. The duplicate and triplicate copies are sent directly to the Nepalese or Bhutanese, as the case may be, Custom officer incharge Land Customs Station through which the goods are to be imported into Nepal or Bhutan.
The Customs officer incharge of Land Customs Station at Nepal or Bhutan will return the duplicate copy of the invoice, after making an endorsement thereon regarding verification and allowing of import into Nepal or Bhutan, directly to the Customs officer incharge Land Customs Station in India.
The same is eventually forwarded to the Central Excise officer incharge of the factory or warehouse from where the goods were removed for export.
Proper marking of packages meant for export.
Rule 185 provides for legible marking of export packages in ink or oil colour with a progressive number commencing with the serial.no.1 for each calendar year and with the exporter’s name and special mark, if any.
Assessee seeking exemption from the provisions of Rule 185 are required to apply to the Assistant Commissioner of Central Excise having jurisdiction over the factory.
Checklist for export of goods under bond ( except to Nepal and Bhutan ).
Please check whether
1. the goods intended for export are permitted for export to the country to which exports are intended to be made and their export is not prohibited under any law for the time being in force;
2. the quantity of goods to be exported has been ascertained well in advance of the date of export;
3. the duty involved on the goods meant for export has been ascertained and appropriate bond covering the duty element has been furnished;
4. the inspection and sealing of the goods to be exported is desired in the factory or warehouse or other point of storage and not at the point of export.
1. in case the answer is yes, then:-
i) whether prior intimation of the intended export in the form AR-4 (in sixtuplicate) properly filled, has been submitted to the jurisdictional range Superintendent well in time i.e. at least 24 hrs. in advance;
ii) whether the goods to be exported have been inspected by the Central Excise officer and the packages containing such goods are properly sealed with the Central Excise seal;
iii) whether the packages in which the goods are to be exported are legibly marked in ink or oil colour or in such other durable manner with the progressive number commencing with number 1 for each calendar year and with the exporter’s name and special mark, if any.
Iv) whether the description of goods furnished in AR-4 corresponds the goods packed for export;
v) whether the particulars of goods in AR-4 correspond to the particulars in the shipping bill filed by the exporter;
vi) whether, on completion of inspection, the invoice has been prepared and issued for removal of goods in accordance with the AR-4 and bond amount and whether the duty amount has been incorporated in the AR-4;
vii) whether after inspection the packages of the goods intended for export, the necessary endorsement has been made by the Central Excise officer on the AR-4;
viii) whether original, duplicate and sixtuplicate copies of the AR-4 have been received from the Central Excise officer after proper endorsement.
2. If the examination of the goods is desired at the point of shipment, then:-
1. whether the original, duplicate and sixtuplicate copies of properly filled AR-4 along with the invoice and the goods have been sent to the place of export;
2. whether the triplicate, quadruplicate and quintuplicate copies of the AR-4 have been sent to the Range Superintendent within 24 hrs. of the removal of the consignment;
3. whether the condition given in iv), v) & vi) in para d A above have been complied with.
If required, the triplicate copy of AR-4, duly endorsed has been obtained from the Central Excise officer in a tamper proof sealed cover for delivery to the Assistant Commissioner of Central Excise or Maritime Commissioner, as the case may be.
1. the running bond account has been maintained properly and all the relevant entries have been made in the account;
2. the proof of export of a particular consignment has been obtained within a period of 6 months from the date of removal of the factory, warehouse or place of storage and is sent to the Central Excise officer within the stipulated period of 6 months.
for MORE INFO:
http://www.eximkey.com/contents/showpage1.asp?pageid=5729
http://airbridgecargo.com.np/contact.htm
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