Export procedure

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This query is : Resolved

CA. Niranjan Kumar (Querist)

06 August 2011 is the following situation legally possible under central Excise Rule, 2002:-

(1)procure the material without paying the duty under rule 19 and export the final product after paying duty and then claim the refund of duty paid on final product under rule 18 of central excise rule, 2002.

(2)procure the material after paying the duty and then claim the refund of duty paid on material under rule 18 of central excise rule, 2002 export the final product without paying duty under rule 19.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

06 August 2011 Exports are free from taxes and duties.

· Goods can be exported without payment of excise duty under bond under rule 19 or under claim of rebate of duty under rule 18.

· Container containing export goods should be sealed by excise officer. Self-sealing is permissible.

·Excisable Goods should be exported under cover of Invoice and ARE-1 form. Export should be within 6 months from date of clearance from factory.

·Merchant exporter has to execute a bond and issue CT-1 so that goods can be cleared without payment of duty. Manufacturer has to issue Letter of Undertaking.

·Export to Nepal/Bhutan are required to be made on payment of excise duty, except when supply is against international bidding.

· Rebate under rule 18 can be either of duty paid on final products or duty aid on inputs but not both.

· EOU has to issue CT-3 certificate for obtaining inputs without payment of excise duty.

FOR MORE INFORMATION LINK ARE :-

https://www.cbec.gov.in/excise/cx-forms/return.pdf

https://www.cbec.gov.in/excise/cx-act/notfns-2k4/cent21-2k4.htm

https://www.cbec.gov.in/excise/cx-act/notfns-2k4/cent19-2k4.htm

https://www.eximguru.com/exim/central_excise/central-excise-manual/export-under-claim-for-rebate.aspx]

CA. Niranjan Kumar

CA. Niranjan Kumar (Querist)

06 August 2011 sir i could not understand your reply. please let me know that-
Both situation mentioned by me is valid, or
situation 1 is valid, or
situation 2 is valid, or
neither of them is valid.

Thank You
Niranjan

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)

06 August 2011 as per rule 19:

(1) Any excisable goods may be exported without payment of duty from a factory of the producer or the manufacturer or the warehouse or any other premises, as may be approved by the Commissioner.

(2) Any material may be removed without payment of duty from a factory of the producer or the manufacturer or the warehouse or any other premises, for use in the manufacture or processing of goods which are exported, as may be approved by the Commissioner.

(3) The export under sub-rule (1) or sub-rule (2) shall be subject to such conditions, safeguards and procedure as may be specified by notification by the Board.

CA. Niranjan Kumar

CA. Niranjan Kumar (Querist)

07 August 2011 sir, i want to know that can combination of rule 19 and rule 18 together be used in export procedure or not?

i.e
procure the material without paying the duty under rule 19(2)

manufacture the FP after using such material

export the final product after paying duty and then claim the refund of duty paid on final product under rule 18

Thank You
Niranjan

U S Sharma

U S Sharma (Expert)

08 August 2011 when the materials are procured without payment of duty, then export should be without payment of duty, enabling to discharge the duty liabiliy of goods procured.

once duty is paid from PLA, whole the procedure get mixed up and rebate sanction will face trouble.

Message likes : 1 times

CA. Niranjan Kumar

CA. Niranjan Kumar (Querist)

09 August 2011 sir,
i understand that rebate sanction will face problem, as you said, but i want to know that legally it is possible or not? if not, then why?

U S Sharma

U S Sharma (Expert)

10 August 2011 when the materials are procured without payment of duty, the goods so exported will carry documents for discharge of duty liability used in the export consignment.

another ARE-1 for duty rebate....................?? where it should be posted in shipping bill? and how the customs authorities will handle the two duty engagement documents for one consignment?

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