Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject : Simplification of Export Procedure - Procedure when bonds can be furnished with Deputy/Assistant Commissioner of Central Excise - Reg.
It has been brought to the notice of the Board that under the existing procedure, the merchant exporters including those manufacturer-exporters, who have to procure the excisable goods for export under bond manufactured in different parts of the country, have to furnish several bonds with the Deputy/Assistant Commissioner of Central Excise of the supplier's area and submit proof of exports for discharge of such bonds and thus, it is a large documentation and time-consuming procedure. The alternative procedure of acceptance of a consolidated bond with the Maritime Commissioner is also cumbersome and inconvenient because there are limited number of Maritime Commissioners and for every export supply a debit certificate has to be obtained from the Maritime Commissioner.
2. The matter has been examined by the Board. It is recognized that the Indian industry is growing in the inland areas and the growth of industries is no more limited to hinterland of a sea port. There has been considerable growth of exports from Inland Container Depots and the Air Cargo Units located in the inland areas, and the same is likely to grow even at faster rate in future. In this scenario, it is felt necessary to modify the Central Excise procedures to facilitate exports.
3. As a measure of simplification of the export procedures, it has been decided that Commissioner of Central Excise (excluding those under whose jurisdiction the office of Maritime Commissioner already exist) will designate one Deputy/Assistant Commissioner of a Central Excise as "Deputy/Assistant Commissioner of Central Excise (Exports)" who will discharge a similar function as being discharged by the existing Maritime Commissioners, so far the exports under rules 13(1)(a) and rule 14 are concerned. The procedure will be as follows:-
(1) Any merchant
exporter/manufacturer-cum-merchant exporter (hereinafter referred
to as "the exporter") can file a Bond under
rule 13(1)(a) or a General Bond under rule 14 of the Central Excise Rules, 1944 with the designated Deputy/Assistant Commissioner of Central Excise (Export) under whose jurisdiction his Head Office/factory is located (within the jurisdiction of the Commissionerates). The bond will be furnished along with security/bank guarantee equal to 10% of the bond amount unless the exporter is exempted from furnishing such security by the Commissioner in terms of Board's Circular No. 284/118/96-CX dated 31/12/96. (as modified -to add "Trading Houses"). To reiterate the relevant provisions of Circular No. 284/118/96, supra, it is stated that the Circular exempts Super Star Trading House, Star Trading House, Trading House, Export House, Registered Exporters (Registered with the relevant Export Promotion Council), manufacturers registered with the Central Excise Department, subject to the conditions that - (i) the exporters have not come to the adverse notice of the Department in last three years, (ii) all the formalities required under Central Excise Act and Rules related to exports are regularly complied with and (iii) a copy of the registration-cum-membership certificate (RCMC), duly attested by the exporter is submitted. The exemption from giving security/sureties can be withdrawn without prior notice to any exporter if he comes to the adverse notice of the Department.
(2) The exporter can procure the goods from a factory located anywhere in India.
(3) In the cases where B1 bond is executed for specific consignment before the Deputy/Assistant Commissioner of Central Excise (Export), the exporter should obtain an attested photocopy of bond duly accepted by such Deputy/Assistant Commissioner of Central Excise and produce the same to the Superintendent of Central Excise having jurisdiction over the factory/approved place of storage from where the goods have to be removed for export, at the time of presentation of AR-4.
(4) Where a consolidated B1/B16 general bond is executed, the exporter shall request in writing in the proforma given in Annexure-I, the Deputy/Assistant Commissioner of Central Excise (Export) [with whom he has furnished the bond] for issue of a certificate of provisional debit in the Running Bond Account maintained in the Divisional Office. The Duplicate copy will be retained by the Divisional Office and the original & triplicate copies will be handed over to the exporter. The original copy will be presented to the Superintendent having jurisdiction over the factory of export goods. The triplicate copy will be for exporter's records.
(5) The format of Running Bond Account will be the same as given in Circular No. 87/87/94-CX, ibid. The provisional debit/credit entry should be clearly indicated, and fact of its conversion into actual debit/credit should be recorded in remarks column with date and the Deputy/Assistant Commissioner of Central Excise (Export) will initial on cash such entry in relevant column.
(6) The certificate will have to be produced by the exporter before the Superintendent of Central Excise at the time of presentation of AR-4 for signature in cases where the exports are being effected under the examination and sealing of the consignment in the factory/approved premises by the jurisdictional Central Excise officer.
(7) Where the exporter intends to clear the goods under the self-removed or Self-certification procedure, he will submit this certificate within 24 hours of removal along with the requisite copies of AR-4. The Superintendent will endorse on the triplicate, quadruplicate, quintuplicate and sixtuplicate copies of AR-4 (At Sl.No.1 of Part-A) the details of bond bases on the certificate and dispose of the AR-4 as specified in existing instructions.
(8) The provisional debit shall be converted into actual debit on the basis of Central Excise duty (corresponding to the quantity & value), mentioned in AR-4 (triplicate copy), received from the jurisdictional Central Excise Range Office (place of removal for export).
4. The document for proof of export shall be filed before the Deputy/Assistant Commissioner of Central Excise (Export) with whom the bond is executed and the usual procedures as contained in Paras 10.1, 10.2 and 10.4 of Circular No. 87/87/94-CX supra, shall be followed.
5. The Deputy/Assistant Commissioner with whom bond is executed, may also make Block Transfer in favour of the Deputy/Assistant Commissioner of Central Excise having jurisdiction over the factory, and entire procedure related to Block Transfer contained in Circular No. 87/87/94-CX, supra, will apply, mutatis mutandis.
6. Except as provided or hereinbefore, all the instructions contained in Circular No. 87/87/94 supra, as amended from time to time by other instructions of the Board, will continue to be followed.
7. It is specifically clarified that the above procedure shall be in addition to the existing procedure of furnishing bond with -
(a) the Maritime
(b) with the deputy/Assistant Commissioner having jurisdiction over the factory from which the export goods are cleared.-
(i) by merchant exporters themselves
(ii) by manufacturers on behalf of a merchant exporter.
8. The trade and field formations may suitably be informed. Any difficulties noticed in this regard may be brought to the notice of the Board immediately.
9. Receipt of this Circular may please be acknowledged.
10. Hindi version will follow.
Under Sectretary (CX.6)
Annexure - I
The Assistant Commissioner of Central Excise,
I intend to export excisable goods. The details are as under : -
Manufacture's Name & factory address
(Having jurisdiction over the factory of manufacture)
|Sr. No.||Description of Goods||Quantity||Value||Rate of Duty||Duty Involved|
IV. Total duty involved (In words & figures)
I have furnished bond*, which was accepted by you in F.No. . You are requested to issue provisional Debit certificate of the duty men mentioned at IV. above.
FOR DEPARTMENTAL USE ONLY
certified that M/s
has furnished a
bond* for Rs.
in balance. A credit of Rs.
) has been made. Exporter may be permitted to clear goods on AR-4 without
duty for export under 13 of the Central Excise Rules, 1944.
(Signature of the Assistant
Note : *Specify the type of bond.