The information provided here is part of Import Export Training online




An exporter has two options to claim central excise clearance.


They are Export under claim of Rebate of Duty and Export under Bond/Letter of Undertaking


Both the merchant exporter and manufacturer exporter can avail of both the above options for clearance of excisable goods.


Export Under Claim of Rebate of Duty

Under this method, the exporter has to pay excise duty, initially, and can claim refund of excise duty, after exportation of goods to countries except Nepal and Bhutan. However this method involves blockage of finances as the procedure involves time for getting back refund of excise duty. Excise procedure is governed under Rule 12.


Where there is balance in Capital Goods Cenvat Credit, it is ideal to use that amount first towards clearance of goods for export.



Exporter can request clearance of goods either with examination or without examination by central excise authorities. Once the central excise authorities make examination, customs authorities may not inspect the goods; before giving customs clearance, if they are satisfied that the seals are not broken. If the exporter desires that the goods may not be examined by the customs authorities at the port/airport of shipment, he should apply for clearance under examination. Excise clearance, after examination is also known as excise clearance under seal.


Export Under Bond / Export under Letter of Undertaking LOU.


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.  Also read How does CENVAT Credit work?    Central excise clearance  options   CENTRAL EXERCISE CLEARANCE PROCEDURES for Export in India – Part 2    CENTRAL EXERCISE CLEARANCE PROCEDURES for Export in India – Part 1    Procedure for Central Excise Clearance Under Claim of Rebate


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santhosh: Really This website has tought me in every thing regarding Customs EXPORT clearance and More. I should Appreciate for giving information to every one. Please keep going

komal: Thank you so much for giving this kind of articles, as it is very helpful for us..& it's also very easy to understand...

Souradeep: Thank you for sharing your knowledge about exports and imports. It helps us a lot in understanding the Procedures and Formalities behind trade.

Arun Kumar: I have recently registered a Private limited company and have applied for IEC code as merchant exporter. Which is also received.I am planning to start export business in garments and leather products. I am bit confused that what all registration should I need before exporting. Do I need to have TIN / CST / VAT number? Do I need to register with export promotion council? Do I need to show manufacturer's invoice in customs as well?

Admin: Hi Arun Kumar, You may consult a professional to support your project

Somaraj Nair: I want to purchase excisable goods from a manufacturer for export. The manufacturer is not an exporter. They are ready to give me the material, but without payment of excise duty. What is the procedure to be followed.

MONIKA SHARMA : I want to start my import business. I learn lot of things from your site which motivates me to start my own business. i also completed export management and Custom and central excise course from Bangalore. Please help me to start my business by giving the solution of how to calculate duty on import and what are the duties levied when we import goods from Malaysia and Thailand.

pravin Mecwan : Please advice me for rebate claim procedure for Nepal Export.

Gopal Malani: Very Nice Article. Clear understanding but it can be improved by adding some more content.

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