CENTRAL EXCISE CLEARANCE PROCEDURES for Export in India Part 1

Posted on 10 April 2023 Category : Export India

The information provided here is part of Online export import training guide

Procedure for Central Excise Clearance Under Export Part 1

Central excise clearance is one of the procedures under exports and Imports in India. In this article, you will learn the procedures and formalities of central excise clearance under Export. Since export central excise clearance procedures and formalities may get amended time to time, you can update the rules and regulations of central excise in terms of export movement of goods.

Here we can discuss about various methods of central excise clearance procedures and formalities under export of goods.

Central Excise Clearance procedures Under Claim of Rebate (Without Examination)

Under this method, exporter pays excise duty and clears the goods on his own, without examination by the Central Excise Officer.

Application to Excise Authorities: The exporters are allowed to remove the goods for export, on their own, without getting the goods examined by the Central Excise officers. The application form – ARE-1 in such cases would be prepared in sixtuplicate, giving all particulars and declarations, after removal of goods. The exporter shall submit triplicate, quadruplicate, and sixtuplicate copies of ARE-1 to the Superintendent of Central Excise having jurisdiction over the factory or the warehouse, within twenty four hours of the removal of the consignment. He would retain the original and duplicate copies for presenting along with the consignment to the Customs Officer at the point of export.

Examination by the Central Excise:

The jurisdiction Superintendent of Central Excise shall examine the information contained in ARE-1 and verify the facts of payment of duty and other certificates/ declarations made by the exporter. After he is satisfied that the information contained in the ARE-1 is true, he will sign at appropriate places in the four copies of ARE-1 as under.

(i) Triplicate: to the rebate sanctioning authority viz. Maritime Collector of Central Excise or the Assistant Commissioner of the Central Excise as declared by the exporter on the ARE-1. This copy, on the request of exporter, may be sealed and handed over to the exporter / his authorized agent for presenting to the rebate sanctioning authority.

(ii) Quadruplicate: To the Chief Accounts Officer in the Commissionerate Headquarters.

(iii) Quintuplicate: Office copy to be retained by the Central Excise Officer.

(iv) SIXT plicate: To be given to the exporter.

Examination by Customs Authorities:

In this case, the customs authorities would invariably examine the goods, as excise authorities have not examined goods. The rest of the procedure is the same detailed in the earlier procedure for Central Excise clearance under Claim of Rebate (WITH EXAMINATION).

Procedure for Excise Clearance under Bond / Letter Undertaking

The procedure under this rule is similar to the one under claim for rebate. This is governed under Rule 13.

Under this rule, there is no PLA(personal Ledger Account) as no duty is paid. Instead of payment of duty, the manufacturer exporter executes bond/letter of undertaking to the amount equivalent to the excise duty. Bond can be executed with surety or without surety. Such a bond is to be supported by the bank guarantee to protect financial interests of excise department. Exporters of the following categories are allowed to execute bond with surety and do not have to furnish any bank guarantee or cash security.

Super Star Trading House

Star Trading House

Trading House

Export House

Registered Exporters (Registered with relevant Export Promotion Council)

Manufacturers registered with Central Excise Department.

Letter of Under taking by Manufacture- Exporter

Manufacturer-Exporter is neither needed to pay excise duty nor file the excise Bond.

Manufacturer-Exporter can obtain clearance of export shipment by producing Letter of Undertaking. This is a great concession to the manufacturer who directly exports the goods. Contd….. Part 2 Click here to read CENTRAL EXERCISE CLEARANCE PROCEDURES for Export in India – Part 2

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

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The above information is a part of Import Export course online

Procedure for Central Excise Clearance Under Claim of Rebate

2 CENTRAL EXCISE CLEARANCE OPTIONS for Exports in India

CENTRAL EXCISE CLEARANCE PROCEDURES for Export in India Part 1

CENTRAL EXCISE CLEARANCE PROCEDURES for Export in India Part 2

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Comments

david jeffrey: On 01 November 2013 Great article and thank you for such valuable information. Correct implementation of import export procedures helps businesses in gaining a competitive edge, scale new markets with ease, improved returns on investments etc. One may take guidance from experts such as Global4PL in order to avoid costly trade compliance penalties.

Sujatha Moorthy: On 30 November 2013 Useful information. However, one clarification sought is, whether it is true that for SSI units, the current exemption limit is upto Rs. 150 lacs. Kindly confirm. Also, what if the turnover is just Rs.2 to 3 lacs above the exempted limits and its liabilities and repurcussions if registration not applied for.

Narender Arora: On 03 February 2014 Great, thanks Sir for sharing such information free of cost, really useful

Surendran Kollerath: On 08 March 2014 Hi Sujatha Moorthy, Exemption limit under SSI units may vary time to time. You may contact concerned government authorities to get accurate information.

K, RAMAJAYAM: On 27 October 2014 Dear Sir, We need Submission of A.R.E.1 Copy to The Superintend office covering letter formet Thanks & Regards K. RAMAJAYAM

Rajesh M: On 03 November 2014 Dear Sir Please inform us the procedure of export clearance without ARE1 as we are not registered with Excise department. Thanks

Pradeep: On 11 February 2015 Hello sir, im pradeep from Puducherry. I'm one of your follower on howtoexportimport.com. I have a question sir. Does TIN number is necessary for a exporter? I'm a merchant exporter. I'm totally confused with it. Wait for your reply sir.

Sunil Pandya: On 28 May 2015 Garment exporter while exporting do not export their own brand, they fix importer's at europe's and USA Brand Label, they take job work from another unit, what is the excise procedure for them?

harshit jain : On 06 July 2015 I am working as a research associate with one of the best automotive components manufacturing company of India. My client is looking for investment opportunities in Russia and is interested in exporting manufactured goods from India. how one can export in Russia and what are the barriers we can face. It will be very helpful if you can provide me detailed information on this matter.

Murugan Naikar : On 08 July 2015 I wanted to start the pulses exports, I wanted to know what all registration is must and get the certificate for clearance

mukesh: On 14 July 2015 Hi i want to ask that in case if i purchase raw material and having some process on it and convert it to in other form by some converter.and it quantity is change.and i am taking service from some one else.so should i need to give bill for service at export time. for example i purchase paper reel for produce paper napkin and i give it to converter 9 ton for convert.and it give me back 8.5 ton with finished good product.i mean paper napkin. should i give bill for service?At the time of export and submit to custom clearance agent? Here i taking benefit of excise and cst and i also what to claim for draw back.

RAMESH KUMAR VERMA: On 02 October 2015 Sir, Please let me know that if used capital goods engaged in manufacturing for years say more than 10 years are now going to be exported to except Bhutan and Nepal through merchant exporter. Cenvat credit on these capital goods were availed by the assessee. Which excise form & bond will be needed for duty free export ?

anuj jain: On 13 October 2015 Hii sir, I am interested in export business . Can u please guide me the relevant products for exporting to Russia and nearby countries

SWATI: On 20 November 2015 Hello,Please guide me with the procedure to export goods to india as a merchant exporter..That means a company from One country purchasing goods from Manufacturer from other country n exporting the good to India . Thanks in advance .

nilesh: On 23 November 2015 Respected sir, Good Afternoon!! we are manufacturer and trading activity, if i want to export trading material. do i need to make ARE-1 for that. if no then please provide a notification for the same. we wait for your reply. Regards, Nilesh Patel

Bava Mohamed Ali: On 11 June 2016 Sir I am a merchant exporter in Kerala and need purchase excise duty payable item from Kolkata in this regarding where I am get CT1 and ARE 1 and bond etc

Rohan Garg: On 10 August 2016 We have been following your portal "Howtoexportimport.com" and we have found it very helpful for understanding the complexities of Import Export. We thank you for this knowledge sharing initiative. We are starting a new partnership firm Craft Connection which will be exporting wooden and metal handicrafts to Amazon warehouses USA. We are sending Our first consignment by UPS Air Courier Service & Amazon will be the ultimate consignee for our shipment but we have some doubts on IOR (Importer of record). Amazon don't act as an IOR. So this leaves us to either hire a US Customs Broker or act as IOR by ourselves. Also, we have a partner in US who has a Social Security Number. Kindly help us with below queries in this reference: 1. What will be better case for IOR: US Customs broker or we as foreign Importer? 2. Can we also make our US partner as IOR (Note that he is not officially a partner under partnership deed registration here in India)? 3. What procedural requirements are there to become an IOR in US? 4. Do we also require Import License or Import Number in US? 5. Do we require a Customs Bond (and of what cost) to be an IOR?

Praveen: On 10 August 2016 I am praveen located in coimbatore. Very much interested in export import business. Need some guide from where i have start the step. I haven't done any exports - interested in export-imports very much. Neeed your help and guide to proceed further.

Dizeeta Gudhka : On 11 August 2016 I want to order nootropics like Aniracetam, Noopept and Alpha GPC from USA for my personal use. I stay in Mumbai, Maharashtra, India and the Problem is those nootropics are not legal in India.For legality reasons they do not hide or relabel products. How can I get in India? Can you shed some light on this matter? And even there are no one in USA that resend me by discreet packing as a Gift.Please Suggest Solution.

: Sam Joel : On 12 August 2016 My heart full thanks to you sir for your wonderful service. It was so good that we could learn about export import easily with free of cost, while many are making all the way to earn money, you are doing this as service. Sir if you could give us some sample letters, how to write letter to write customs officers for their quieris. For example, technical write up letter, Amendment related, enhancement and some important letter format and sample letters, this would be very useful to us.

Alpesh Patel: On 17 August 2016 I am Alpesh Patel from Gujarat. I really say thank to you for your good work. I got some knowledge of export process from your website. i want to learn practically of export process but nobody will give me chance of their enterprise. I hope you will reply me as soon as possible.

Kisansinh Raulji: On 19 September 2016 I am Kisansinh Raulji from Vadodara, Gujarat, take Dealer registration from Central Excise, trading item procure from Import and Domestic, i get order export order from UAE, please give me procedure for export of treading item. please give me reply as early as possible.

Sudhir Kumar: On 19 January 2017 I am a registered trader in Delhi. We have rewarded a BHEL tender to supply a machine to NTPC on the behalf of BHEL. We will purchase machine from other manufacturer which will be supplied by us directly to NTPC but invoice will be raised to BHEL Original manufacturer is asking for ED @ 12.5% because he is registered under Excise. NTPC is giving us PAC form for excise exemption. My question is that can we pass that PAC form to the manufacturer in stead to pay excise @ 12.5% to the manufacturer ?? If, No, then please let us guide how we can exempt from ED ??? Thanks Sudhir Kumar

N DAS: On 01 March 2017 Dear Sir Our co is authorised dealer of certain manunafuacturers of Industrial products. We are not registered with Ex Authorities. An US based customer wants to procure from us at Nil tax and Ex Duty. They need the shipment to be done from the manufacturer to their work site at Malayasia. Can we take the order and remove materials w/out payment of tax and Ex duty?. Kindly guide us asap

Asha - Dev : On 03 April 2017 My name is Asa Dev and am working with a company producing engineering products based at Agra, U.P.. One of the raw materials come from Japan. Supplier has shipped a consignment on 22.12.2016, but we got the shipment advice only on 28.12.2016. Insurance is in our scope. Please guide me how to get marine insurance for this consignment. Best regards

Sanjay Khattar: On 11 June 2017 We are procuring excisable goods from one of our Third party manufacturer for export. We are shifting goods from A location(Third Party Manufacturer) to B location(My Location – not registered in Excise) and then finally export from Location B. There are two scenarios, 1. Removal of Goods post payment of Excise Duty from A location. 2. Removal of Goods without payment of Excise duty.

naresh: On 25 June 2018 Dear Sir, We need Submission of Meis Copy to The commissioner (customs)office covering letter formet Thank naresh.b

Bhatia: On 10 August 2018 Above article dated 30.4.18. it describes about ARE-1. ARE-1 is no more