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Export Under Claim of Rebate of Duty under Central Excise.
Procedure for Central Excise Clearance Under Claim of Rebate(With Examination)
Application to the Central Excise :
The exporter is required to submit application in ARE-1. In sixtuplicate (six copies) to the Superintendent or Inspector of Central Excise having jurisdiction over the factory or warehouse of the exporter at least twenty four hours before the removal for inspection. However, where exporter is unable to give 24 hours advance notice to the superintendent of Central Excise, his request for inspection with a shorter notice also is, normally, accepted.
The different copies of ARE-1 forms are of different colors, indicated below:
Original - White
Duplicate - Buff
Triplicate - Pink
Quadruplicate-Green
Quintuplicate - Blue
Sixtuplicate - Yellow
It will be sufficient if the copies of ARE-1 contain a color bank on the top or right had corner in accordance with above color scheme. ARE-1 is introduced in place or earlier AR-4 and AR- 5 forms.
Inspection by the Central Excise:
The Superintendent of Central Excise may depute an Inspector of Central Excise or he may go for examination of the export consignment and sealing. Where the ARE-1 indicates that the export is in discharge of an export obligation under a Quantity-based Advance Licence issued under the Duty Exemption Scheme, the consignment should invariably be examined and sealed by the Superintendent of Central Excise himself.
Samples :
The Central Excise Officer, after examining the consignment, would draw samples wherever necessary, in triplicate. He would hand over two sets of samples, duly sealed, to the exporter or his authorized agent, for delivering to the Customs Officers, at the point of export. He would retain the third set for his records.
Markings:
The packages in which the goods are to be exported would be legibly marked as “export cargo” in ink or oil color or in such other durable manner with progressive number commencing with No.1 for each calendar year and with the exporter’s name. these marks and numbers are to be specified on all the six copies of ARE-1 forms.
Personal Ledger Account:
Excise authorities maintain Personal Ledger Account manufacturer-wise. Amount paid by the exporter towards excise duty would be credited to the exporter’s account. As and when the excise authorities clear goods, applicable excise duty is debited to the Personal Ledger Account and balance is arrived at. The procedure is similar to a current account maintained with a bank.
Option for Claim of Rebate:
Exporter has the option to name Maritime Commissioner or jurisdictional Assistant Collector of Central Excise for claimed rebate of excise.
Where the export is from any of the port, airport or post office falling within the jurisdiction of Maritime Collector of Central Excise, option is available to file claim of rebate before such Maritime Collector of Central Excise or the Jurisdictional Assistant Collector of Central Excise. For this purpose, exporters are required clearly indicate their option on ARE-1 along with complete postal address of the authority from which the rebate shall be claimed.
Exporter should be advised to take adequate care in filling up the ARE-1 form. The rebate sanctioning authority along with its complete postal address should be clearly mentioned at appropriate place in the ARE-1. The applicable portions should be carefully retained and inapplicable portion struck off.
Processing by Excise Authorities:
After verifying the details contained in the documents, the Range Superintendent of Central Excise allows clearance of the cargo from the factory/ warehouse for onward transmission to the port of shipment .Following endorsement is to be given in all copies of ARE-1 form:
“Allowed for export under claim for Central Excise Rebate”
The original, duplicate and sixth copies of ARE -1 form are handed over to the exporter. The triplicate copy is sent to the Maritime Central Excise Collectorate Refund section, having jurisdiction over the port, wherefrom the goods are to be shipped. 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. The fourth copy is sent to the Chief Accounts Officer(CAO) of the Maritime Central Excise Collectorate concerned. The Range Superintendent, for his record and future reference, retains the fifth copy.
Examination of Goods by Customs Authorities:
The exporter/ his authorized agent shall present original, duplicate and sit plicate copies of the ARE-1 to the Customs Officer at the point of export along with the goods, Shipping Bill/ Bill of Export and samples sealed by the Central Excise Officer. These document show the evidence of excise duty payment to the customs authorities. The export consignment shall be checked by the Customs Officer to see whether the seals are intact and the marks and number tally. If they are found in order, customs may allow exports after ensuring that the No. of the ARE-1 has been indicated in the Shipping Bill or the Bill of Export, as the case may be. The samples shall be dealt in accordance with instructions/ standing orders of the Collector of Customs or the Central Board of Excise and Customs. After the goods have been shipped, the concerned officer of Customs would make necessary endorsement in the original , duplicate and sixtuplicate copies of the ARE-1 at appropriate places and put his stamp with his name and designation below his signature. He shall dispose off the copies of ARE-1 in the following manner:
Original and Sixtuplicate : To be handed over to the Exporter. Original shall be used for filling rebate claim.
Duplicate: Customs sends this copy to Rebate Sanctioning Authority, declared on ARE-1. This copy on a request of exporter may be sealed and handed over to the exporter/his authorized agent for presenting to the rebate sanctioning authority.
Sixtuplicate copy: Used for claiming incentives (duty drawback).
Submission of Rebate Claim:
Depending upon the exporter’s option declared on the ARE-1, the claim should be filed with the jurisdiction of Maritime Collector of Central Excise or with Assistant Collector of Central Excise having jurisdiction on the factory of the exporter for claiming the rebate of excise duty on goods exported.
The following documents need to be filled for claiming rebate:
(a) Application in prescribed form – Form C (in triplicate)
(b) Duplicate copy of ARE-1 in sealed cover received from Customer Officer
(c) Copy of Bill of Lading, duly attested by customs
(d) Copy of shipping bill (exporter promotion copy), duly attested by customs
(e) Original copy of duly ARE-1 duly endorsed by the Customs Officer.
(f) Disclaimer certificate in case where the claimant is other than the exporter.
Sanction of Rebate Claim:
The claim has to be filled within six months form the date of excise clearance from the factory for the purpose of shipment i.e. time prescribed under section 11B of Central Excise and Salt Act.
The maritime Collector or Assistant Collector, Central Excise would verify and compare the original copy of ARE-1 received from Customs Officer and triplicate copy of ARE-1 received from Range Superintendent Central Excise. If the claim is in order, he will order for sanction or rebate, either in part or in full.
The rebate claim can also be claimed by electronic declaration on Electronic Data Inter-change (EDI) System.
Discrepancy in Documents:
The rebate sanctioning authority should point out deficiency, if any,, in the claim within 15 days of lodging the same and ask the exporter to rectify.
Interest on Duty:
The excise department should make the refund within a period of 3 months from the date of receipt of claim. In case of delay, interest @ 20% will be paid from the date of expiry of three months to the actual date of payment. This interest provision is really beneficial to expedite refund, as interest would be a burden to the department, in particular the above interest rate is higher than the prevailing bank interest rate.
Cancellation of Documents:
In case export of goods does not take place, excise department cancels the documents, at the request of the exporter. Also read Procedure for Central Excise Clearance Under Claim of Rebate How does CENVAT Credit work? 2 CENTRAL EXCISE CLEARANCE OPTIONS for Exports in India
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The above information is a part of Export Import Training online
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