Trade Notice No 66

SUB: C.Ex - Communication of Notification No. 43/2001- C.Ex (N.T) dated 26-06-2001 - Procedure for procurement of excisable goods for the manufacture of export goods.

Copy of Notification No. 43/2001 C.Ex(N.T) dated 26-06-2001 prescribing conditions, safeguards and procedures for procurement of of excisable goods without payment of duty for the purpose of use in the manufacture or processing of export goods and their export to any country except Nepal and Bhutan issued by the Government of India, Ministry of Finance, Department of Revenue New Delhi is communicated herewith for information.

The contents of the Trade Notice may be brought to the notice of all concerned.

G.S.R. In exercise of the powers conferred by of sub-rule (3) read with sub-rule (2) of rule 19 of the Central Excise (No.2) Rules, 2001, the Central Board of Excise and Customs hereby notifies the conditions, safeguards and procedures for procurement of the excisable without payment of duty for the purpose of use in the manufacture or processing of export goods and their exportation out of India, to any country except Nepal and Bhutan, namely: -

(i) the manufacturer or the processor intending to avail benefit of this notification shall register himself under rule 9 of the Central Excise No.2) Rules, 2001;

(ii) provisions of the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 shall be followed, mutatis mutandis;

(iii) the manufacturer or processor shall, while filing declaration under the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, also declare ratio of input and output and rate of duty payable on excisable goods to be procured without payment of duty;

(iv) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise shall also verify the correctness of the ratio of input and output and other particulars mentioned in the declaration filed before commencement of export of such goods. He may, if necessary, call for samples of finished goods or inspect such goods in the factory of manufacture for verifying the declarations. He shall, after being satisfied about the correctness of declarations, countersign the application in the manner specified in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001;

(v) The manufacturer or processor may remove the excisable goods so received as such or after these have been partially processed during the course of manufacture or processing of finished goods to a place outside the factory -

(a) for the purposes of test, repairs, refining, reconditioning or carrying out any other operation necessary for the manufacture or processing of the finished goods and return the same to his factory without payment of duty for further use in the manufacture or processing of finished goods or remove the same without payment of duty in bond for export, provided that the waste, if any, arising in the course of such operation is also returned to the said factory of the manufacture or processing; or

(b) for the purpose of manufacture of intermediate products necessary for the manufacture or processing of finished goods and return the said intermediate products to his factory for further use in the manufacture or processing of finished goods without payment of duty or remove the same, without payment of duty in bond for export, provided that the waste, if any, arising in the course of such operation is also returned to the factory of manufacturer or processor; and

(c) any waste arising from the processing of the excisable goods may be removed on payment of appropriate duty as if such waste is manufactured in the factory of the manufacturer or processor;

(vi) the goods shall be exported on the application in Form A.R.E. 2 specified in the Annexure and the procedures specified in Ministry of Finance (Department of Revenue) notification No.40/2001-Central Excise (N.T.) dated 26^th June, 2001or in notification No.42/2001-Central Excise dated 26^th June, 2001 shall be followed.

Explanation I: "Duty" for the purpose of this notification means duties of excise collected under the following enactments, namely: -

(b) the Additional Duties of Excise (Goods of Special Importance) Act,1957 (58 of 1957);

Form A.R.E. 2

Combined application for removal of goods for export under claim for rebate of duty paid on excisable materials used in the manufacture and packing of such goods and removal of dutiable excisable goods for export under claim for rebate of finished stage Central Excise Duty or under bond without payment of finished stage Central Excise Duty leviable on export goods.

1. Particulars of the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise from whom rebate shall be claimed / with whom bond is executed and his complete postal address __________________

2. I / We ______________ of ________________ propose to export the under mentioned goods (details of which are given in Table 1 below) to ____________________ (country of destination) by *air/sea / land /post parcel* under claim for rebate of duty paid on excisable materials used in the manufacture and packing of such goods.

We intended to claim the rebate of Central Excise Duty paid on clearances of goods for export under notification 40/2001-Central Excise (N.T) dated 26^th June, 2001 issued under Rule 18 of Central Excise (No.2) Rules, 2001.

The Export goods are intended to be cleared without payment of Central Excise Duty under notification 42/2001-Central Excise (N.T) dated 26^th June, 2001 issued under Rule 19 of Central Excise (No.2) Rules, 2001.

TABLE 1

*Strike out portion not applicable **Quantity of goods to be furnished in units of sale where it is different than weight. #Write NA where exports are under bond/letter of undertaking in terms of Rule 19 or where goods are not chargeable to duty

TABLE 2

Details of duty paid excisable Materials and Packing materials used in manufacture of export goods for which rebate under notification _________ dated _____ is being claimed

(a) We hereby certify that we have not availed facility of CENVAT credit under CENVAT Credit Rules, 2001

(b) We hereby declare that the export is not in discharge of export obligation under a Value based Advance Licence issued prior to 31.03.95

(c) We hereby declare that the materials on which input stage rebate in claimed are not sought to be imported under a Quantity Based Advance Licence issued prior to 31.03.95.

(d) We further declare that we shall not claim any Drawback on export of the consignment covered under this application.

(e) I / We hereby declare that the above particulars are true and correctly stated.

(f) We have been granted permission by Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise Vide C.No. __________ date __________ for working under Notification ____________ dated ______ .

Note 1: The A.R.E. 2 should be submitted by the manufacturer at least 24 hours intended removal of goods for export, to the superintendent of Central Excise.

Note 2 : A running serial of the factory starting with one every financial year should be allotted to every A.R.E. 2

PART A

*duty has been paid on the goods described above or duty is payable as recoded at entry number___ in Daily Stock Account.

*the owner has entered into B-1 bond No ____________ /given an Undertaking ______under Rule 19 of Central Excise (No.2) Rules, 2001 with the ____________________________ or *the finished goods being exported are not dutiable

2. Certified that I have opened and examined the packages No. ___________________ and found that the particulars stated and the description of goods given overleaf read with the invoice and the packing list (if any) correct *[and that all the packages have been stuffed in the container No. _______________ with Marks ________________]*and the same has been sealed with Central Excise Seal/*One Time Seal (OST) No. ________________

3. I have verified with the records, the declaration of the manufacture given at Sl. No. 3 overleaf regarding non availment of credit under rule CENVAT Rules and found it to be true.

4. Certified that I have drawn three representative samples from the consignment and have handed over two sets thereof duty sealed to the manufacturer/ his authorised representative. (wherever feasible)

5. Certified that the material consumption's indicated in Table 2 overleaf are in accordance with the declaration No. ________ filed by ________ on __________

Note 3 : The details given in table 2 may be verified by the Superintendent of Central Excise subsequent to clearances. For this purpose a detailed verification report may be submitted by the Superintendent to the Assistant Commissioner of Central Excise along with Triplicate copy of A.R.E. 2

Note 4 : The original -duplicate and sixtuplicate shall be returned to the manufacturer for presenting to the Customs Officer.

PART B

1. Certified that I have examined the consignment described overleaf, and the seals on the packages were found intact and I have satisfied myself that particulars of the consignment are as specified overleaf except for the shortages mentioned below:

____________________________________________________________________________________________________________

2. Certified that the exports are not under Duty Drawback Scheme. It is further certified that exports are not in discharge of export obligation under Value Based Advance Licence or a Quantity Based Advance Licence issued before 31.03.95.

3. Certified that all copies of Shipping Bill / Bill of export contain endorsement of A.R.E. 2 No. in the space provided for indicating ARE 1.

4. Certified that the consignment was shipped under my supervision under *Shipping Bill No. / Bill of Export No. ____________ dated _______________ which left for _________________ on _________________/ which passed the frontier on ____________

Duplicate copy of A.R.E. 2 Forwarded to Assistant/Deputy Commissioner of Central Excise …………. on ……………

Note 5 : The customs shall send the duplicate to the address given at Sl. No. 1 over leaf and handover original and sixtuplicate to the exporter

PART C*

Refund Order No. ______________ dated ______________ Rebate of Rs. ___________ (Rupees _____________ sanctioned vide cheque No. ___________ dated ____________

PART D

Refund Order No. _______________ dated ______________________ Rebate of Rs. ____________________ (Rupees ________________________________ sanctioned vide cheque No. ___________________ dated __________________