Export under claim of rebate under Rule 12 (1) Procedure - Regarding - Central Excise - 81/81/94-CX

Export under claim of rebate under Rule 12 (1) Procedure - Regarding Circular No. 81/81/94-CX Dated 25-11-1994 [From F. No. 209/18/93-CX.6 (Pt.)] Government of India Ministry of Finance (Department of Revenue), New Delhi Subject : Export under claim of rebate under Rule 12 (1) Procedure - Regarding. 1.1 Attention of Collectors is invited to Board's telex F. No. 209/18/93, dated 26-9-1994 27-9-1994 communicating the issue of fresh rules and notifications relating to exports. 1.2 The new Central Excise Rule 12 (1) (a) has been framed to grant rebate of duty paid on export of duty paid goods. The new Rule 12 (1) (a) corresponds to the earlier Rule 12 of the Central Excise Rules. The fresh Notification No. 41/94 has been issued under the new Rule 12 (1) (a) which permits grant of rebate on all excisable goods except mineral oil and goods supplied as ship stores. Under the Notification No. 41/94, the facility of rebate is available on export of goods to all countries other than Nepal and Bhutan. 2.1 The salient features of the new Rules and Notifications issued thereunder are briefly summarised below :- 2.2 Self Removal Procedure Now the exporters are being allowed to take clearances for export without the presence and examination of cargo by the Central Excise Officer. 2.3 AR 4 and AR 4A are merged The existing AR 4 and AR 4A forms have been merged. Now only one single type of AR 4 is required to be filed by exporters in all the situations namely : - Export clearances on their own without examination by the Central Excise Officer whether under claim for rebate or under bond. - Export clearances under Central Excise seal whether under claim for rebate or under bond. A copy of the AR 4 is enclosed. 2.4 Option of claiming rebate either from Maritime Collector or jurisdictional Assistant Collector of Central Excise. (a) The number of Maritime Collectors has been reduced to seven (b) 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 to clearly indicate their option on AR 4 along with complete postal address of the authority from whom the rebate shall be claimed. 3.1 The following consolidated instructions are issued with regard to grant of rebate of Central Excise Duty paid on the goods exported to countries other than Nepal and Bhutan. The earlier instructions, on the subject which are inconsistent with these instructions, the new rules and the notifications issued thereunder may be treated as withdrawn. 4.0 The removal of goods under claim of rebate from a factory or warehouse without examination by the Central Excise Officers. 4.1 The exporters are now allowed to remove the goods for export on their own without getting the goods examined by the Central Excise Officers. The AR 4 in such cases would be prepared in sixtuplicate, giving all particulars and declarations. The exporter shall deliver triplicate, quadruplicate, quintuplicate and sixtuplicate copies of AR 4, to the Superintendent of Central Excise having jurisdiction over the factory or the warehouse, within twenty four hours of the removal of the consignment and would retain the original and duplicate copies for presenting along with the consignment to the Customs Officer at the point of export. 4.2 The jurisdictional Superintendent of Central Excise shall examine the information contained in AR 4 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 AR 4 is true, he will sign at appropriate places in the four copies of AR 4 submitted to him and put his stamp with his name and designation below his signature. He would then dispose of the triplicate, quadruplicate, quintuplicate and sixtuplicate copies of AR 4 as under :- (i) Triplicate To the rebate sanctioning authority viz. Maritime Collector of Central Excise or the Assistant Collector of Central Excise declared by the exporter on the AR 4. 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 Collectorate Headquarters. (iii) Quintuplicate office copy to be retained by the Central Excise Officer. (iv) Sixtuplicate To be to given to the exporter. 5.0 Procedure for exports under Central Excise seal 5.1 Where the exporter desires the sealing of the goods by the Central Excise Officers so that the export goods may not be examined by the Customs officers at the Port/Airport of shipment, he should present an AR 4 application in sixtuplicate to the Superintendent of Central Excise having jurisdiction over the factory/warehouse at least twenty four hours before the intended removal of the export goods from the factory/warehouse. However, where exporter is unable to give 24 hours advance notice to the Superintendent of Central Excise, his request for shorter notice should normally be accepted. All such relaxations shall be reported to the Assistant Collector of Central Excise for ex post facto approval. Collectors of Central Excise may delegate powers under Rule 187 to the Assistant Collectors of Central Excise. 5.2 The Superintendent of Central Excise may depute an Inspector of Central Excise or may himself go for sealing and examination of the export consignment. Where the AR 4 indicates that the export is in discharge of an export obligation under a Quantity-based Advance Licence or a Value-based Advance Licence issued under the Duty Exemption Scheme, in such cases the consignment should invariably be examined and sealed by the Superintendent of Central Excise himself. 5.3 The Central Excise Officer 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. 5.4 The export consignment should be carefully examined vis-a-vis description of goods, their value and other particulars/declarations on the AR 4. The Central Excise Officer shall 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 AR 4 is true he would allow the clearances and also sign all the six copies of the AR 4 at appropriate places and put his stamp with his name and designation below his signature. The copies of AR 4 would be disposed of as under : Original and Duplicate : To the exporter for presenting to Customs Officer at the point of export along with the export consignment. Triplicate: To the rebate sanctioning authority i.e. Maritime Collector of Central Excise or the jurisdictional Assistant Collector of Central Excise, as declared by the exporter on the AR 4. The Central Excise Officer may hand over this copy under a sealed cover on exporter's request. Quadruplicate : To the Chief Accounts Officer at his Collectorate Headquarters. Quintuplicate : To be retained for records. Markings 6.1 The packages in which the goods are to be exported would be legibly marked in ink or oil colour or in such other durable manner with progressive number commencing with No. 1 for each calendar year and with the exporter's name. AR 4 Form : 7.1 The Different copies of AR 4 forms should be of different colours indicated below:- i. Original - White ii. Duplicate - Buff iii. Triplicate - Pink iv. Quadruplicate - Green v. Quintuplicate - Blue vi. Sixtuplicate - Yellow It will be sufficient if the copies of AR 4 contain a colour band on the top or right hand corner in accordance with above colour scheme. 7.2. Exporters should be advised to take adequate care in filling up the AR 4 proforma. The rebate sanctioning authority along with its complete postal address should be clearly mentioned at appropriate place in the AR 4. The applicable portion should be carefully retained and inapplicable portion struck off. The exporters are now required to give following certificates/declaration. "We hereby certify that the above mentioned goods have been manufactured. (a) availing facility/without availing facility of Modvat credit under Rule 57A of Central Excise Rules, 1944. (b) availing facility/without availing facility under Rule 12(1)(b) of Central Excise Rules, 1944. (c) availing facility/without availing facility under Rule 13(1)(b) of Central Excise Rules, 1944. We hereby declare that the export is in discharge of the export obligation under a Quantity Based Advance Licence/Value Based Advance Licence/Under Claim of Duty Drawback under Customs Central Excise Duties Drawback Rules, 1971." Disposal of AR 4 by the Customs Officer at the Point of Exports. 8.1. The original, duplicate and sixtuplicate copies of the AR 4 shall be presented by the exporter/his authorized agent 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. The export consignment shall be checked by the Customs Officer to see whether the seals are intact and the marks and number tally and if found in order he may allow exports after ensuring that the No. of the AR 4 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 proper officer of Customs would make necessary endorsements in the Original, Duplicate and Sixtuplicate copies of the AR 4 at appropriate places and put his stamp with his name and designation below his signature. The copies of AR 4 shall be disposed of by him in the following manner : Original and Sixtuplicate : To be handed over to the Exporter. Original shall be used for filling rebate claim. Sixtuplicate copy shall be used for Drawback/ DEEC endorsement. Duplicate : To be sent to Rebate Sanctioning authority declared on AR 4. 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. Filing and sanction of Rebate Claim : 9.1 With Maritime Collector of Central Excise: Where the export of the goods is from any of the ports, airports or post office falling within the jurisdiction of Maritime Collector of Central Excise of Bombay, Calcutta, Madras, Paradeep, Vishakhapatnam, Cochin, Kandla and the exporter had opted to claim rebate from Maritime Collector of Central Excise by declaring the same on AR 4, he will file the claim with the proof of due exportation within time limit prescribed under Sec. 11B of the Central Excises and Salt Act, 1944 i.e. six months from the date of export, in prescribed form along with original copy of the AR 4 duly endorsed by the Customs Officer certifying the export of the consignment [and the duplicate copy handed over to him by the customs officer in a sealed cover] to the Maritime Collector of Central Excise who shall compare the original AR 4 received from the exporter with the triplicate copy of the AR 4 received from the Central Excise Officer and the duplicate AR 4 received from the Customs Officer. The Maritime Collector after due scrutiny and verification of the said AR 4s, will sanction the rebate claim in whole or in part. 9.2 With Assistant Collector, Central Excise having jurisdiction of the factory : Where the exporter wishes to claim rebate of excise duty on goods exported from the Assistant Collector having jurisdiction over the factory or warehouse from where the goods removed for export, he will file the claim of rebate within six months from the date of export of the consignment [and the duplicate copy handed over to him by the customs officer in a sealed cover]. The Assistant Collector of Central Excise would verify and compare the original copy of AR 4 with the duplicate copy of AR 4 received from the Customs Officer and with the triplicate copy of AR 4 received from Superintendent, Central Excise Range and after satisfying himself that the claim is in order will sanction the rebate either in whole or in part. 9.3 Documents to be filed for claiming rebate : Following documents should be filed for claiming rebate - • Application in prescribed form Annexure 65 • Original copy of AR 4 • Duplicate copy of AR 4 in sealed cover received from Customs Officer [optional] • Duly attested copy of Bill of Lading • Duly attested copy of Shipping Bill (Export Promotion Copy) • Disclaimer Certificate [in case where claimant is other than exporter] 9.4 Time limit for disposal : 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 the same within 15 days. Queries/deficiencies shall be pointed out at one go and piecemeal queries should be avoided. The claim of rebate of duty on export of goods should be disposed of within a period of two months. Supplementary Rebate Claim : 10.1 The Supplementary Rebate Claim, if any, should be filed within the stipulated time provided under section 11B of the Central Excises and Salt Act, 1944. Relaxation by Collector of Central Excise 11.1 Relaxation to be granted by the Collector : The Collector is empowered to condone/relax any condition relating to rebate of excise duty on goods exported for reasons to be recorded in writing, if he is satisfied that the goods have actually been exported. However, the Collector is not empowered to condone delay in filing of the rebate claim filed after the expiration of six months from the date of export, the time limit prescribed under Section 11B of the Central Excise Act. It may be noted that this power has to be exercised by the Collector and not the Assistant Collector who may be acting as Maritime Collector or the Jurisdictional Assistant Collector. Restrictions 12.1 The Rebate of duty will not be allowed if - (i) the market price of the goods exported is less than the amount of rebate. (ii) The amount of the 'Rebate' of duty admissible is less than Rs. 500/- Miscellaneous 13.1 Exports by persons other than manufacturers : Where exports are by merchant exporters, a disclaimer certificate in favour of the exporter should be taken on each copy of AR4. 13.2 Numbering of AR 4 : Each exporter shall give a running serial starting from 1 for each calendar year to every AR 4 filed by him. 14.1 Maritime Collectors : Collector of Central Excise shall in the Trade Notice clearly specify the postal Address of the authority designated as Maritime Collector who will sanction the rebate claim and admit proof of exports in cases of exports under bond. 14.2 Collectors may having regard to the nature of goods or trade practice relax any of the conditions regarding markings on the export packages recording the reasons. Necessary trade notice may be issued for this purpose. 14.3 Collectors may also issue detailed trade notice/s and standing order/s in this regard. Copies of all Trade Notice and Standing Orders may be endorsed to Board and DGCCIE. 14.4 Kindly acknowledge receipt of this letter. [Annexures — Not Printed — See 1995 (75) E.L.T. (T4)]