Permission to Export Houses to enter into General Bond for export - Instructions regarding - Central Excise - 9/86

Permission to Export Houses to enter into General Bond for export - Instructions regarding Circular No. 9/86 Dated 1-4-1986 [From F. No. 209/9/86-CX.6] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Permission to Export Houses to enter into General Bond for export - Instructions regarding Representations have been received from the Trade that once the "Export House Certificate" issued to Merchant Exporters, expires, the permission to export goods under general bond is not granted to such Merchant Exporters. 2. The provisions relating to exports under general bond are contained in Rule 14 of Central Excise Rules, 1944. As per this rule, the Collector is empowered to grant permission to any person, including Merchant Exporters to enter into a general bond for exporting excisable goods. However, the practice is to grant such permission only to such merchant exporters who hold a valid Export House Certificate. Once the validity of this Export House Certificate expires, the permission to export under bond is not generally granted. The matter has since been examined by the Board and it is observed that as per Para 314(f) of the Handbook of Imports and Exports Procedures (1985-88), an Export House Certificate is valid for an additional six months from the actual date of expiry, so as to enable the exporter to obtain a fresh registration certificate. 3. In view of this, it has been decided that henceforth Merchant Exporters may be permitted to general bond for export under Rule 14 up to a period of six months after the date of expiry of the Export House Certificate. However, before granting this facility, proof must be obtained from the exporter to the effect that he has applied for a fresh registration certificate. In case, the exporter is de-registered before the expiry of the additional six months, the concession envisaged above will be restricted to the date from which the exporter stands de-registered. 4. Therefore, before granting permission to exporters for the above category of cases, a declaration should be procured from them to the effect that they have actually applied for obtaining a fresh registration certificate and that in case they are de-registered for any reason, the fact would be communicated to the proper Central Excise Officer within seven days. 5. For cases covered by Rule 13, Export House Certificate need not be insisted upon at all.