Export to Nepal and Bhutan - Central Excise Practice Manual (OLD) - Central Excise

EXPORT TO NEPAL AND BHUTAN Export to Nepal and Bhutan can be made with or without payment of duty. Export to Nepal and Bhutan without payment of duty There are 5 categories of export to Nepal and Bhutan under bond without payment of duty and these are: - 1. Export under bond to Nepal or Bhutan where payment is in freely convertible currency. 2. Export to Nepal in bond against payment in Indian rupee. 3. Export in bond of petroleum oil, LPG and lubricant products to Nepal. 4. Export in bond for supplies to government of India Aided Projects in Nepal and the Embassy Cooperative Store and Embassy Petrol Pump located in Nepal for the bona-fide use of officers and staff of the Embassy in Nepal. 5. Export without payment of duty of Krichu Hydro Electric Project and Tala Hydro Electric Project in Bhutan. Procedure for export to Nepal and Bhutan without payment of duty [Notification No. 45/2001-CE (N.T.)] Export under bond without payment of duty can be made from the factory of production or manufacture or warehouses or any other premises as may be approved by the commissioner of CE. I. Procedure at the place of dispatch: · 6 copies of invoice shall be presented to Superintendent or Inspector of CE having jurisdiction over the place of removal of goods [In case of export to government of India Aided Projects in Nepal, the order from Project Implementation Authority shall also be permitted]. · Superintendent shall verify the goods with reference to invoice. · After successful verification, the superintendent has the following duties: Seal the consignment [self sealing is not allowed in case of export to Nepal and Bhutan], Endorse each copy of invoice that verification is complete, Distribute invoice copies in the following manner: Ø Original - to exporter Ø Duplicate, triplicate quadruplicate - to customs officer-in-charge of the land customs station through which goods are intended to be exported [these are handed over to the exporter in sealed cover] Ø Quintuplicate - to AC/DC of CE who has accepted the bond Ø Sextuplicate - to be retain for official records. II. Procedure at Land Custom Station in India: Exporter shall present the following things to the customs officer-in-charge of the land customs station for verification: Export goods, Original copy of invoice, Sealed cover containing duplicate, triplicate quadruplicate copy of invoice. After successful verification, the custom officer will comply with following requirements: Make entries in a register, Certify 4 copies of invoice, Indicate the running serial number in red ink, Allow the goods to cross into the territory of Nepal and Bhutan, Distribute invoice in the following manner: Ø Original - to exporter Ø Duplicate triplicate - to the Nepalese and Bhutanese customs officer-in-charge of the check post through which goods are to be imported into Nepal and Bhutan III. Procedure at Nepal or Bhutan land custom station: The following things are presented before the Nepalese or Bhutanese customs officer: Goods, Original copy of invoice The officer will return the following things: Duplicate copy of invoice directly to the officer of the land custom station in India. Certificate of receipt of goods in Nepal or Bhutan. The officer shall deal with original and triplicate copies of invoice as directed by His Majesty's Government of Nepal or Bhutan as the case be. IV. Procedure after receipt of goods in Nepal or Bhutan at land custom station in India: The custom officer of India shall forward the duplicate copy of invoice to the central excise officer in charge of the factory or warehouse from where the goods are removed for export without payment of duty. The officer will keep a note of return of duplicate copies and remind the exporter for such copies which have not been received, failing which the exporter may be liable to pay full duty on such consignments. V. Procedure for discharge of bond or duty liability: Exporter shall present quadruplicate copy duly endorsed to the CE officer who has accepted the bond, within 6 months from the date of removal of goods, evidencing receipt of payment. Quadruplicate copy will be tallied with the quintuplicate copy. CE officer than will make provisional credit in bond account of the exporter. On receipt of the duplicate copy duly endorsed by officer of Nepal and Bhutan, CE officer will certify the export of goods and make suitable entry in bond account discharging duty liability under bond. Where the goods are exported by land, the export shall take place through any of the following land customs stations, namely, Sukhiapokhri, Panitanki, Jogbani, Jayanagar, Bairgania, Bhimnagar, Bitamore (Sursand), Raxaul, Sonauli, Barhni, Nepalganj Road, Shohratgar (Khunwa), Jarwa, Katarniaghat, Gauriphanta, Banbasa, Jhulaghat, Dharchula, Naxalbari, Galgalia, Kunauli, Sonabarsa, Tikonia, or such other check-post as may be specified by the Board. Export to Nepal and Bhutan on payment of duty under claim for rebate In case of export to Nepal on payment of duty, rebate of the whole of duty paid on the excisable goods under First schedule of CEA shall be granted to His Majesty's Government of Nepal based on Indo-Nepal Treaty. Conditions for export to Nepal are: · The goods shall be exported after payment of duty directly from the factory or warehouse except, where CBEC permits export from a place other than such factory or warehouse. · The goods shall be exported within 6 months from the date on which they were cleared for export from the factory or warehouse or within extended period as permitted. · The amount of rebate shall not exceed the aggregate of the basic and additional customs duty levied by his Majesty's Government of Nepal on such goods if they are imported into Nepal from any country other than India. · In case of export by land, export shall take place from any of the following land custom stations or such other check post as specified by CBEC: Sukhiapokhri Panitanki Jogbani Jayanagar Bairgania Bhimnagar Bitamore (Sursand) Raxaul Sonauli Barhni Nepalganj Road Shohratgar (Khunwa) Jarwa Katarniaghat Gauriphanta Banbasa Jhulaghat Dharchula Naxalbari Galgalia Kunauli Sonabarsa Tikonia Procedure for export to Nepal Rebate procedure to Nepal is specified in Notification No. 20/2004-CE (N.T.). There is no rebate procedure for Bhutan. I. Procedure at the place of dispatch: · Exporter shall present the following to jurisdictional Superintendent or Inspector of CE: An application in the specified Form in quadruplicate, and The export goods. · The officer shall verify the goods with reference to invoice. · After successful verification, the officer has the following duties: Seal the consignment [self sealing is not allowed in case of export to Nepal and Bhutan], Deliver the goods to exporter or his agent for export to Nepal, Endorse each copy of invoice that verification is complete, Distribute invoice copies in the following manner: Ø Original - to exporter Ø Duplicate triplicate - to customs officer-in-charge of the land customs station through which goods are intended to be exported [these are handed over to the exporter in sealed cover] Ø Quadruplicate - to be retain by CE officer II. Procedure at land custom station in India Exporter shall present the following things to the customs officer-in-charge of the land customs station for verification: Export goods, Original copy of invoice, Sealed cover containing duplicate triplicate copy of invoice. After successful verification, the custom officer will comply with following requirements: Make entries in a register, Certify 3 copies of invoice, Indicate the running serial number in red ink, Allow the goods to cross into the territory of Nepal, Distribute invoice in the following manner: Ø Original - to exporter Ø Duplicate triplicate - to the Nepalese customs officer-in-Charge of the check post through which goods are to be imported into Nepal. III. Procedure at Nepal land custom station: The following things are presented before the Nepalese customs officer: Goods, Original copy of invoice The officer will return the following things: Duplicate copy of invoice directly to the officer of the land custom station in India. Certificate of receipt of goods in Nepal. · The officer shall deal with original of invoice as directed by His Majesty's Government of Nepal. IV. Procedure after receipt of goods in Nepal or Bhutan at land custom station in India: The custom officer of India shall forward the duplicate copy of invoice to the Deputy Director of Inspection, Customs and Central excise (Nepal Refund Wing). The officer will keep a note of return of duplicate copies and remind the exporter for such copies which have not been received. V. Procedure followed by the Directorate General of Inspection, Customs and Central excise (Nepal Refund Wing), New Delhi: · Director General of Inspection Nepal Refund Wing has the following duties: Maintain a separate register for each Indian border Customs check post. On receipt of duplicate copy, entry will be made in the respective register. At the end of the month, prepare a consolidated statement for the amount of rebate due to His Majesty's Government of Nepal on the basis of certificates of exports received during the month. · Copies of recapitulation statement shall be forwarded to the following: One copy to the commissioner of CE. One copy to His Majesty's Government of Nepal. One copy to be retained by directorate for official records. · The Commissioner after receipt of recapitulation statement shall: Verify the payment of rebate to Nepal Government. Issue post audit certificate in respect of amount allowed as rebate against each invoice passed in that bill. Verify that the concerned factories have actually paid the duty of excise against which rebate is to be given. Certify that the factories have paid the amount of duty as indicated in the statement, to the directorate.