Export of Excisable Goods - Advance Licence / DEEC holder - Central Excise Practice Manual (OLD) - Central Excise

EXPORT OF EXCISABLE GOODS - ADVANCE LICENSE/ DEEC HOLDER Conditions and procedures for such exports have been laid down in Notification No. 44/2001 - CE. This notifies for the removal of excisable goods (i.e. intermediate goods) from the place of manufacture or warehouse without payment of duty for use in the manufacture of final goods by a manufacturer who is a holder of a DEEC (Duty Exemption Entitlement Certificate) and an Advance License under the duty exemption scheme and their exportation out of India, to any country except Nepal and Bhutan. Conditions and Procedures for exports under Advance License/ DEEC are as follows: - 1. The manufacturer of intermediate goods should hold an Advance Intermediate License or he should hold the acknowledgement for the same where he has applied for such license to the Licensing Authority and has been permitted by the licensing authority or the committee to manufacture for supply of such goods to the ultimate exporter. 2. Such intermediate goods can be removed duty free either from place of manufacture or warehouse. 3. Such intermediate goods can be procured only by the ultimate exporter who is holder of DEEC and an Advance license under Duty Exemption Scheme under the EXIM policy. 4. The provisions of the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 has to be applied to the extent of their applicability to manufacture and export under this scheme. 5. The quantity of intermediate goods removed without payment of duty shall not exceed the duty exemption entitlement indicated in the certificate (i.e. in DEEC). 6. Such Intermediate goods obtained by the ultimate exporter has to be utilized for either of the following purposes only - For the manufacture of final goods to be exported, or For use as replenishment of duty paid excisable goods of identical specifications and technical characteristics which have been used in the manufacture of final goods already exported, or Disposed of as may be specified by the commissioner of Central Excise having jurisdiction over the factory of the 'ultimate exporter' in accordance with the provisions of EXIM policy. 7. Testing of goods - it is the duty of the ultimate exporter to make necessary arrangements of drawl of samples and subjecting them to such tests as may be directed by the commissioner of Central Excise having jurisdiction over the factory. 8. The goods shall be exported following the 'Simplified Export Procedure' (i.e. procedure specified in Notification No. 42/2001 - CE) meant for 'fully exempted goods'. 9. The following documents shall be submitted by the ultimate exporter within 30 days of the expiry of the period as specified in the DEEC or Advance License or within such permitted extended period: A detailed summary of the accounts maintained in the proforma specified under the Duty Exemption Entitlement Scheme, Attested copies of the shipping bills, bill of lading, DEEC certificate with appropriate entries made by the officers of customs. 10. Sealing on removal - sealing will be done by Superintendent and he will sign the documents, otherwise AC/DC may permit examination and sealing by inspector. Waste or By-product in the process of manufacture of final product: - Any waste arising in the process of manufacture undertaken by the ultimate exporter on the intermediate product obtained under this notification shall be removed on payment of appropriate duty as if such waste is manufactured in the factory of the manufacturer. 'Specified areas' from where exports by the ultimate exporter under this scheme can be made are as follows: - Any of the sea ports at Kandla, Mumbai, Nhava, Cochin, Chennai, Visakhapatnam and Kolkata, or Any of the airports at Mumbai, Kolkata, Chennai, Delhi and Bangalore, or Any of internal containers depots at Delhi and Bangalore.