Export of Excisable Goods - Warehousing - Central Excise Practice Manual (OLD) - Central Excise

EXPORT WAREHOUSING Export warehousing is a facility where goods can be procure from various manufacturers without payment of duty and storing them in warehouses from where they get eventually exported. The board vides Notification No. 46/2001-CE (N.T.), has extended the facility of warehousing to all excisable goods specified in 1 st schedule of CETA. The board vide Circular No. 581/18/2001-CX in pursuance of above notification, specifies the conditions, procedures, places and class of exporters to whom export warehousing facility is applicable. Eligible Exporters 1. The exporters who are recognized as super star trading houses or star trading houses under EXIM policy and the foreign departmental stores of repute, 2. Automobile manufacturers who have signed MOU with Directorate General of Foreign Trade in the Ministry of Commerce and Industry. Eligible Places for warehouse 1. Ahmedabad, 2. Bangalore, 3. Kolkata, 4. Chennai, 5. Delhi, 6. Hyderabad, 7. Jaipur, 8. Ludhiana, 9. Mumbai, 10. Districts of Pune and Raigad in the state of Maharashtra, 11. District of East Midnapore in the state of West Bengal, 12. District of Kancheepuram in the State of Tamil Nadu and 13. District of Indore in the state of Madhya Pradesh. Procedure for export warehousing 1. Application for registration of establishment used for export warehousing shall be made as per Rule 9 to the Commissioner. Procedure for registration will be same as normal registration. Registration certificate will be issued by the jurisdictional Superintendent of Central excise. 2. The exporter shall furnish a general Bond in Form B-3 with 25% security. 3. A 'running bond account' register shall be maintained by the exporter in the warehouse which shall be used for scrutiny and checking by auditors or office-in-charge. 4. Removal of goods from factory to warehouse: Certificate for removal of goods from factory to warehouse will be issued in a lot of 25 by CE officer in the Form CT-2 indicating the details of the bond executed. The procedure is as follows: - Exporter shall make debit entry in the 'running bond account' and indicate the same in CT-2 certificate. After this copies of certificate will be disbursed as follows - 1 copy will be forwarded to the officer-in-charge of the warehouse. 1 copy will be sent to the consignor. 1 copy will be retained by the exporter. Now the procedure as laid down in circular no. 579/16/2001-CX will be followed i.e. Consignor shall prepare an invoice (as per Rule 8) and an application for removal in Form ARE.3. Ø On the top of each ARE.3 copy serial no. of respective CT-2 shall be indicated. Ø On receipt of goods, the provisional debit shall be converted into actual debit as per Form ARE.3 [Any nominal difference in provisional and actual duty debited shall be ignored]. Officer-in-charge of warehouse will countersign the application. Application will be dispatched to the Range office having jurisdiction over the factory of removal within one working day of receipt of the application. The exporter i.e. owner of warehouse shall maintain private record (warehousing register) which shall be used by the officer-in-charge of the warehouse. Receipt of goods will be governed by the procedure as laid down in the respective circular. Such goods shall be stored separately or proper accountal shall be maintained. Packing, re-packing, labelling or re-labelling shall be governed as per rule 20 of CEA and suitable entries shall be made in the warehousing register. 5. Clearance of goods for export: the procedure relating to preparation of application for export (ARE.1), examination and sealing, acceptance of proof of export etc. shall be governed by Notification No. 42/2001-CE (N.T.) Diversion of export goods for home-consumption stored in warehouse · The goods can be diverted with prior permission of jurisdictional AC/DC of CE. · Goods can be diverted even after the clearance from the warehouse on ARE.1 [provisions of Notification No. 46/2001-CE (N.T.) shall be followed for cancellation of documents]. · Interest shall be charged @ 24% per annum on the amount of duty payable on goods diverted for home-consumption from the warehouse from the date of clearance from the factory of production or any other approved premises, till the date of payment of duty and clearance. Waiver of physical warehousing · Permitting export without physically storing the goods in the warehouse will be allowed only in exceptional cases such as where delay occurred due to delayed supply from the factory or longer transit period or requirement of immediate export or any other genuine reasons. · Such permission may be given by the officer-in-charge of the warehousing. · Such waiver will be allowed only if the entire consignment is entered for export in the original packing. · Intimation of permission granted shall be given to the Superintendent-in-charge of the warehouse at the earliest.