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Export of Excisable Goods - Cancellation of Export / Re-entry of goods - Central Excise Practice Manual (OLD) - Central ExciseExtract EXPORT OF EXCISABLE GOODS - CANCELLATION OF EXPORTS RE-ENTRY OF GOODS Cancellation of export documents (Form ARE.1): It may happen that after clearance of the goods for export (under Form ARE.1), export may not take place and the exporter may like to divert the goods for home consumption. In such situation, 1. The exporter is required to make a written application to the bond/ letter of undertaking accepting authority i.e. either to Assistant/ Deputy Commissioner or maritime commissioner for cancellation of application and diversion of goods for home consumption. 2. The permission will be granted within 3 working days. 3. On such permission, duty will be payable as specified in the application along with the interest on such duty from the date of removal for exports from the factory or warehouse, till the date of payment of duty. 4. On payment of duty, the assessee/ exporter may take credit in his running bond account where bond is furnished. 5. The assessee/ exporter shall make the entry in the Daily Stock Account regarding payment of duty, interest paid, invoice number, TR-6 challans on which duty is paid. 6. It is not required to bring back the goods to the factory or warehouse. They can be cleared directly from the place of export upon payment of required amount (i.e. duty plus interest). 7. No re-assessment of duty is required unless there are reasons to believe that the earlier assessment done at the time of export was not correct. Changes in export documents: It may also happen that after clearance of the goods for export (under Form ARE.1), the exporter may intends to change the destination or buyer or port/ place of export. In such situation, he may do so by informing to the bond/ letter of undertaking accepting authority in writing about the changes and then he can make necessary changes in all the copies of ARE.1 and the invoices. 'Re-entry of goods cleared for export' under bond but not exported: It may happen that after clearance of the goods for export (under Form ARE.1) under bond or undertaking without payment of duty, export may not take place for genuine reasons. Such goods may be returned to the factory provided the following conditions are fulfilled: Re-entry of goods in the factory, cleared for export under bond or undertaking without payment of duty not exported, is permitted provided the following conditions are fulfilled: 1. Reasons of export cancellation must be genuine. 2. Such goods shall be returned to the factory within 6 months. 3. Such goods shall be accompanied by the original documents i.e. Form ARE.1 and invoice. 4. On return, the assessee/ exporter shall give intimation of re-entry of such goods in Form D-3 within 24hrs of such entry. 5. Such goods should be kept separate for 48hrs from the time of furnish of intimation to central excise officer. 6. The Superintendent of central excise or Inspector in charge of the factory will verify the identity of 5% of intimation of such goods with reference to invoice, ARE.1 and Daily Stock Account. 7. The assessee shall record details of such goods in the Daily Stock Account. Note: If goods are returned even after 6 months, duty will not be payable. Duty will be payable only when these goods are again cleared from the factory. Re-import of exported goods and subsequent re-export [Notification No. 42/2001 - CE]: 1. Exported goods may be re-imported and returned to the factory for carrying out the following purposes: Repairs, or Re-conditioning, or Refining, or Re-making, or For other similar purpose. Aftercarrying out the said processes these can be re-exported. 2. Accounting of such re-imported goods: On re-import separate account shall be maintained in the Daily Stock Account for such goods. After carrying out the above process suitable entry shall be made in the said account. On re-export usual export procedure shall be followed. 3. Re-import and re-export shall be governed by the provisions of the Customs Act i.e. if goods are re-imported there is no duty liability arising under Excise law. Duty liability arises only under Customs law. For e.g. if exported goods are re-imported, these can be cleared on payment of customs duty which is equal to duty drawback or rebate of excise duty availed. 4. Waste arising during the said processes: Such waste can be cleared from the factory on payment of duty, or Such waste can be destroyed after informing the proper excise officer in writing at least 7 days in advance and thereupon the duty payable on such waste or refuse may be remitted by Commissioner of central Excise. Entry of goods, in another factory of the same manufacturer, cleared from 1 st factory for export: Goods removed for the purpose of exports from one factory of the manufacturer is allowed to enter in another factory of the same manufacturer only for the purpose of consolidation and loading of goods manufactured in subsequent factory and export thereof provided the following conditions are fulfilled: 1. The goods shall be examined and sealed at each factory by a central excise officer. 2. Goods removed from the 1 st factory shall be accompanied by the invoice and Form ARE.1, at the time of their entry in the subsequent factory 3. Central excise officer shall supervise the loading of goods in vehicle belonging to the subsequent factory 4. The exporter shall pay the supervision charges to the central excise officer.
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