Exports to Nepal or Bhutan without payment of duty - Procedure - 51/94 - Central Excise - Non Tariff

Exports to Nepal or Bhutan without payment of duty - Procedure

Notification No. 51/94-C.E. (N.T.)

Dated 22-9-1994

In exercise of the powers conferred by sub-rule (2) of rule 13 of the Central Excise Rules, 1944, the Central Government hereby permits export of all excisable goods without payment of excise duty from a warehouse or a licensed factory or any other premises as may be approved by the Collector of Central Excise, to Nepal or Bhutan, subject to the following conditions, namely :-

(1) the payment for the goods shall be in freely convertible currency;

(2) the importer in Nepal or Bhutan, as the case may be, shall open an irrevocable letter of credit in favour of the exporter in India, before the export takes place :

Provided that nothing contained in this condition shall apply if the excisable goods other than consumer goods, but excluding motor vehicles, are exported without payment of duty to Nepal or Bhutan as :-

(a) supplies to projects financed by any United Nations agency, the International Bank for Reconstruction and Development, International Development Association, the Asian Development Bank or any other multilateral agency of like nature;

(b) to all diplomatic missions in Nepal or Bhutan provided the Indian Embassy or the Ministry of External Affairs certifies that the import is for personnel of the diplomatic community;

(3) the exporter shall execute a bond in proper form under rule 13 of the Central Excise Rules, 1944 and in such manner as may be determined by Collector of Central Excise having jurisdiction over the factory warehouse, or the approved premises, from where the goods are removed for export to Nepal, as the case may be, or Bhutan;

(4) the exporter shall furnish a certificate in Appendix I to this notification from the Reserve Bank of India or, any other Bank authorised to deal in foreign exchange by the Reserve Bank, showing that full payment for the goods has been duly received in freely convertible currency. On receipt of such a certificate and on the satisfaction of the other conditions as laid down in the bond referred to in condition (3), the Collector of Central Excise shall discharge the exporter of his liabilities under the bond;

(5) the special procedure set out in Appendix II to this notification shall be followed :

Provided that if any such goods as are specified in Appendix III to this notification (hereinafter referred to as the "capital goods") are exported from the factory of manufacture to any place in Nepal against any global tender invited by His Majesty's Government of Nepal and for which payment is received in Indian currency, export without payment of Central Excise duty shall also be permitted if -

(i) the exporter executes a bond as specified in condition (3) above and follows the special procedure set out in Appendix II to this notification; and

(ii) the exporter furnishes a certificate duly signed by the concerned Bank of India showing that full payment for the goods has been duly received in Indian currency by the said Bank;

Provided further that on receipt of the certificate referred to in clause (ii) of the first proviso, and on the satisfaction of the other conditions as laid down in the bond referred to in clause (i) of the first proviso, the Assistant Collector of Central Excise shall discharge the exporter of his liabilities under the bond, if it is so executed.

Explanation. - In this notification, "freely convertible currency" means Australian Dollars, Austrian Schillings, Baharin Dinars, Belgian Francs, Canadian Dollars, Danish Kroners, Deutsche Marks, French Francs, Hongkong Dollars, Italian Lire, Japanese Yen, Kuwaiti Dinars, Malaysian Dollars, Netherlands Guilders, Norwegian Kroners, Pounds Sterling, Singapore Dollars, Swedish Kroners, Swiss Francs and U.S.A. Dollars (and includes Indian Rupees bought by the Asian Development Bank by payment to the Reserve Bank of India in foreign exchange).

APPENDIX - I

Bank Certificate

This is to certify that the following Bills covering exports of ....... to Nepal/Bhutan drawn by M/s. .......... have been negotiated and proceeds as given below received by us in the approved manner. We also certify that the payments thereof have been received in freely convertible currency.

S. No.	Invoice No. & Date	Date of Exports	Description of goods exported	Value of goods as declared by the exporters in the negotiable invoice in foreign exchange in words & figures
1	2	3	4	5

Date on which payment was received by Bank		Date on which proceeds of foreign exchange were actually credited to the exporter's account	Amount received in India (both in Rs. and in foreign exchange)
6		7	8
			Signature of Manager/ Authorised officer of the Bank with Official Stamp.
Notes - 1.	This certificate should be on the Bank's letter head and should bear the Official Stamp of the Bank.
2.	This certificate will be issued only after the full proceeds of the Bill have been realised.

APPENDIX - II

Procedure for export of excisable goods without payment of Central Excise duty to Nepal or Bhutan, as the case may be, for which payment is received in freely convertible currency.

(i) The exporter or his agent shall prepare six copies of the invoices as prescribed in the Annexure-A to the Notification in carbon for the purpose of removal of goods for export to Nepal or Bhutan without payment of Central Excise duty and shall make the following declaration on the same.

"I/We declare that the goods entered herein are intended for export to Nepal/Bhutan in bond, and shall not be diverted or delivered en route to any other country"

(ii) He shall furnish the relevant information in all the columns provided in the invoice, in carbon, for removal of the said goods for export.

(iii) He shall, thereafter, present all the six copies of the invoice to the Central Excise Officer in-charge of the warehouse or factory or the approved premises;

(iv) The said officer shall scrutinise the invoices in order to verify that the particulars given therein are correct, particularly the description of the goods, the rate and amount of duty leviable thereon and thereafter endorse copies of the invoice in token of verification made by him. Where the identity of the excisable goods can be determined, only on the basis of chemical composition or like, the said officer will draw samples for test;

(v) The goods shall then be sealed, by the said officer, in the manner as laid down by the Collector of Central Excise, after due verification of the goods with the particulars in the invoice and shall be delivered to the exporter or his agent, together with the original copy of the invoice, duly completed and registered. The said officer, will also give duplicate, triplicate and quadruplicate copy of invoice in a sealed cover, to the exporter or his agent for delivery to the Customs officer incharge of the Land Customs Station through which the goods are intended to be exported and will obtain acknowledgement to this effect. The exporter or his agent shall then be free to remove the goods for export to Nepal or Bhutan, as the case may be, through the Land Customs Station appointed under clause (b) of section 7 of the Customs Act, 1962 (52 of 1962) indicated on the respective invoices.

(vi) The quintiplicate copy shall be forwarded to the Central Excise Officer who has accepted the bond. The sixth copy of the invoice shall be retained by the Central Excise Officer.

(vii) On arrival of the goods at the land customs station such goods shall be presented by the exporter or his agent to the officer of Customs incharge of the land customs station alongwith the original copy of invoice accompanying the goods. The exporter or his agent, will also deliver the sealed envelopes containing duplicate, triplicate and quadruplicate copy of invoices to the Customs Officer of the land customs station and obtain acknowledgement.

(viii) The customs officer incharge of the land customs station shall :

(a) compare the original copy of the invoice with the duplicate, triplicate and quadruplicate copies of the invoice received by him in sealed cover from the Central Excise Officer incharge of the warehouse or factory, through the exporter or his agent.

(b) examine the seals of the containers and identify the containers with the particulars shown in the invoice :

(c) if the particulars on the original copy of the invoice agree with the particulars on the duplicate, triplicate and quadruplicate copies and the seals are intact and packages are satisfactorily identified, he shall make necessary entries in the register maintained at the land customs station and allow the goods to cross into Nepalese or Bhutanese territory and certify accordingly on each of the four copies of the invoice and simultaneously indicate the running serial number in red ink prominently, visible and encircled against item 4 on all the four copies of the invoice (in case the seals are not found intact, the officer of customs incharge of the land customs station may reseal the containers with his own seal after satisfying himself as to the identity of the containers and the goods from the particulars shown on the invoice and, if necessary, by opening and examining the goods). The customs officer incharge of the land customs station, will return the quadruplicate copy of the invoice, to the exporter or his agent, after endorsement under his signature, name and designation, with official seal, the fact of receipt of goods at land customs station and of his satisfaction in regard to the identity and quantity of goods;

(d) deliver the original copy of the invoice duly endorsed to the exporter or his agent alongwith the goods for presentation to the Nepalese Customs officer or Bhutanese Customs officer, as the case may be, at the corresponding Nepalese land customs station or Bhutanese land customs station, as the case may be. He shall also send, direct, the duplicate and triplicate copy of the invoice to the Nepalese or Bhutanese customs officer incharge of the checkpost through which the goods are to be imported into Nepal or Bhutan, as the case may be.

(ix) The goods are then to be produced before the Nepalese customs officer or Bhutanese customs officer, as the case may be, at the corresponding border check post alongwith the original copies of the invoice. The Nepalese customs officer or Bhutanese customs officer, as the case may be, shall deal with the original and triplicate copy of the invoice as directed by His Majesty's Government of Nepal or the Government of the Kingdom of Bhutan, as the case may be, and return the duplicate copy, after endorsing his certificate of receipt of goods in Nepal or Bhutan, as the case may be, direct to the officer of customs incharge of the land customs station in India.

(x) The officer in-charge of the land customs station shall forward the duplicate copy to the Central Excise officer in-charge of the factory or warehouse, from which the goods were removed for export without payment of duty. For this purpose, the said officer in-charge of the land customs station should keep a note of the return of duplicate copies from the Nepalese customs officer or Bhutanese customs officer, as the case may be, and remind the exporter for such copies as have not been received, failing which the exporter may be liable to pay full duty on such consignments.

(xi) The usual procedure for removal of excisable goods for export without payment of duty including sealing shall be followed by the concerned Central Excise officers subject to modification as indicated in this procedure.

(xii) The customs officer, at the land customs station shall also maintain a separate record of all such exports of the goods without payment of duty and will assign running serial number at the time of export as indicated earlier.

(xiii) The exporter will submit the quadruplicate copy duly endorsed by the officer at land customs station to the Central Excise officer incharge of the factory or the warehouse, as the case may be, alongwith Bank certificate evidencing receipt of payment, in freely convertible currency within three months from the date of removal of the goods. The Central Excise officer will tally the particulars as on quadruplicate copy of the invoice received from the Central Excise officer who has allowed clearance from the warehouse or factory and make suitable entries in Bond Account of the exporter, giving provisional credit or discharging the bond provisionally. On receipt of the duplicate copy of invoice, duly endorsed by customs officer of Nepal/Bhutan from the customs officer, land customs station, certifying export of the goods and after tallying the particulars with those in quadruplicate copy of the invoice make suitable entries in Account and the obligation under the said bond will then be discharged.

(xiv) The officer incharge of the warehouse or factory, the customs officer incharge of the land customs station and the officer who accepted the bond, shall maintain records for keeping an account of removals and exports under bond.

(xv) In case of failure to export, the customs officer incharge of the land customs station, shall send necessary intimation to the Central Excise officer who has allowed the clearance for export of the goods to Nepal or Bhutan, as the case may be, with copy endorsed to Asstt. Collector, Central Excise Division. If goods are not exported within the time allowed for such export or if shortages are noticed at the time of export, full duty should immediately be demanded on the goods not so exported or shortages noticed on the goods from the exporter on hearing from the Customs officer in-charge of land customs station.

(xvi) The Collector may issue such other instructions and prescribe such returns, as may be necessary, for purpose of proper accounting of removals for export without payment of Central Excise duty and may require the exporter to furnish such returns as may be prescribed by him for the purpose.

APPENDIX - III

The capital goods - The goods, that is to say, all items, of machinery including prime movers, instruments, apparatus and appliances, control gear and transmission equipment as well as auxiliary equipment (including those required for research and development purposes, testing and quality control), required by an investor for production of goods or for rendering services, including those for replacement or expansion.

ANNEXURE - 'A'

Invoice of goods liable to Central Excise Duty in India transmitted under Central Excise Seal to Nepal/Bhutan.

Invoice No. ........ Range ......... Circle ........		dated .........	Original Duplicate Triplicate Quadruplicate Quintuplicate Sixtuplicate
(Factory or Warehouse)

Collectorate .................... From ................ By ............... through the Border Post at .............. Export to ...........

(Merchant's Name)

Marks and numbers of packages/ container	Numbers and description of packages/ Tanker/ container	Description of goods with tariff classification	Net weight, value or quantity	Value (words & figures)	Rate of duty
(1)	(2)	(3)	(4)	(5)	(6)

Amount of duty (words & figures)	Number and date & amount of bond and form of bond		Full address of the officer who has accepted the bond		Number and date of railway receipt, if any	Remarks
(7)	(8)		(9)		(10)	(11)
					Rs. P.
Place : Date :				Signature of exporter or his authorised agent.

2. Certified that the above-mentioned containers/packages have been identified by me and sealed with the Central Excise seal under my supervision.

Running Serial No. ..... Date ..............

Signature and designation of the Officer of Central Excise.

(to be given in red ink and encircled by the Border Examiner)

3. Certified that the above-mentioned consignment has been identified by me and has passed the Border Customs Post.

(Running Serial number of the Border Check Post to be written in red ink prominently encircled.)

Signature and designation of the Indian Officer-in-Charge of the Border Customs Post at ..............

4. Certified that the above-mentioned consignment/packages have been duly identified by me and have been received and accounted for in Nepal/Bhutan.

Signature and designation (with official seal) of Nepalese/Bhutanese Customs Officer.

Check Post ....................