Central Excise (11th Amendment) Rules, 1994 - Change in Export Procedure - 40/94 - Central Excise - Non Tariff

Central Excise (11th Amendment) Rules, 1994 - Change in Export Procedure

Notification No. 40/94-C.E. (N.T.)

Dated 22-9-1994

In exercise of the powers conferred by section 37 of the Central Excises and Salt Act, 1944 (1 of 1944), the Central Government hereby makes the following rules further to amend the Central Excise Rules, 1944.

1. (1) These Rules may be called the Central Excise (11th Amendment) Rules, 1994.

(2) They shall come into force on the 1st day of October, 1994.

 2. In the Central Excise Rules, 1944 (hereinafter referred to as the said Rules), for rules 12, 12A, and 13, the following rules shall be substituted, namely :-

"12. Rebate of duty. - (1) The Central Government may, from time to time, by notification in the Official Gazette, grant rebate of -

(a) duty paid on the excisable goods;

(b) duty paid on materials used in the manufacture of goods;

If such goods are exported outside India or shipped as provision or stores for use on board a ship proceeding to a foreign port, to such extent and subject to such safeguards, conditions and limitations as regards the class or description of goods, class or description of materials used for manufacture thereof, destination, mode of transport and other allied matters as may be specified in the notification :

Provided that if the Collector of Central Excise is satisfied that the goods have in fact been exported, he may, for reasons to be recorded in writing, allow, the whole or any part of the claim for such rebate, even if all or any of the conditions laid down in any notification issued under this rule have not been complied with.

(2) Where the Central Government does not grant under clause (a) of sub-rule (1) either wholly or partially any rebate of duty paid on goods exported to a country outside India, it may, in order to promote exports or fulfil obligations arising out of any treaty entered into between India and the Government of that country, provide, by notification in the Official Gazette, for payment to the Government of that county an amount not exceeding the duty paid on such goods which are exported out of India to that country.

(3) No such rebate of duty, in respect of excisable materials used in the manufacture of goods exported out of India, under clause (b) of sub-rule (1) shall be allowed, if the exporter avails of drawback allowed under the Customs and Central Excise Duties Drawback Rules, 1971 or credit of duty under heading AA of Chapter V of the Central Excise Rules, 1944.

Explanations. - In this rule, the expressions, -

(i) "manufacture" includes the process of blending of any goods or making alterations or any other operation thereon;

(ii) "materials" includes raw materials, consumables, components, semi-finished goods, assemblies, sub-assemblies, intermediate goods, accessories, parts and packaging materials required for manufacture of export goods but does not include capital goods used in the factory in or in relation to manufacture of export goods.

(4) The provisions of this rule shall not apply to such excisable goods, export of which are prohibited under any law for the time being in force.

13. Export in bond of goods on which duty has not been paid. - (1) The Central Government may, from time to time, by notification in the Official Gazette -

(a) permit export of specified excisable goods in bond without payment of duty, from a factory of manufacture or warehouse;

(b) specify materials, removal of which without payment of duty from the place of manufacture or storage for use in the manufacture of export goods, may be permitted by the Collector of Central Excise;

(c) allow removal of excisable material without payment of duty for the manufacture in bond of export goods, as may be specified, to be exported in execution of one or more export orders; or for replenishment of duty paid materials used in the manufacture of such export goods already exported for the execution of such orders, or both;

subject to such safeguards, conditions and limitations as regards the class or description of goods, class or description of materials used for manufacture thereof, destination, mode of transport and other allied matters as may be specified in the notification which the exporter undertakes to abide by entering into a bond in the proper form with such surety or sufficient security, and under such conditions as the Collector approves.

(2) The Central Government may, from time to time, by notification in the Official Gazette, permit export of specified excisable goods in bond, without payment of duty from a factory of manufacture or warehouse, to Nepal or Bhutan, subject to such conditions or limitations as regards the class of goods, destination, mode of transport and other matters as may be specified therein.

ExplanationI. - In this rule, the expression "manufacture" includes the process of blending of any goods or making alterations or any other operation thereon.

Explanation II. - In this rule, the term 'materials' shall include raw materials, consumables, components, semi-finished goods, assemblies, sub-assemblies, intermediate goods, accessories, parts and packaging materials used in the manufacture of export goods but does not include capital goods used in the factory in or in relation to manufacture of export goods."

3. For rule 185 of the said rules, the following rule shall be substituted, namely :-

"185. Proper numbering of packages meant for export. -

(1) Packages in which goods to be exported are packed shall be legibly marked in ink or oil colour or in such other durable manner as the Collector of Central Excise may allow, with a progressive number commencing with No. 1 for each calendar year and with the exporter's name and special mark, if any :

Provided that if the Collector of Central Excise is of opinion that having regard to the nature of the goods or the trade practice it is necessary so to do, he may, by order, for reasons to be recorded in writing, exempt any or all of the requirements of sub-rule (1) above.

(2) When both indigenous and foreign motor spirit or kerosene are simultaneously held in stock at the depot from which export is to be made, each class of motor spirit or kerosene shall be stored in a separate tank and the transfer to containers shall be authenticated by the exporter or his authorised agent at the end of each transfer".

4. For rule 187 of the said rules, the following rule, shall be substituted, namely :-

"187. Sealing of goods and examination at place of despatch. - (1) Where the exporter desires the sealing of goods intended for export at the place of despatch, he shall present the goods along with application prepared in the proper form in sixtuplicate duly signed by him for removal, to the proper officer for examination at least twenty-four hours before the intended removal or within such shorter period as the Collector of Central Excise may allow. The application in the proper form shall contain the amount of duty and value of goods in figures as well as in words.

(2) When the goods are presented before the proper officer under sub-rule (1), the proper officer, after verifying that the goods are identifiable with those cited in the application including the particulars of the duty paid or payable, shall seal each package in the manner and method as specified by the Collector of Central Excise and endorse each copy of the application in token of having such examination done.

(3) The proper officer shall return the original, duplicate and sixtuplicate copies to the exporter. The triplicate copy shall be sent by the proper officer to the Maritime Collector of Central Excise either by post or by handing over to the exporter in a tamper-proof sealed cover. The proper officer shall send the quadruplicate copy to his Chief Accounts Officer and retain the quintuplicate for his record. The exporters shall use the sixtuplicate copy for the purpose of claiming drawback :

Provided where goods are not exported directly from the factory of manufacture, the triplicate and quadruplicate copies shall be sent by the proper officer to the Superintendent having jurisdiction over the factory of manufacture, who shall after verification, forward the triplicate copy to the Maritime Collector either by post or by handing over to the exporter in a tamper-proof sealed cover or, as the case may be, to the Collector of Central Excise having jurisdiction over the factory and the quadruplicate copy to his Chief Account Officer.

(4) In case of export by parcel post after the goods intended for export has been sealed, the exporter shall affix to the duplicate application sufficient postage stamps to cover postal charges and shall present the documents, together with the package or packages to which it refers to the postmaster at the office of booking.

(5) A separate application shall be submitted in respect of each consignment.

187A. Despatch of goods without examination. - Where the exporter desires examination of goods at the place of export, he shall send the original, duplicate and sixtuplicate copies of the application along with the goods at the place of export, and shall send the triplicate, quadruplicate and quintuplicate copies of the application to the proper officer within twenty-four hours of removal of the consignment. The proper officer shall after verifying the particulars of the duty paid or duty payable, send the triplicate copy of application to the Maritime Collector of Central Excise either by post or by handing over to the exporter in a tamper-proof sealed cover, quadruplicate copy to his Chief Accounts Officer and retain the quintuplicate copy for his records. The application shall contain the amount of duty and value of goods in figures as well as in words :

Provided that where goods are not exported directly from the factory of manufacture, the triplicate and quadruplicate copies shall be sent by the proper officer to the Superintendent having jurisdiction over the factory of manufacture, who shall after verification forward the triplicate copy to the Maritime Collector of Central Excise either by post or by handing over to the exporter in a tamper-proof sealed cover or, as the case may be, to the Collector of Central Excise having jurisdiction over the factory and the quadruplicate copy to his Chief Accounts Officer.

187B. Examination of goods at the place of export. - (1) On arrival at the place of export, the goods shall be presented together with original, duplicate and sixtuplicate copies of the application to the Collector of Customs or other duly appointed Officer.

(2) The Collector of Customs or other duly appointed officer shall carefully examine the consignments with the particulars as cited in the application and if he finds that the same are correct and exportable in accordance with the laws for the time being in force, shall allow export thereof and certify on copies of the application that the goods have been duly exported citing the shipping bill number and date and other particulars of export :

Provided that if packages containing the consignments were sealed at the place of despatch by the Officer in the manner provided in rule 187, such Collector of Customs or other duly appointed officer shall examine and check-weigh the consignment with reference to exportability of such consignments and if they correspond with description given in application and seals are found intact, shall allow export thereof.

(3) The Collector of Customs or other duly appointed officer shall return the original and sixtuplicate copies of application to the exporter and forward the duplicate copy of application either by post or by handing over to the exporter in a tamper-proof sealed cover, to the officer specified in the application for removal, from whom exporter wants to claim rebate. The exporter shall use the sixtuplicate copy for the purposes of claiming draw back."

5. For rule 189 of the said rules, the following rule shall be substituted, namely :-

"189. Presentation of claim for rebate. - (1) Claim of rebate of duty in the proper form shall be lodged along with original copy of the application of removal to the Collector of Central Excise having jurisdiction over the factory of manufacture or, as the case may be, the respective Maritime Collector of Central Excise of port of exportation at Bombay, Calcutta, Madras, Pradeep, Vishakapatnam, Cochin, Kandla under whose jurisdiction such Port, air port or post office of export, from which goods were exported, are located.

(2) The Collector of Central Excise having jurisdiction over the factory of manufacture or, as the case may be, Maritime Collector of Central Excise shall compare the duplicate copy of application received from the Officer of Customs with the original copy received from the exporter and with the triplicate copy received from the Central Excise Officer and if satisfied that the claim is in order, he shall sanction the rebate either in whole or in part.

6. (1) Rules 173D, 189A, 189B, 191A, 191B and 191BB of the said rules shall be omitted.

(2) Notwithstanding such omission, any notification issued under rules 191A, 191B and 191BB of the said rules and are in force, immediately before the commencement of the Central Excise (11th Amendment) Rules, 1994 (hereinafter referred to as these rules), shall in so far as they are not inconsistent with the provisions of these rules shall be deemed to have been issued under the corresponding provisions of these rules.