This notification specifies the conditions, safeguards and procedures for export without payment of duty - 043/2001 - Central Excise - Non Tariff

Conditions, safeguards and procedures for procurement of the excisable without payment of duty manufacture or processing of export goods

Notification No.43/2001-CE(NT)

Dated 26/06/2001

G.S.R. In exercise of the powers conferred by of sub-rule (3) read with sub-rule (2) of rule 19 of the Central Excise (No.2) Rules, 2001, the Central Board of Excise and Customs hereby notifies the conditions, safeguards and procedures for procurement of the excisable goods without payment of duty for the purpose of use in the manufacture or processing of export goods and their exportation out of India, to any country ²[****] namely: -

(i) the manufacturer or the processor intending to avail benefit of this notification shall register himself under rule 9 of the Central Excise No.2) Rules, 2001;

     ³[Provided that ⁷[for exports to Bhutan], the provisions of this notification shall be applicable only where payment is in freely convertible currency.

     Explanation.- For the purposes of this notification, "Freely convertible currency" means Australian Dollars, Austrian Schillings, Baharin Dinars, Belgian Francs, Canadian Dollars, Danish Kroners, Deutsche Marks, European Currency Units (Euros), 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 the 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).]

(ii) provisions of the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 shall be followed, mutatis mutandis;

     Provided that the manufacturer may furnish a general bond without surety or security, or a letter of undertaking in the Form specified in Annexure-II to the Ministry of Finance (Department of Revenue) notification No.42/2001-Central excise(N.T.) dated, the 26th June, 2001 in lieu of a bond;

(iii) the manufacturer or processor shall, while filing declaration under the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001, also declare ratio of input and output and rate of duty payable on excisable goods to be procured without payment of duty;

(iv) the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise shall also verify the correctness of the ratio of input and output and other particulars mentioned in the declaration filed before commencement of export of such goods. He may, if necessary, call for samples of finished goods or inspect such goods in the factory of manufacture for verifying the declarations. He shall, after being satisfied about the correctness of declarations, countersign the application in the manner specified in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001;

(v) The manufacturer or processor may remove the excisable goods so received as such or after these have been partially processed during the course of manufacture or processing of finished goods to a place outside the factory –

      (a) for the purposes of test, repairs, refining, reconditioning or carrying out any other operation necessary for the manufacture or processing of the finished goods and return the same to his factory without payment of duty for further use in the manufacture or processing of finished goods or remove the same without payment of duty in bond for export, provided that the waste, if any, arising in the course of such operation is also returned to the said factory of the manufacture or processing; or

      (b) for the purpose of manufacture of intermediate products necessary for the manufacture or processing of finished goods and return the said intermediate products to his factory for further use in the manufacture or processing of finished goods without payment of duty or remove the same, without payment of duty in bond for export, provided that the waste, if any, arising in the course of such operation is also returned to the factory of manufacturer or processor; and

      (c) any waste arising from the processing of the excisable goods may be removed on payment of appropriate duty as if such waste is manufactured in the factory of the manufacturer or processor;

(vi) The goods shall be exported on the application in Form ARE-2 specified in the Annexure and the Procedures specified in the Ministry of Finance (Department of Revenue) notification No.42/2001-Central Excise (N.T.), dated the 26th June, 2001 (vide G.S.R.471(E), dated the 26th June, 2001, shall be followed.

⁴[(vii) ⁸[for export of goods to Bhutan], the conditions, safeguards and procedure specified in the Ministry of Finance (Department of Revenue) notification Number 45/2001-CE (N.T.) dated the 26th June, 2001 shall apply.]

Explanation I : "Duty" for the purpose of this notification means duties of excise collected under the following enactments, namely: -

(a) the Central Excise Act, 1944 (1 of 1944);

(b) the Additional Duties of Excise (Goods of Special Importance) Act,1957 (58 of 1957);

(c) the Additional Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978);

(d) any special excise duty collected under a Finance Act.

(e) additional duty of excise as levied under section 157 of the Finance Act, 2003 (32 of 2003).

(f) the National Calamity Contingent duty leviable under section 136 of the Finance Act, 2001 (14 of 2001), as amended by Section 169 of the Finance Act, 2003 (32 of 2003) which was amended by Section 3 of the Finance Act, 2004 (13 of 2004);

⁶[(g) the Education cess on excisable goods as levied and collected under section 91 read with section 93 of the Finance (No.2) Act, 2004 (23 of 2004).]

⁵[(h) the additional duty of excise leviable under clause 85 of the Finance Bill, 2005, the clause which has, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931 (16 of 1931), the force of law.]

¹[(i) Secondary and Higher Education Cess on excisable goods leviable under clause (126) read with clause (128) of the Finance Bill, 2007, which has, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931 (16 of 1931), the force of law.]

⁹[( j) Infrastructure Cess leviable under sub-clause (1) of clause 159 of the Finance Bill, 2016, which clause has, by virtue of the declaration made in the said Finance Bill under the Provisional Collection of Taxes Act, 1931 (16 of 1931), the force of law. ]

Explanation II. For the removal of doubt, it is clarified that the goods manufactured or processed using the excisable goods so procured without payment of duty under this notification shall be exported in terms of sub-rule (1) of rule 19 of the Central Excise Rules, 2002

 

Annexure
ARE 2 No.______________

Original (White)
Duplicate (Buff)
Triplicate (Pink)
Quadruplicate (Green)
Quintuplicate (Blue)

Form A.R.E. 2

Combined application for removal of goods for export under claim for rebate of duty paid on excisable materials used in the manufacture and packing of such goods and removal of dutiable excisable goods for export under claim for rebate of finished stage Central Excise Duty or under bond without payment of finished stage Central Excise Duty leviable on export goods.

To

The Superintendent of Central Excise.
(Address)

___________________ (full postal address)

 

1. Particulars of the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise from whom rebate shall be claimed / with whom bond is executed and his complete postal address __________________

2. I / We ______________ of ________________ propose to export the under mentioned goods (details of which are given in Table 1 below) to ____________________ (country of destination) by *air/sea / land /post parcel* under claim for rebate of duty paid on excisable materials used in the manufacture and packing of such goods.

3. *The finished goods being exported are not dutiable

or

We intended to claim the rebate of Central Excise Duty paid on clearances of goods for export under notification 40/2001-Central Excise (N.T) dated 26th June, 2001 issued under Rule 18 of Central Excise (No.2) Rules, 2001.

or

The Export goods are intended to be cleared without payment of Central Excise Duty under notification 42/2001-Central Excise (N.T) dated 26th June, 2001 issued under Rule 19 of Central Excise (No.2) Rules, 2001.

TABLE 1
(Details of goods to be exported)

Sl. No.	Descrip- tion of pack- ages	Marks & Nos. on pack- ages	Gross Weight	Net Weight and quantity of goods**	Description of finished goods	Value	Finished Stage Central Excise Duty		Invoice No. & date	Bond/ Under- taking executed under rule 19 (if any)	Amount of Rebate Clai-med under Rule 18	Rem-arks
							Rate	Amount
1	2	3	4	5	6	7	8	9	10	11	12	13

*Strike out portion not applicable

Quantity of goods to be furnished in units of sale where it is different than weight. #Write NA where exports are under bond/letter of undertaking in terms of Rule 19 or where goods are not chargeable to duty

TABLE 2

Details of duty paid excisable Materials and Packing materials used in manufacture of export goods for which rebate under notification _________ dated _________is being claimed

S. No.	Name/ description of materials/ packing with technical specifi-cation/ Quantity	Central Excise Tariff Sub- heading	Unit	Qty used	Name of Sup- plier	Invoice No. & Value/ Unit Rs.	Asses- sable Value/ Unit Rs.	Rate of Central Excise duty	Duty Amt. per unit Rs.	Total Wastages		Rebate admissible under Rule 18 Rs.	Re- marks
										Re- cover- able	Irre- cover- able
1	2	3	4	5	6	7	8	9	10	11	12	13	14

Declaration :

a. We hereby certify that we have not availed facility of CENVAT credit under CENVAT Credit Rules, 2001

b. We hereby declare that the export is not in discharge of export obligation under a Value based Advance Licence issued prior to 31.03.95

c. We hereby declare that the materials on which input stage rebate in claimed are not sought to be imported under a Quantity Based Advance Licence issued prior to 31.03.95.

d. We further declare that we shall not claim any Drawback on export of the consignment covered under this application.

e. I / We hereby declare that the above particulars are true and correctly stated.

f. We have been granted permission by Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise Vide C.No.__________ date __________ for working under Notification ____________ dated________.

Time of Removal __________________

Signature of owner or his authorised agent with date

Name in Block Letters & Designation

SEAL

Note 1: The A.R.E. 2 should be submitted by the manufacturer at least 24 hours intended removal of goods for export, to the superintendent of Central Excise.

Note 2: A running serial of the factory starting with one every financial year should be allotted to every A.R.E. 2

FOR DEPARTMENT USE

PART A

CERTIFICATION BY THE CENTRAL EXCISE OFFICER

1. Certified that duty has been paid on the goods described above or *duty is payable as recoded at entry number___ in Daily Stock Account.

or

*the owner has entered into B-1 bond No ____________ /given an Undertaking ______under Rule 19 of Central Excise (No.2) Rules, 2001 with the ____________________________ or *the finished goods being exported are not dutiable

2. Certified that I have opened and examined the packages No. ___________________ and found that the particulars stated and the description of goods given overleaf read with the invoice and the packing list (if any) correct *[and that all the packages have been stuffed in the container No. _______________ with Marks _______________]*and the same has been sealed with Central Excise Seal/*One Time Seal (OST) No. ________________

3. I have verified with the records, the declaration of the manufacture given at Sl. No. 3 overleaf regarding non availment of credit under rule CENVAT Rules and found it to be true.

4. Certified that I have drawn three representative samples from the consignment and have handed over two sets thereof duty sealed to the manufacturer/ his authorised representative. (wherever feasible)

5. Certified that the material consumption's indicated in Table 2 overleaf are in accordance with the declaration No. ________ filed by ________ on __________

Place : __________________
Date : __________________

Signature (Name in Block Letters) Inspector of Central Excise	Signature (Name in Block Letters)   Superintendent of Central Excise
*Strike out inapplicable portions

Note 3 : The details given in table 2 may be verified by the Superintendent of Central Excise subsequent to clearances. For this purpose a detailed verification report may be submitted by the Superintendent to the Assistant Commissioner of Central Excise along with Triplicate copy of A.R.E. 2

Note 4 : The original -duplicate and sixtuplicate shall be returned to the manufacturer for presenting to the Customs Officer.

PART B

Certification by the Customs Officer

1. Certified that I have examined the consignment described overleaf, and the seals on the packages were found intact and I have satisfied myself that particulars of the consignment are as specified overleaf except for the shortages mentioned below:
_____________________________________________________________________________

2. Certified that the exports are not under Duty Drawback Scheme. It is further certified that exports are not in discharge of export obligation under Value Based Advance Licence or a Quantity Based Advance Licence issued before 31.03.95.

3. Certified that all copies of Shipping Bill / Bill of export contain endorsement of A.R.E. 2 No. in the space provided for indicating ARE 1.

4. Certified that the consignment was shipped under my supervision under *Shipping Bill No. / Bill of Export No.____________ dated_______________which left for _________________ on _________________/ which passed the frontier on ____________

Duplicate copy of A.R.E. 2 Forwarded to Assistant/Deputy Commissioner of Central Excise …………. on ……………

Place

Date

Signature

(Name and designation of the Customs Officer in Block letters)

(Seal)

Note 5 : The customs shall send the duplicate to the address given at Sl. No. 1 over leaf and handover original and sixtuplicate to the exporter

PART C*

Rebate Sanction Order Under Rule 18(1)
(On Original, Duplicate and Triplicate)

Refund Order No. ______________ dated ______________ Rebate of Rs. ___________ (Rupees _____________ sanctioned vide cheque No.___________ dated ____________

Place ______________

Date ______________

Assistant/Deputy Commissioner of Central Excise

PART D

Rebate Sanction Order under rule 18(2)
(On Original, Duplicate and Triplicate)

Refund Order No. _______________ dated ______________________ Rebate of Rs. ___________________ (Rupees________________________________ sanctioned vide cheque No. ___________________ dated __________________

Place __________________
Date _______________

Assistant/Deputy Commissioner of Central Excise

*Strike out inapplicable portions
2. This notification shall come into force on 1st July, 2001.

F.No.209/18/2001-CX.6

(P.K. Sinha)

Under Secretary to the Government of India

************************************

Notes :

[As amended by Notification No. 23/2003-C.E. (N.T.), 45/2003-C.E. (N.T.), 10/2004-C.E. (N.T.), 15/2004-C.E. (N.T.), and

1. Has been inserted vide Notification No. 18/2007 CE (NT) dated 8/3/2007

2. The phrase "except Nepal and Bhutan" has been omitted vide Notification No. 19/2005 CE(NT) dated 29/4/2005

3. Has been inserted vide Notification No. 19/2005 CE(NT) dated 29/4/2005

4. Has been inserted vide Notification No. 19/2005 CE(NT) dated 29/4/2005

5. Has been inserted vide Notification No. 15/2005 CE (NT) dated 1/3/2005

6. Has been substituted vide Notification No. 33/2004 CE (NT) dated 29/10/2004

7. Substituted vide notification no. 27/2011 CE(NT) dated 5-12-2011 w.e.f. 1.3.2012, before it was read as, “for exports to Nepal and Bhutan”

8. Substituted vide notification no. 27/2011 CE(NT) dated 5-12-2011 w.e.f. 1.3.2012, before it was read as, “for export of goods to Nepal and Bhutan”

9. Inserted vide Not. 26/2016 - Dated 5-5-2016