GOODS EXPORTED UNDER LUT, PROOF OF EXPORT SUBMITTED. BRC AWAITED., Central Excise

[Anil Gagneja]

WE HAVE EXPORTED THE GOODS UNDER LUT AND FILED THE PROOF OF EXPORT WITH RELEVANT EXPORT DOCUMENTS WITHOUT BRC.

KINDLY CONFIRM BRC IS MANDATORY REQUIREMENT OF PROOF OF EXPORT OR NOT.

Posts / Replies

[P Ovhal]

Dear Sir

It is not Mandatory to Submit BRC with POE

[pradeep khatri]

Even if ARE-1 is not proper, proof of export by other evidence like Invoice, Bill of Lading and Shipping Bill is Sufficient – CCE v. TISCO (Tube Division) 2003 (156) ELT 777 (CEGAT).

 

In Clipsal Industries v CCE 2004 (174) ELT 188 (CESTAT SMB), it was held that the requirement is that goods should be exported within six months.  There is no requirement that proof of export must be submitted within six months.

 

Even if, original ARE-1 form is not produced, rebate is admissible on basis of other documentary evidence – Hebenkraft In re 2001 (136) ELT 979 (GOI)*

 

Even if, ARE-1 is not produced, Invoice, Bill of lading and Shipping bills are sufficient as proof of export. Kansal Knitwears v CCE (2001) 136 ELT 467 (CEGAT) – relying on Shree Krishna Pharmaceuticals v CCE 1988 (36) ELT 190 (CEGAT) – same view in Model Buckets v CCE (2007) 217 ELT 264 (CESTAT). Shreeji Colour Chem v CCE (2009) 233 ELT 367 (CESTAT).

[Mangesh Lokre]

Hi We agree with the views of our learned brothers.

BRC is not the mandatory documents while submission of proof of export.

Even if, the ARE-1 is lost, the Excise Authority will check with customs separately.

But for the Query raised during the scrutiny of the Drawback, then offier may ask for BRC

 

 

[r.rajkumar kumar]

yes how duty drawback has given for earning revenue from other country other than India.How customs knows that the exporter has got the money. It is either brc, or negative statement from bankers, or certifiation from statutory auditors. chartered accpunt company. .r.rajkumar

[K V V B gangadhar]

Boss,

For the initial records, all other docs like ARE-1, Shipping bill, BL, Invoice etc are sufficient.

However, for making the record complete, the BRC is required as excise/customs/DGFT/RBI may demand BRC if situation demands.

In fact, the export transcation is incomplete without BRC.

Rgds

Gangadhar

[Mangesh Lokre]

Dear Mr Gangadhar

AS far as Excise angle is concern, the ARE-1, S/B, B/L or AWB etc are sufficient.

and for BRC, the export realisation are governed by FEMA which are monitored by RBI.

So, for submission of PoE with Excise, we dont feel that the BRC are required.

Also please note that the BRC can be produced in case of Commercial Shipments, in case where the goods are exported as free supply ( may be against short supply, defective material etc) exporter cannt produce the BRC.

We hope you will agree with the views.

 

[K V V B gangadhar]

Dear Mangesh, My answer is below your comments)

AS far as Excise angle is concern, the ARE-1, S/B, B/L or AWB etc are sufficient.

 Refer my earlier answer i,e  For the initial records, all other docs like ARE-1, Shipping bill, BL, Invoice etc are sufficient.)

and for BRC, the export realisation are governed by FEMA which are monitored by RBI.

So, for submission of PoE with Excise, we dont feel that the BRC are required.

( Just for submission of PoE,  BRC is not mandatory)

Also please note that the BRC can be produced in case of Commercial Shipments, in case where the goods are exported as free supply ( may be against short supply, defective material etc) exporter cannt produce the BRC.

( For NON COMMERCIAL SHIPMENTS : Except for samples( for certain limit only) though BRC can not be obtained, but you are supposed to have GR waiver / NRC : No Remittance certificate from Bank for Replacement exports, Repair and Return exports, and temporary imports which are reexported after project is completed)

We hope you will agree with the views. ( I will not agree, because BRC is very important document to complete the export process and just for time being for PoE purpose BRC may not be mandatory, but to complete the records, BRC required to face any future Audits etc)

[NAGASUBRAMANIAN venkatraman]

For Getting Proof of Export from the Excise Department, BRC is unwarranted and unnecessary.  Because, the Wxport made physical can easily be verified by them by the triplicate copy of the A.R.E1, can easily be sent by the excise to customs for due sign and verification.  As the other freinds said the Triplicate copy is the inter departmental record between Excise and Customs.  But for the puposes of getting benefilts from other depatments as DGFT and RBI etc., BRC is absolutely needed.

This is becuase the Excise people verfies the physical export of the goods and all the other benefits are based on the exported vale\ue

[K V V B gangadhar]

In general, Excise will not ask for BRC. But in excise audit / Audit General, they can demand BRC copy.

The main reason why Excise is not bother about BRC is RBI is taking care of GR/SDF where the payment should reach exporter bank in a specified time. If the payment not received, you may get alert / notice from Bank and RBI.  Here BRC is nothing but payment receipt/confirmation.

In any case, if Customs signed ARE-1 Copy not submitted to Excise with in specified period from export date, then BRC is helpful to show as proof of export to Excise authorities

Rgds

Gangadhar