9911796707
TMI BlogExports without payment of Central Excise Duty in bond under Rule 13(1)(a) - Procedure regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... t payment of Central Excise Duty. 2. The salient features of the new Rules and Notifications issued thereunder are briefly summarized below :- 2.1 Self Removal Procedure Now the exporters are being allowed to take clearances for export without the presence and examination of export goods by the Central Excise Officer. However this facility shall not be available to export of excisable commodities under physical control. 2.2 AR 4 and AR 4A are merged The existing AR 4 and AR 4A forms have been merged. Now only one single type of AR 4 is required to be filed by exporters in all the situations namely :- • Export clearances on their own without examination by the Central Excise Officer whether under claim for rebate or under bond. • Export clearances under Central Excise seal whether under claim for rebate or under bond. 2.3 Option of executing bond either with Maritime Collector or Jurisdictional Assistant Collector of Central Excise. (a) The number of Maritime Collectors has been presently reduced to seven. (b) Even where the export is from any of the port, airport office falling within the jurisdiction of Maritime Collector of Central Excise, the option is available to exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of particular B-1 bond, amount of bond should be equal at least to the duty chargeable on the goods to be exported. In case of general B-1 bond amount of the bond would be equal to the full duty on the exporters estimate of the maximum quantity of the excisable goods likely to be in transit during the period between clearance from the factory and acceptance of proof of export. In case of B-1 general bond a running bond account in profoma of Annexure-I shall be maintained by the authority before whom the bond is executed. The manufacturer-exporter who have executed B-16 bond are not required to execute separate bond to cover duty on goods exported without payment of Duty. 4.2 Special facility of certain categories of exporters : Following categories of exporters need not furnish any Bank Guarantee or Cash Security for the export bond. Bond with Surety would suffice in these cases. - Super Star Trading Houses - Star Trading Houses - Trading Houses - Export Houses - Registered Exporters (registered with relevant Export Promotion Council) 4.3 Extent of Security or Bank Guarantee : Other manufacturer-exporters may execute B-1/B-16 bond with 10% security/bank guarantee. Merchant e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facturers that once they permit the Bond executed by them for exports by merchant-exporters, it would be the manufacturer's responsibility for accountal of the export goods. 4.5 Bonds to be executed by Merchant-Exporters 4.5.1 With jurisdictional Assistant Collector : Where a merchant-exporter desires to export excisable goods manufactured in a factory or number of factories, he can execute a B-1 bond to cover a particular consignment or a consolidated B-1 general bond, to cover series of export consignments from the same factory, before the Assistant Collector of Central Excise having jurisdiction over the factory. 4.5.2 With the Maritime Collector of Central Excise : Where the export is from one of the port, airport or post office falling within the jurisdiction of Maritime Collector of Central Excise, the option is available to the Merchant-Exporter to execute the particular bond or the consolidated bond before concerned Maritime Collector of Central Excise. In case of a particular B-1 bond, the Merchant-Exporter should obtain an attested photocopy of the Bond executed before the Maritime Collector of Central Excise and produce the same at the time of presentation of AR 4 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rehouse and suitable intimation sent to him by the Maritime Collector of Central Excise of port 'X'. On receipt of intimation of Block Transfer, the Assistant Collector of Central Excise having jurisdiction over the factory shall treat the same as Bond executed before him and shall be responsible for monitoring the proof of export. However where it becomes necessary to recover duties, the action for recovery will have to be taken by the Maritime Collector of Central Excise before whom the bond is executed. 4.5.5 Where bond is executed by the merchant-exporter, it shall be necessary that the AR 4 is signed by both the merchant-exporter and the manufacturer. 4.6 Running Bond Account Every Central Excise Authority before whom a consolidated B-1 general bond has been executed shall maintain a running bond account in the proforma of Annexure 1. Whenever any block transfer are made in favour of other Central Excise authority, debit shall be made in the account. Suitable debit shall also be made whenever exports are allowed against the bond. On acceptance of the proof of export the bond account shall be credited to the extent the debit was made while permitting the exports. The runnin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s true, he will sign at appropriate places in the four copies of AR 4 submitted to him and put his stamp with his name and designation below his signature. He would then dispose of the triplicate, quadruplicate, quintuplicate and sixtuplicate copies of AR 4 as under :- Triplicate To the authority before whom the bond is executed and who will accept the proof of export i.e. Maritime Collector of Central Excise or the Assistant Collector of Central Excise declared by the exporter on the AR 4. This copy on the request of exporter may be sealed and handed over to the exporter/his authorized agent for presenting to the authority. (ii)quadruplicate To the Chief Accounts Officer in the Collectorate Headquarters. (iii)Quintuplicate Office copy to be retained by the Central Excise Officer. (iv)Sixtuplicate To be to given the exporter or his authorized agent in a sealed cover. Procedure for exports under Central Excise seal : 6.1 Where the exporter desires the sealing of the goods by the Central Excise officers so that the export goods may not be examined by the Customs Officers at the Port/Airport of shipment, he should present an AR4 application in sixtuplicate to the Superin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 1 for each calendar year and with the exporter's name. Under proviso to rule 185 (1) of Central Excise Rules, 1944, Collectors are empowered to relax this requirement (Please see Para 15.5) AR 4 Form : 8.1 The different copies of AR 4 forms should be of different colours indicated below (i) Original - White (ii) Duplicate - Buff (iii) Triplicate - Pink (iv) Quadruplicate - Green (v) Quintuplicate - Blue (vi) Sixtuplicate - Yellow It will be sufficient if the copies of AR 4 contain a colour band on the tip or right hand corner in accordance with above colour scheme. 8.2 Exporters should be advised to take adequate care in filling up the AR 4 proforma. The authority before whom the bond is executed or in whose favour BLOCK TRANSFER is obtained (who is also the authority for accepting the proof of export) should be clearly indicated on the AR 4 along with its complete postal address at appropriate place in the AR 4. The applicable portions should be carefully retained and inapplicable portion struck off. The exporters are now required to give following certificates/declaration. "We hereby certify that the above mentioned goods have been manufactured. (a) availing facil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exporter had executed the bond before such Maritime Collector of Central Excise or has obtained BLOCK TRANSFER in his favour and declared the same of AR 4, he will file as proof of due exportation the documents listed in para 10.1 above to Maritime Collector of Central Excise who shall compare the original AR 4 received from the exporter with the triplicate copy of the AR 4 received from the Central Excise Officer and the duplicate AR 4 received from the Customs Officer either direct or from the exporter in Customs seal cover. The Maritime Collector after due scrutiny and verification of the said AR 4s, will record the proof of export and discharge the bond and also inform the fact of acceptance of the proof of export to the Jurisdictional Superintendent of Central Excise. Where the proof of export is admitted against BLOCK TRANSFER, the Maritime Collector shall return the BLOCK TRANSFER to the authority before whom bond is executed and also intimate him the fact of acceptance of proof of export. 10.3 With Assistant Collector, Central Excise having jurisdiction over the factory : Where the exporter has executed the bond before the Assistant Collector having jurisdiction over the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allan No .................... dated...................... of...................... (Name of the Bank)" 11. Small Scale Units : Units which are otherwise eligible for benefit under any of the Central Excise Notification granting partial or full Exemption based on value of clearances for home consumption may be exempted from filing AR 4 and Bond. In view of the exemption from filing AR 4 and bond, the facility of sealing of the export consignment at place of despatch under Rule 187 of Central Excise Rules, 1944 cannot be availed. This shall be extended to only such of the units which exports whole of their production either themselves of through merchant-exporters. However, where exports are by merchant-exporters, it will be necessary that the shipping bill /bill of export contains the name of the unit as manufacturer. Units who are availing. - facility of Madvat credit under Rule 57A of Central Excise Rules, 1944. - facility under Rule 12(1)(b) of Central Excise Rules, 1944 - facility under Rule 13(1)(b) of Central Excise Rules, 1944 shall follow regular procedure of AR 4 and bond for exports. 12. Diversion of Export Goods for home consumption - Cancellation of Export documen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assistant Collector of Central Excise having jurisdiction over the factory from where goods were cleared for exports shall seek verification of the goods including the description of packages, identification marks etc. from the Superintendent of Central Excise having jurisdiction over the place where the goods are stored pending diversion for home consumption. After receipt of verification report regarding storage from the Superintendent of Central Excise and after working out the Assessable value [under Section 4 of the Central Excises and Salt Act, 1944] and the duty leviable, he shall recover the duty. After satisfying that the duty has been paid, he would cancel the Original, Duplicate and Sixtuplicate copies of AR 4 and note the fact of Cancellation in his records. He will also cancel the bond and inform the Concerned Maritime Collector of Central Excise. 13. Re-entry of the goods, cleared for export under Bond but not actually exported, in the factory of manufacture. Sub-rule (1A) of Rule 173M of the Central Excise Rules, 1944, empowers the Collectors of Central Excise to allow return of goods cleared for export under bond but not actually exported provided such goods are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be maintained in the form as shown in Annexure 50. 14.2 After the processing etc. operations are completed, a fresh AR 4/AR 4A/Invoice(s) will be issued by the Central Excise Officer, with a suitable endorsement thereon to the effect that no rebate/drawback in respect of the goods which are being re-exported as well as the goods used in the manufacture thereof is admissible. The disposal of the AR 4s shall be as usual, with necessary instructions by the Central Excise Officer to the Officer of original manufacturer. Miscellaneous 15.1 Rate of Duty : In terms of sub-rule (3) of Rule 9A of the Central Excise Rules, 1944, in case of exports under bond, in absence of proper proof of export, the rate of Central Excise duty leviable is the rate in force on the date on which Central Excise duty is paid. Central Excise Officers dealing with the situations, where it becomes necessary to recover Central Excise duty on goods cleared for export under bond, such as short shipment or diversion of export goods for domestic consumption etc. should ensure that the duty liability is calculated with reference to rate of duty in force on the date of actual payment. 15.2 Numbering of AR 4 : Ever ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (qty.) of .......... (description of goods) were taken clearance without payment of Central Excise duty on your execution of Bond No............... On scrutiny of the documents submitted by you as proof of export, it is observed that only .................... Qty. of ................... (Description of goods) have been shipped under S.Bo.No./Bill of Export No. ...................... dated ....................... from ................ (Name of port/airport/ICD/LCS). The quantity short shipped is................... (qty.) of ....................... (description of goods) on which Central Excise duty payable works out to be Rs. ........................... (as detailed in Annexure.)
You are hereby called upon to deposit the difference within 10 days failing which it should be explained to (Name of officer to be given) as to why action shall not be taken for recovery in terms of the Bond executed and other provisions of Central Excise Law.
You are further required to state as to why penal actions shall not be taken against you for contravention of C.E.Rules. (Relevant rules to be cited).
Supdt. of Central Excise
(Seal) X X X X Extracts X X X X X X X X Extracts X X X X
|
