G.S.R. (E). - In exercise of the powers conferred by sub-rule (3) of rule 19 of the CentralExcise (No.2) Rules, 2001, the Central Board of Excise and Customs hereby notifies theconditions and procedures for export of all excisable goods, except Bhutan [OLD- except to Nepal and Bhutan ] withoutpayment of duty from the factory of the production or the manufacture or warehouse or any otherpremises as may be approved by the Commissioner of Central Excise, namely: -

(In above opening paragraph, the words "except Bhutan" has been substituted vide NTF. NO. 26/2011-CE (NT), DT. 05/12/2011 come into force from 01/03/2012)

1. Conditions: -

(i) that the exporter shall furnish a general bond in the Form specified in Annexure-I to theAssistant Commissioner of Central Excise or the Deputy Commissioner of Central Excisehaving jurisdiction over the factory, warehouse or such approved premises, as the casemay be, or the Maritime Commissioner or such other officer as authorised by the Boardon this behalf in a sum equal at least to the duty chargeable on the goods, with suchsurety or sufficient security, as such officers may approve for the due arrival thereof atthe place of export and their export therefrom under Customs or as the case may be postalsupervision. The manufacturer-exporter may furnish a letter of undertaking in the Formspecified in Annexure-II in lieu of a bond.

(ii) that goods shall be exported within six months from the date on which these were clearedfor export from the factory of the production or the manufacture or warehouse or otherapproved premises within such extended period as the Assistant Commissioner of CentralExcise or Deputy Commissioner of Central Excise or Maritime Commissioner may inany particular case allow;

(iii) that when the export is from a place other than registered factory or warehouse, theexcisable goods are in original packed condition and identifiable as to their origin;

(iv) that export of excisable goods which are chargeable to nil rate of duty or are wholly exempted from payment of duty, other than goods cleared by a hundred per cent export-oriented undertaking, shall not be allowed under this notification;

(Above Condition (iv) has been inserted vide NTF. NO. 24/2010-CE (NT) DT. 26/05/2010)

[OLD-
(iv) OMITTED]

(In paragraph 1, condition (iv) has been omitted vide NTF. NO. 56/2003-CE(N.T.), DT. 17/06/2003)

[OLD (iv) that exports of mineral oil products falling under Chapter 27 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as stores for consumption on board an aircraft on foreign run to any country other than Nepal shall be subject to payment of an amount equal to the amount specified, as applicable in the Table in clause (c) of the first Paragraph of the notification No. 40/2001-Central Excise (N.T.), dated the 26th June, 2001 issued under rule 18 of the Central Excise (No.2) Rules, 2001.

(Condition (iv) has been substituted vide Ntf. No. 25/2002-CE(NT), Dt. 22/07/2002 in para 1)

[OLD
(iv) that exports of mineral oil products falling under Chapter 27 of the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as stores for consumption on board an aircraft on foreign run shall be subject to payment of an amount equal to the amount specified, as applicable in the TABLE in clause (c) of the first paragraph of the Ntf. No.40/2001-CE(NT), dated the 26th June, 2001 issued under rule 18 of the Central Excise (No.2) Rules, 2001.

(Above condition (iv) has been substituted vide Ntf. No.01/2002-CE(N.T.), dt. 16/01/2002)

(iv) that exports of mineral oil products falling under Chapter 27 of the First Schedule to theCentral Excise Tariff Act, 1985 (5 of 1986) as stores for consumption on board of anaircraft on foreign run shall be subject to conditions and limitations, to be appliedmutatis mutandis, as notified in the Ministry of Finance (Department of Revenue),Notification No.40/2001-Central Excise(N.T.), dated 26th June, 2001 issued under rule18 of Central Excise (No.2) Rules, 2001.]

2. Procedure: -

1. Procedure for removal without payment of duty under this notification: –
   
   (a) Afterfurnishing bond, a merchant-exporter shall obtain certificates in Form CT-1 specified inAnnexure-III issued by the Superintendent of Central Excise having jurisdiction over the factoryor warehouse or approved premises or Maritime Commissioner or such other officer as may beauthorised by the Board on this behalf and on the basis of such certificate he may procureexcisable goods without payment of duty for export by indicating the quantity, value and dutyinvolved therein;
   
   (b) the exporter who has furnished bond shall ensure that the debit in bond account does notexceed the credit available therein at any point of time;
   
   (c) the manufacturer-exporter may remove the goods without payment of duty after furnishing theletter of undertaking as specified under condition (i).
   
   (d) such General bond or letter of undertaking shall not be discharged unless the goods are duly exported, to the satisfaction of the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise or Maritime Commissioner or such other officer as may beauthorised by the Board on this behalf within the time allowed for such export or are otherwiseaccounted for to the satisfaction of such officer, or until the full duty due upon any deficiency of goods, not accounted so, and interest, if any, has been paid.
    
2. Sealing of goods and examination at place of despatch. -

(a) For the sealing of goods intended for export at the place of despatch, the exporter shall present the goods along with four copies of application in the Form A.R.E.-1 specified in Annexure-IV to the Superintendent or Inspector of Central Excise who will verify the identity of goods mentioned in the application and the particulars of the duty paid or payable, and if found in order, he shall seal each package or the container in the manner as may be specified by the Commissioner of Central Excise and endorse each copy of the application in token of having such examination done;

Provided that where the nature of goods is such that the goods cannot be sealed in a package or a container such as coal or ore, etc., exemption from sealing of package or container may be granted by the Principal Chief Commissioner or Chief Commissioner of Central Excise subject to safeguard as may be specified by him in the permission.

The safeguards shall, inter-alia, include the following:-

(i) method of verification of quantity and quality of goods including testing of goods where necessary at the place of removal or despatch and at the port of export or SEZ, where the goods are received;

(ii) no remission of duty shall be allowed for loss of goods within transit;

(iii) permission shall be given on case to case basis for a specified period not exceeding one year at a time and may be withdrawn in case of misuse; and

(iv) any additional safeguards as may be specified.

(Above proviso has been inserted vide NTF. NO. 23/2015-CE (NT), DT. 30/10/2015)

(b) the said Superintendent or Inspector of Central Excise shall return the original and duplicate copies of application to the exporter and retain the quadruplicate copy;

(c) the triplicate copy of application shall be sent to the officer to whom bond or letter ofundertaking has been furnished, either by post or by handing over to the exporter in a tamperproof sealed cover after posting the particulars in official records;

(d) the exporter may prepare quintuplicate copy of application for claiming any other exportincentive. This copy shall be dealt in the same manner as the original copy of application;

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

iii. Despatch of goods by self-sealing and self-certification. –

(a) Where the exporter desires self-sealing and self-certification for removal of goods from the factory, warehouse or any approved premises, the owner, the working partner, the Managing Director or the CompanySecretary, of the manufacturing unit of the goods or the owner of warehouse or a person dulyauthorised by such owner, working partner or the Board of Directors of such Company, as thecase may be, shall certify on all the copies of the application that the goods have been sealed in his presence, and shall send the original and duplicate copies of the application along with the goods at the place of export, and shall send the triplicate and quadruplicate copies of the application to the Superintendent or Inspector of Central Excise having jurisdiction over the factory, warehouse, any such approved premises within twenty four hours of removal of the goods;

Provided that where the nature of goods is such that the goods cannot be sealed in a package or a container such as coal or ore, etc., exemption from sealing of package or container may be granted by the Principal Chief Commissioner or Chief Commissioner of Central Excise subject to safeguard as may be specified by him in the permission.

The safeguards shall, inter-alia, include the following:-

(i) method of verification of quantity and quality of goods including testing of goods where necessary at the place of removal or despatch and at the port of export or SEZ, where the goods are received;

(ii) no remission of duty shall be allowed for loss of goods within transit;

(iii) permission shall be given on case to case basis for a specified period not exceeding one year at a time and may be withdrawn in case of misuse; and

(iv) any additional safeguards as may be specified.

(Above proviso has been inserted vide NTF. NO. 23/2015-CE (NT), DT. 30/10/2015)

(b) the Superintendent or Inspector of Central Excise shall, after verifying the particulars of the bond or letter of undertaking and endorsing the correctness or otherwise, of the particulars on the application, send to the officer to whom the bond or letter of undertaking has been furnished either by post or by handing over to the exporter in a tamper proof sealed cover after recording the particulars in the official records;

(c) The exporter may prepare quintuplicate copy of application for claiming any other exportincentive. This copy shall be dealt in the same manner as the original copy of application;

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

iv. Examination of goods at the place of export. – (a) On arrival at the place of export, the goods shall be presented together with original, duplicate and quintuplicate (optional) copies of the application to the Commissioner of Customs or other duly appointed officer;

(b) The Commissioner of Customs or other duly appointed officer shall examine the goods withthe particulars as specified in the application and if he finds that the same are correct andexportable in accordance with the laws for the time being in force, shall allow export thereof and certify on the 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 the Superintendent or Inspector of Central Excise sealed packages or container at the place of despatch, the officer of customs shall inspect the packages or container with reference to declarations in the application to satisfy himself about the exportability thereof and if the seals are found intact, he shall allow export.

(c) The Commissioner of Customs or the other duly appointed officer shall return the original and quadruplicate (optional copy for exporter) 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, with whom the exporter has furnished bond or a letter of undertaking.

(d) The exporter shall use the quintuplicate copy for the purposes of claiming any other exportincentive.

v. Cancellation of applications: (a) If the excisable goods are not exported, the AssistantCommissioner of Central Excise or the Deputy Commissioner of Central Excise or Maritime Commissioner or such other officer as authorised by the Board on this behalf, as the case may be, to whom the bond or letter of undertaking has been furnished, may, on written request for cancellation of application, cancel said application and allow diversion of goods for consumption in India subject to the sub-Para (b);

(b) The exporter shall pay the duty as specified in the application along with interest prescribed under section 11AA [OLD- section 11AB ]of the Central Excise Act, 1944 [OLD- interest at the rate of twenty four percent per annum ] on such duty from the date of removal for export from the factory or warehouse or any other approved premises till the date of payment of duty

(In above clause (v) in sub-clause (b) the words "section 11AA" has been substituted vide NTF. NO. 16/2016-CE (NT), DT. 01/03/2016 )

(In paragraph 2, in clause (v), in sub-clause (d) the words "interest prescribed under section 11AB of the Central Excise Act, 1944" has been substituted vide NTF. NO. 20/2007-CE(N.T.), DT. 19/04/2007)

(vi) Procedure in respect of exported goods subsequently re-imported and returned to thefactory: (a) Exported excisable goods which are re-imported for carrying out repairs, re-conditioning,refining, re-making or subject to any similar process may be returned to the factoryof manufacture for carrying out the said processes and subsequent re-export.

(b) Any waste or refuse arising as a result of the said processes shall be removed from the factoryon payment of appropriate duty or destroyed after informing the proper officer in writing at least7 days in advance and after observing such conditions and procedure as may be specified by theCommissioner of Central Excise and thereupon the duty payable on such waste or refuse may beremitted by the said Commissioner of Central Excise.
 

Explanation I.-For the purpose of this notification, “merchant-exporter” mean any exporter who procures and exports excisable goods manufactured by any other person.

Explanation II. - For the purposes of this notification, “Maritime Commissioner” means the Commissioner of Central Excise under whose jurisdiction one or more of the port, airport, land customs station or post office of exportation, is located.

(Explanation II has been substituted vide Ntf. No.80/2003-CE(N.T.), DT. 29/10/2003)

[OLD -
Explanation II.-For the purpose of this notification, “Maritime Commissioner” means the Commissioner of Central Excise under whose jurisdiction one or more of the port, airport orpost office of exportation is located in Mumbai, Kolkata, Chennai, Paradeep, Visakhapatnam,Cochin, Kandla and Tuticorin. ]

Explanation-III. For the purposes of this notification“duty” means, the duties of excise collected under the following enactments, namely:-

NTF. NO. 32/2004-CE(N.T.), DT. 29/10/2004)

[OLD-
(g) the Education Cess on excisable goods as levied and collected under Clause 81 read with Clause 83 of the Finance(No.2) Bill, 2004. ]

(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.

(Above (h) has been inserted vide NTF. NO. 15/2005-CE(N.T.), DT. 01/03/2005)

(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.

(Clause (i) has been inserted vide NTF. NO. 18/2007-CE(NT), DT. 08/03/2007)

(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.

(Above clause (j) has been inserted vide NTF. NO. 26/2016-CE (NT), DT. 05/05/2016 )

(Explanation -III above has been substituted vide NTF. NO. 16/2004-CE(N.T.), DT. 10/08/2004)

[OLD -
Explanation III.- For the purpose of this notification, "duty" includes additional duty of excise as levied under section 157 of the Finance Act, 2003 (32 of 2003).

(Explanation III has been substituted vide NTF. NO. 45/2003-CE(N.T.) DT. 14/05/2003)

Explanation III. - "Duty" for the purpose of this notification, includes, additional duty of excise as levied under clause 149 of the Finance Bill, 2003, 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 III has been inserted vide NTF. NO. 22/2003-CE(N.T.) DT. 24/03/2003)]

Annexure-I

General Bond with surety/security for removal for export of excisable goods without payment of duty for export
 

Signature(s) of obligor(s).

Date:

Place:

Witnesses

			(1) Name and Address 		Occupation			(2) Name and Address 		OccupationDatePlaceSignature(s) of surety (ies).Date:Place:Witnesses		(1) Name and Address 		Occupation				(2) Name and Address		Occupation

Annexure-II

For removal for export of excisable goods without payment of duty

To

The President of India (hereinafter called the "President"), acting through the AssistantCommissioner of Central Excise or Deputy Commissioner of Central Excise or the Maritime Commissioneror such Central Excise Officer duly authorised by the Central Board of Excise and Customs, constitutedunder the Central Board of Revenue Act, 1963 (54 of 1963) (hereinafter called “theBoard”)_____________________[Address of the office].

I/We ...................................of..........................…………… (Address of the factory) having Central ExciseRegistration No…………………………………………… , hereinafter called "the undertaker(s) includingmy/our respective heirs, executors/ administrators, legal representatives/successors and assigns by thesepresents, hereby jointly and severally undertake on this...................day of.................... to the President.
 

1. to export the excisable goods removed from my/our factory/warehouse/approved place of storagewithout payment of duty under rule 19 of the Central Excise (No.2) Rules, 2001 within six monthsfrom the date of such removal or such extended period as may be permitted by the jurisdictionalAssistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise or theMaritime Commissioner or the Central excise Officer duly authorised by the Board;
    
2. to observes all the provisions of the Central Excise (No.2) Rules, 2001and all such amendments theretoas may be issued from time to time to be observed, in respect of export of excisable goods to a foreigncountry;
    
3. to export the goods to the satisfaction of the Assistant Commissioner of Central Excise or the DeputyCommissioner of Central Excise having jurisdiction over the factory of production or manufacture
    
4. pay the excise duty payable on such excisable goods in the event of failure to export them, along with an amount equal to interest prescribed under section 11AA [OLD - section 11AB ]of the Central Excise Act, 1944 [OLD- twenty four percent interest per annum] on the amount of duty not paid, from the date of removal for export till the date of payment.

(In Annexure II in clause (d) the word, figures & letters "section 11AA" has been subsituted vide  NTF. NO. 16/2012-CE (NT), DT.17/03/2012 )

(In Annexure-II, in clause (d), the words "interest prescribed under 11AA [OLD section 11AB] of the Central Excise Act, 1944" has been substituted vide NTF. NO. 20/2007-CE(N.T.), DT. 19/04/2007)

I/We declare that this undertaking is given under the orders of the Board for the performance of enactsin which the public are interested.

Signature(s) of undertaker(s).

Date :
Place :

Witnesses
 

		(3) Name and Address 		Occupation				(4) Name and Address 		Occupation

Date
Place
 

Accepted by me on this................................................day of
.........................(month).................…………….....(year)
………………………………..of Central Excise, (Designation)
for and on behalf of the President of India.

Annexure-III

Serial Number______/___-___ (Financial Year).

Range
Division
Commissionerate
 

This is to certify that,
 

1. The exporter has furnished a Bond in Form [Specific/General]* for Rs___________________, which has been accepted by theAssistant Commissioner of Central Excise/the Deputy Commissioner of Central Excise in F.No. _______________________ onthe _________day of the ___________(month) ___________ (Year).
   
   OR
   Mr./Messers. ______________________________(Name and address) is/are registered under rule 9 of Central Excise (No.2)Rules, 2001 in this Range, having registration number__________________________________has furnished an undertaking inthe form specified under Notification No. /2001-Central Excise (N.T.) dated to the Assistant Commissioner of CentralExcise/the Deputy Commissioner of Central Excise, _____________________(Name of the Division or the Office) who hasaccepted the undertaking in F.No. _______________________ on the _________day of the ___________(month) ___________(Year).
    
2. The above-said exporter/manufacturer-exporter is permitted to obtain excisable goods for export under rule 19 of the CentralExcise (No.2) Rules, 2001 as per details specified overleaf. This certificate is valid upto one year from the date of issue specifiedbelow.

Name and Signature of the
Superintendent of Central Excise
["Seal"]

Dated:

(Address of the Range Office)
 

Name and address of the factory/ ___________________________________
warehouse/place of storage of the supplier ___________________________________

Registration Number of the factory/warehouse _________________________________

Details of the goods to be procured
 

I hereby declare that I have made a provisional debit of Rupees ............................................. (in both words and figures) in the BondAccount at serial No….................................. dated …………… and on this day and after the abovementioned debit, the balance in theBond Account is Rs. …………………………... .
 

Please find attested copy of the specific bond/Undertaking details of which is specified by the Superintendent of CentralExcise,_____________________________ (address) overleaf.

 

(Dated signature of the Exporter(s)
or his/ their authorised agents
and their seal.

Annexure-IV

Range...........
Division..............Address.....................
Commissionerate....................
 

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

To
 

1. availing facility/without availing facility of CENVAT credit under CENVAT Credit Rules, 2001
    
2. availing facility/without availing facility under Notification 41/2001-Central Excise (N.T) dated 26th June, 2001 issued under rule 18 of Central Excise(No.2) Rules, 2001.
    
3. availing facility/without availing facility under Notification 43/2001-Central Excise (N.T) dated 26th June, 2001 issued under rule 19 of Central Excise (No.2) Rules, 2001.

4. I/We hereby declare that the export is in discharge of the export obligation under a Quantity basedAdvance Licence/Under Claim of Duty Drawback under Customs & Central Excise Duties Drawback Rules,1995.

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

Time of Removal..................................

Signature of owner or his
Authorised agent with date.
Name in Block Letters & Designation (SEAL)

1. Certified that duty has been paid by debit entry in the Personal Ledger Account No. .........and/orCENVAT Account Entry No..……or recorded as payable in Daily Stock Account, on the goodsdescribed overleaf.
   OR
   Certified that the owner has entered into Bond No. ............ under Rule 19 of Central Excise (No.2)Rules, 2001 with the...........................……….[F.No.___________________], duly accepted by theAssistant Commissioner/Deputy Commissioner of Central Excise________ on _________(Date).
    
2. Certified that I have opened and examined the packagesNo.....……………………………………………......... and found that the particulars stated and thedescription of goods given overleaf and the packing list (if any) are correct and that all thepackages have been stuffed in the container No. ............... with Marks .................. and the samehas been sealed with Central Excise Seal/One Time Seal (OTS) No. .............
    
3. I have verified with the records, the exporter is only availing the export incentives, as specified inbox No.6. and found it to be true.
    
4. Certified that I have drawn three representative samples from the consignment (wherevernecessary) and have handed over, two sets thereof duly sealed to the exporter/his authorisedrepresentative.

Place.....................
Date ........................
 

Signature 						Signature(Name in Block Letters) 				(Name in Block Letters)Superintendent of Central Excise 			Inspector of Central Excise

Certified that the above-mentioned consignment was stuffed in Container No._____________________belonging to Shipping Line_________________ based on the “Let Export Order” given on____________day of.________(Month)__________year) on the Shipping Bill No______ dated________and sealed by seal/one time lock No._______________ in my supervision and the container was handedover to the Custodian M/s______________ for being shipped via ___________________(Name of thePort).
 

Certified that the above-mentioned consignment has been duly identified and has passed the landfrontier today at_______in its original condition under Bill of Exports No______________Place_____________ Date_____________.
 

Signature
(Name and designation of the CustomsOfficer in Block Letters)/
(Seal)

Place ………..
Date ……….
 

Signature of Post Master
(Seal)

Place ………..
Date ……….
 

Assistant/Deputy Commissioner/ Maritime
Commissioner of Central Excise

*Strike out inapplicable portions.

2. This notification shall come into force on 1 st July, 2001.

F.No.209/19/2001-CX.6



(P.K. Sinha)
Under Secretary to the Government of India

(Please refer NTF. NO. 10/2004-CE(N.T.), DT.02/06/2004)

(Please refer CIR NO.792/25/2004-CX, DT. 02/06/2004 - Export of resultant goods manufactured by using goods obtained without payment of duty under NTF. No.43/2001-CE(NT))

(Please refer CIR NO.758/74/2003-CX, DT. 29/10/2003 for Change in the definition of ‘Maritime Commissioner’)

(Note:- see

Ntf. No. 41/2001-CE(NT), dt. 26/06/2001
2. Ntf. No. 43/2001-CE(NT), dt. 26/06/2001
3. Ntf. No. 44/2001-CE(NT), dt. 26/06/2001
4. Cir. No. 581/18/2001-CE, dt. 29/06/2001
5. Cir. No. 582/19/2001-CE, dt. 29/06/2001
6. Cir. No. 603/40/2001-CE, dt. 29/11/2001
7. Cir. No. 605/42/2001-CE, dt. 29/11/2001)

8. (Please refer Cir No.635/26/2002-CX, dt.18/04/2002)

9. (Please refer Cir No.641/32/2002-CX, dt.26/06/2002)

10. (Pl. refer Cir. No. 676/67/2002-CX, Dt. 25/11/2002 for Suitable Guidelines related to Export Warehousing)

11. (Please refer Cir. No. 706/22/2003-CE, Dt. 08/04/2003 for Simplification of Export Procedure –when the Bonds can be furnished with Deputy/Assistant Commissioner of Central Excise)

[Note:- see following Parts of Chapters as mentioned in
New Central Excise Manual 2001 (w.e.f. 1/9/2001)
Part I of Ch. 7; Part II of Ch. 7; Part V of Ch. 7; Part VI of Ch. 7; Part II of Ch. 10;
*ANNEXURE NOs. 17; 23]