DBK_______________________ VBAL/QBAL Export Declarations - Further Clarifications

Circular No.20/1995-Cus.(DBK) date 8/3/95

Sub:- Value/Quantity Based Advance Licences - Instructions regarding-

Your attention is invited to Ministry's instructions of even number dated the 4th January, 1995 (Circular No. 1/95) and subsequent telex dated 13th January, 1995 regarding filing AR-4 alongwith the Shipping Bills.

2. Situation in which Modvat certificate not required.

On re-examination of above instructions, it is further clarified that in the following situations, certificate regarding non-availment of benefit of modvat under Rule 57-A (Rule 56-A since rescinded) of the Central Excise Rules, should not be insisted upon:-

(i) The export goods which are non-excisable i.e. goods which are not specified in the Schedule to the Central Excise Tariff Act, 1985; or

(ii) Goods which are unconditionally exempted from payment of Central Excise duty; or

(iii) Non-modvatable goods i.e. export goods (final products) which are not specified under the Notification issued under Rule 57A of Central Excise Rules.

3. Where the export goods are manufactured by/procured from SSI Unit:

Where the export goods are claimed to have been manufactured in SSI Unit, or procured by a merchant exporter from SSI Unit, i.e. the Unit is working under Central Excise Notification No. 1/93-CE dated 28.2.1993 availing total . duty free concession upto Rs. 30 lakhs, the exporter shall furnish the necessary declaration on/with the Shipping Bill at the processing stage. Such exporters would produce the attested acknowledged copy of the Declaration filed by the SSI Unit with the Jurisdictional Assistant Collector in lieu of the AR-4. Instructions issued regarding production of AR-4 at the time of processing/examination of goods/logging of Shipping Bills would mutatis-mutandis if apply to this above document also.

However, in Notification No.1/93-CE, SSI Units have also been given an option to avail Modvat. SSI Units availing Modvat would be 'paying excise duties and therefore such units would be clearing their export goods under AR-4 procedure. The existing instructions regarding scrutiny of shipping BUI/AR-4 and logging the DEEC Books towards discharge of Export Obligation, would apply to these cases also.

4. Certificate regarding non-availment of benefit of Rule 12(1)(b) and 13(1)(b) (old Rules 191-A/191-B):

All exporters (manufacturers/merchant exporters) exporting goods, which are specified for the benefit of Rules 12(1)(b) and 13(1)(b) (old Rules 191-A/191-B) in term of Central Excise Notification in force for such concessions must be required to produce a certificate regarding non-availment of the said benefits. Those export goods which are manufactured by SSI Unit working under Rs. 30 lakhs exemption limit or exporting unconditionally exempted goods, shall also produce a certificate of non-availment of the said Rules. Where the goods arc not exported under AR-4 (claim for rebate), this certificate will be insisted upon at the stage of logging of the DEEC Book in respect of each shipment before endorsing of the DEEC Book for discharge of Export Obligation. In the absence of the requisite certificate, the shipment shall not be accounted towards discharge of Export Obligation.

Instructions contained in Telex F.No. 605/1/95-DBK dated 21.2.1995 stand amplified on the the points.

Sd/-
(Sunil Kumar)
Director (Drawback)

F.No.605/6/94-DBK(PT.II)

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