Excise Procedure



Excise Procedure : All excisable goods exported are exempt from payment of Central Excise duties for which two different procedures have been prescribed.




Rebate of Duty on Goods Export Procedure

Under the first procedure, known as Rebate of Duty on Goods Export the manufacturer has first to pay the excise duty on goods meant for export and then claim refund of the same after exportation of such goods to countries except Nepal and Bhutan. This is done under Rule 12 of Central Excise Rules. Under this rule, rebate of duty is granted for the finished stage as well as input stage. Rebate of duty in respect of the excisable materials used in the manufacture of exported goods shall not be allowed if the exporter avails of drawback allowed under the Customs and Central Excise Duties Drawback Rules. The following procedure should be followed while exporting under rebate of duty.


Removal of goods under claim of rebate from a factory or warehouse without examination by the Central Excise Officers :


The exporters are allowed to remove the goods for export on their own without getting the goods examined by the Central Excise Officers. Form AR4 in such cases should be prepared in sixtuplicate, giving all particulars and declarations. The exporter shall deliver triplicate, quadruplicate, quintuplicate and sixtuplicate copies of AR4 to the Superintendent of Central Excise having jurisdiction over the factory or the warehouse, within twenty four hours of the removal of the consignment and would retain the original and duplicate copies for presenting along with the consignment to the Customs Officer at the point of export.


The jurisdictional Superintendent of Central Excise examines the information contained in AR4 and verifies the facts of payment of duty and other certificates/declarations made by the exporter. After he is satisfied that the information contained in the AR4 is true, he signs at appropriate places in the four copies of AR4 submitted to him and puts his stamp with his name and designation below his signature. He would then dispose of the triplicate, quadruplicate, quintuplicate and sixtuplicate copies of AR4 as under.


Triplicate : To the rebate sanctioning authority viz….Maritime Commissioner of Central Excise or the Assistant Commissioner of Central Excise declared by the exporter on the AR4…. This copy on the request of exporter may be sealed and handed over to the exporter / his authorized agent for presenting to the rebate sanctioning authority.


Quadruplicate : To the Chief Accounts Officer in the Commissionerate Headquarters


Quintuplicate : Office copy to be retained by the Central Excise Officer


Sixtuplicate : To be given to the exporter


Procedure for exports under Central Excise Seal

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 Superintendent of Central Excise having jurisdiction over the factory / warehouse atleast twenty four hours before the intended removal of the export goods from the factory / warehouse.


The Superintendent of Central Excise may depute an Inspector of Central Excise or may himself go for sealing and examination of the export consignment. Where the AR4 indicates that the export is in discharge of an export obligation under a Quantity-based Advance Licence or a Value-based Advance Licence issued under the Duty Exemption Scheme, in such cases the consignment is invariably examined and sealed by the Superintendent of Central Excise himself.


The Central Excise Officer examining the consignment would draw samples wherever necessary in triplicate. He would hand over two sets of samples, duly sealed, to the exporter or his authorized agent, for delivering to the Customs Officers at the point of export. He would retain the third set for his records.


The export consignment is carefully examined vis-a-vis the description of goods, their value and other particulars / declarations on the AR4. The Central Excise Officer verifies the facts of payment of duty and other certificates / declarations made by the exporter. After he is satisfied that the information contained in the AR4 is true he would allow the clearances and also sign all the six copies of the AR4 at appropriate places and put his stamp with his name and designation below his signature.


The copies of AR4 are disposed of as under.


Original & Duplicate : To the exporter for presenting to Customs Officer at the point of export along with the export consignment. Triplicate : To the rebate sanctioning authority i.e. Maritime Commissioner of Central Excise or the jurisdictional Assistant Commissioner of Central Excise, as declared by the exporter on the AR4. The Central Excise Officer may handover this copy under a sealed cover on exporter's request.


Quadruplicate : To the Chief Accounts Officer at his Commissionerate Headquarters


Quintuplicate : To be retained for records


Export under Bond Procedure

Under the second procedure known as Exports Under Bond goods can be exported except to Nepal or Bhutan without prior payment of duty subject to the execution of the Bond with security / security for a sum equivalent to the duty chargeable on the goods to be exported. This is done under Rule 13 of Central Excise Rules which deals with export of goods in Bond as well as utilisation of raw materials etc. without payment of duty for manufacture and export of excisable goods. The following procedure has been prescribed in this regard.


Removal of goods without payment of Central Excise duty from a factory or warehouse without examination by the Central Excise Officers :


The exporters are allowed to remove the goods for export on their own without getting the goods examined by the Central Excise Officers in respect of all commodities other than those covered under physical control. The AR4 in such cases should be prepared in sixtuplicate, giving all particulars and declarations. The exporter shall deliver triplicate, quadruplicate, quintuplicate and sixtuplicate copies of AR4, to the Superintendent of Central Excise having jurisdiction over the factory or the warehouse, within twenty four hours of the removal of the consignment and would retain the original and duplicate copies for presenting alongwith the consignment to the Customs Officer at the point of export. However, the exporters may ensure before clearances that the necessary bond has been executed for this purpose.


Exporters, whether manufacturer exporter or merchant exporter, may be cautioned that unless they execute the necessary bond before the Competent Authority they should not clear the goods under the relaxed procedure. They should without fail indicate the Bond Number and the authority before whom the relevant bond is executed in the relevant columns provided in Form AR4.


The jurisdictional Superintendent of Central Excise examines the information contained in AR4 and verifies the fact of execution of bond and other certificates / declarations made by the exporter. After he is satisfied that the information contained in the AR4 is true, he will sign at appropriate places in the four copies of AR4 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 AR4 as under.


Triplicate : To the authority before whom the bond is executed and who will accept the proof of export i.e. Maritime Commissioner of Central Excise or the Assistant Commissioner of Central Excise declared by the exporter on the AR4. This copy on-the request of exporter may be sealed and handed over to the exporter / his .authorized agent for presenting to the authority.


Quadruplicate : To the Chief Accounts Officer in the Commissionerate Headquarters


Quintuplicate : Office copy to be retained by the Central Excise Officer


Sixtuplicate : To be given to the exporter or his authorized agent in the sealed cover


Procedure for exports under Central Excise seal

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 Superintendent of Central Excise having jurisdiction over the factory / warehouse at least twenty four hours before the intended removal of the export goods from the factory / warehouse.


The Superintendent of Central Excise may depute an inspector of Central Excise or may himself go for sealing and examination of the export consignment. Where the AR4 indicates that the export is in discharge of an export obligation under a Quantity-based Advance Licence or a value based Advance Licence issued under the Duty Exemption Scheme. In such cases the consignment is invariably examined and sealed by the Superintendent of Central Excise himself.


The Central Excise Officer examining the consignment would draw samples wherever necessary in triplicate. He would hand over two sets of samples, duly sealed to the exporter or his authorized agent, for delivering to the Customs Officer at the point of export. He would retain the third set for his records.


The export consignment is carefully examined vis-a-vis the description of goods, their value and other particulars / declarations on the AR4. The Central Excise Officer shall verify the facts, certificates / declaration made by the exporter. The value declared on AR4 should be as per Section 4 of Central Excises Act. After Central Excise Officer is satisfied that the information contained in the AR4 is true and after verifying that necessary bond has been executed by the exporter, he would allow the clearances and also sign all the six copies of the AR4 at appropriate places and put his stamp with his name and designation below his signature.


The copies of AR4 would be disposed of as under.


Original & Duplicate : To the exporter for presenting to Customs Officers at the point of export along with the export consignment


Triplicate : To the authority competent to accept the proof of exports i.e. Maritime Commissioner of Central Excise or the jurisdictional Assistant Commissioner of Central Excise, as declared by the exporter on the AR4….. The Central Excise Officer may handover this copy under a sealed cover on exporter's request.


Quadruplicate : To the Chief Accounts Officer at his Commissionerate Headquarters


Quintuplicate : To be retained for records


Sixtuplicate : To be given to the exporter or his authorized agent, in a sealed cover, for handling over to Customs Officer…. After shipment proof of export i.e. documents like bill of lading, shipping bill are submitted to the Maritime Collector of Central Excise who after verification credit the running bond account and the excise duty liability is discharged.


Simplified Export Procedure for Exempted Units :

Manufacturers having value of clearances for consumption within exemption limit and who are availing full exemptions can avail simplified export procedure.





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