EXPORT WITHOUT PAYMENT OF DUTY
1.1 The conditions and procedure relating to export without payment of duty
(i.e. duty under the Central Excise Act, 1944, the Additional Duties of
Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Additional
Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978); and
special excise duty collected under a Finance Act) are contained in
Notification Nos. 42/2001-Central Excise (N.T.) to 45/2001-Central Excise
(N.T.), all dated 26th June, 2001 issued under rule 19 of the Central Excise
(No.2) Rules, 2001 (hereinafter referred to as the said Rules). The new rule
19 corresponds to rule 13 of the Central Excise Rules, 1944.
1.2 Some important changes have been introduced under the present procedure,
which are mentioned below and explained in detail subsequently: -
- The concept of furnishing of a ‘Letter of Undertaking’ by a
manufacturer-exporter has been introduced. The clearances for export by
a manufacturer-exporter will be effected similar to clearances for home
consumption after he furnishes Letter of Undertaking.
- The merchant-exporters are required to file ‘bond’ in specified
format. A manufacturer-exporter may also file bond and follow the
‘bond-procedure’ specified in the notification.
- Under bond procedure, the concept of ‘self-debit’ by the exporter
has been introduced. The exporter need not go to the ‘bond-accepting
authority for a ‘debit-certificate’ before each removal.
- The procedure of ‘acceptance of proof of export’ has been
simplified. The concept of ‘ Self-credit" based on the copy of A.R.E.1
duly certified by Customs authorities at the place of export is being
- In each Commissionerate of Central Excise, there will be an officer
designated as ‘Deputy/Assistant Commissioner of Central Excise
(Exports)’ whose functions will be similar to the Maritime
- Number of copies of ‘application for Removal (A.R.E.1)’ has been
reduced compared to AR-4. This will be further reduced after completion
of computer networking in the Department enabling ‘on-line verification’
- Categories of exports
2.1 There are two categories of export without payment of duty
- Export of finished goods without payment of duty under bond or
- Export of manufactured/processed goods after procuring raw material
without payment of duty under bond.