Simplified Export Procedure for Exempted Units, home consumption, may be exempted from filing ARE-1.
Filing of declaration
Proof of Export
SIMPLIFIED EXPORT PROCEDURE FOR EXEMPTED UNITS
1.1 Units, which are fully exempted from payment of duty by a notification
granting exemption based on value of clearances for home consumption, may be
exempted from filing ARE.1 and Bond till they remain within the full
exemption limit. The following simplified export procedure shall be followed
in this regard by such units: -
- Filing of declaration
2.1 Manufacturers exempted for payment of duty will not be required
to take Central Excise Registration. They shall however, file a declaration
in terms of Para 2 of Notification No. 36/2001-CE (NT) dated 26.6.2001, and
obtain declarant code number [notwithstanding they are exempted form
declaration, but for this procedure].
3.1 The clearance document will be, as follows:
- Such manufacturers are permitted to use invoices or other similar
documents bearing printed Serial Numbers beginning from 1st day of a
financial year for the purpose of clearances for home consumption as
well as for exports. (The printing of Serial Numbers can be done by use
of franking machine). The invoices meant for use during a month shall be
pre-authenticated by the owner or partner or Director/Managing Director
of a Company or other authorised person.
- The declarant's Code Number should be mentioned on all clearance
- Such clearance document should contain particulars of the
description of goods, name and address of the buyer, destination, value,
[progressive total of total value of excisable goods cleared for home
consumption since beginning of the financial year], vehicle number, date
and time of the removal of the goods.
- The clearance document will be signed by the manufacturer or his
authorised agent at the time of clearance.
- In case of export through merchant exporters, the manufacturer will
also mention on the top "EXPORT THROUGH MERCHANT EXPORTERS" and will
mention the Export-Import Code No. of such merchant exporters.
- In case of direct export by the manufacturer-exporters, he will
mention on the top "FOR EXPORT" and his own Export - Import Code No., if
3.2.1 Such units shall maintain a simple record of quantity and value of
production and clearance. Entries in production record should either be
allowed to be made at the close of the day or before the commencement of
the production on the following day. Entries need not be made on days
when there is no production or clearance of goods.
3.3.1 Such units shall file a prescribed quarterly statement to the
Jurisdictional Range Superintendent containing various particulars.
- Proof of Export
4.1 Following documents shall be accepted as proof of export :
4.1.1 In the case of direct export by the Manufacture- exporter
4.1.2 In the case of export through Merchant-exporter the document
prescribed by Sales Tax Department will be accepted as the proof of
export. Sales made by manufacturer of the goods' to the merchant
exporter which ultimately are exported are exempt from Central Sales
Tax. The Sales Tax Department issues booklet to the merchant exporters
containing serially numbered H-Forms/ST-XXII form or equivalent Sales
Tax form. After the goods have been exported by the merchant exporters,
the latter issues these forms to the manufacturers of the goods. The
merchant exporters in turn have to account all these serially numbered
forms to the sales Tax Department by furnishing a proof that the goods
have been exported out. These proofs are in the from of presentation of
the Shipping Bill duly completed by the customs, bill of landing,
foreign exchange remittance certificates etc. The liability of the
manufacturers to the Central Sales Tax gets discharged only when they
submit these forms to the Sales Tax Department. It is, therefore, seen
that indirectly exports get accounted for through the issue of H-form or
ST-XXII Form. Thus, photocopy of H-form or ST-XXII Form or any other
equivalent Sales Tax form duly attested and stamped by the manufacturer
or his authorised agent will be accepted for purpose of proof of export.
- Duly attested photocopy of shipping bill (Export Promotion Copy)
bearing the particulars and date of clearance document under which the
goods are cleared from the factory of production, having endorsement on
its reverse by the Customs of the particulars of mate's receipt no.
(wherever applicable), name of the ship/ flight no., of the aircraft,
vehicle no. - by which the goods were exported out, date of export, and
EGM Number/ Airway Bill Number (wherever applicable);
- Duly Custom's attested copy of Bill of lading; and
- Foreign Exchange Remittance Certificates.
4.2 Submission of proof of export and processing thereof
4.2.1 The proof of export should be submitted to the Range Officer
within a period of 6 months from the date of clearance of goods from the
factory of production.
4.2.2 If Range Superintendent finds that the clearances for home
consumption, and the clearances for export where proof of exports have
not been furnished within 6 months, when taken together, are likely to
exceed the exemption limit (which is presently Rs. 100 lakhs for home
consumption), he should issue show cause notices for safeguarding
revenue. These show cause notices, however, should be kept pending for
another three months by which time proof of exports are expected to be
4.2.3 The Range Superintendent will maintain manufacturer wise record on
the basis of the quarterly return and the proof of exports submitted by
the manufacturer from time to time in order to ascertain that the
clearances for exports and the proofs of exports are duly accounted for
and in case of failure on the part of exporter to submit proof of
export, necessary action can be initiated promptly on the lines already
mentioned in the above para.
4.3 In case clearances of such manufacturers for home consumption plus
clearance for export where proof of export were not furnished within 6
months, exceed the exemption limit, they should take Central Excise
Registration and follow the regular A.R.E.1 procedure.
4.4 This procedure will also be applicable to exports of ready-made