Procedure of export warehousing, Goods supplied by an SSI Unit exempted from Registration, Clearance of goods for export outside India,
Introduction
Conditions of export warehousing
Procedure of export warehousing
Goods
supplied by an SSI Unit exempted from Registration
Clearance of goods for
export outside India
Diversion of goods for
home-consumption
Waiver of
physical warehousing in case of exigency
Providing of
accommodation for the Officer
Part-II
EXPORT WAREHOUSING
- Introduction
1.1 In pursuance of sub-rule (1) of rule 20 of the Central Excise (No.2)
Rules, 2001 (hereinafter referred to as the ‘said Rules’) the Board has
issued notification no. 46/2001-Central Excise (N.T.) dated 26th June, 2001
which has come into force on 1st July, 2001, whereby the warehousing
provisions have been extended to all excisable goods specified in the First
Schedule to the Central Excise Tariff Act, 1985 intended for storage in a
warehouse registered at such places as may be specified by the Board and
export therefrom.
1.2 In pursuance of the above-mentioned notification the Board has also
specified by Circular No. 581/18/2001-CX dated 29th June, 2001 the places
and class of persons to whom the provisions of the notification
No.46/2001-Central Excise (N.T.) dated 26th June, 2001 shall apply. In the
same Circular, the Board has specified the conditions (including interest),
limitations, safeguards and procedures.
1.3 The facility of export warehousing is available to the following
exporters and places, namely: -
- Exporters: The exporters who have been accorded status of Super Star
Trading House or Star Trading House, the foreign departmental stores of
repute and the automobiles manufacturers who have signed Memorandum of
Understanding with Directorate General of Foreign Trade in the Ministry
of Commerce and Industry.
- Places: The warehouses may be established and registered in
Ahmedabad, Bangalore, Kolkata, Chennai, Delhi, Hyderabad, Jaipur, Kanpur,
Ludhiana, District of Pune and Mumbai.
- Conditions of export warehousing
2.1 The exporter shall furnish a general Bond (B-3) under rule 19
of the said Rules read with notifications issued thereunder, backed by
twenty five per cent security of the bond amount.
2.2 Where any goods are diverted to home consumption from the warehouse,
interest shall be charged at the rate of twenty four per cent per annum on
the duty payable, calculated from the date of clearance from the factory of
production or any other premises approved by the Commissioner, till the date
of payment of duty and clearances; and
- Procedure of export warehousing
3.1 Registration
3.1.1 The exporter shall make a written request along with application for
registration under rule 9 to the Commissioner for being allowed to establish
a export warehouse under this provision. The Commissioner may cause an
enquiry to be made in respect of the security of the premise for warehouse
indicated by the exporter in the application. If found in order, the
Commissioner will accord his approval subject to such directions, terms and
manners as he may specify and forward the application to the jurisdictional
Superintendent of Central Excise through the jurisdictional Assistant
Commissioner of Central Excise or Deputy Commissioner of Central Excise
(having jurisdiction over the premise) within seven working days of the
receipt of the application.
3.1.2 The registration certificate containing registration number will be
issued by the jurisdictional Superintendent of Central Excise immediately on
receipt. Procedure relating to registration will be same as notified in
Notification No.36/2001-Central Excise (N.T.) dated 26.6.2001.
3.2 Execution of bond
3.2.1 Every exporter registered in the aforesaid manner, shall
execute before the Assistant Commissioner of Central Excise or the Deputy
Commissioner of Central Excise having jurisdiction over the warehouse a
general bond under Rule 19 of the said Rules for export of goods from the
warehouse in the B-3 Bond (General Security) Format at Annexure-26. The
exporter availing this scheme shall be required to furnish security equal to
25% of the bond amount. In case any bank guarantees are furnished, it shall
be the sole responsibility of the exporter to renew its validity from time
to time.
3.2.2 A 'Running Bond Account' will be opened in the format specified at
Annexure-27. This register shall be maintained by the exporter in the
warehouse and shall be made available to the officer-in -charge or officers
of Internal Audit for scrutiny and checking.
3.3 Removal of goods to warehouse
3.3.1 For removal of excisable goods from a factory or any other
premise approved by the Commissioner to a warehouse, procedure laid down in
Circular No. 579/16/2001-CX dated 26.6.2001 issued under rule 20 of the said
Rules will be applicable. It is clarified that the Notification No.
46/2001-CE(NT) dated 26.6.2001 do not cover removal from one warehouse to
another.
3.3.2 The Central Excise Officer in-charge of the warehouse will issue
certificate of removal in duplicate in the Form CT-2 specified at
Annexure-28 indicating details of the general bond executed by the exporter.
The CT-2 shall bear per-printed serial numbers running for the whole
financial year beginning on the 1st April of each year. The said officer
will issue twenty five CT-2 certificates at a time, signing each of the leaf
with the official stamp. More certificates can be issued if it is so
requested by the exporter on the grounds of large number of procurements.
The exporter will fill up the relevant information in CT-2. After making
provisional debit in the Running Bond Account, he will indicate the same in
the CT-2. One copy of CT-2 will be forwarded to Officer-in charge of the
warehouse. One copy will be sent to the consignor and one copy will remain
with the exporter.
3.3.3 The consignor will prepare an application for removal in the Form
specified in Annexure-IV (hereinafter referred to as ARE-3) and an invoice
(under rule 8 taking into account CT-2 certificate) and follow the procedure
specified in Circular No. 579/16/2001-CX dated 26.6.2001 issued under rule
20. The serial number of the corresponding CT-2 shall be mentioned on the
top of the each copy of ARE-3. Any nominal variations between the
provisional debit indicated in the CT-2 and the actual duty involved in the
goods removed as indicated in ARE-3, can be ignored. Immediately on receipt
of goods, the provisional debit shall be converted into actual debit on the
basis of the details mentioned in ARE-3.
3.3.4 The officer-in-charge of the warehouse will countersign application
and despatch to the Range Office having jurisdiction over the factory /
other approved premise of removal within one working day of receipt of the
application. He will make suitable entry in his own record accordingly.
3.3.5 The exporter [warehouse owner] shall maintain private record
(Warehousing Register) containing information relating to details of ARE-3
and invoice, date of warehousing certificate, description of goods received
including marks and numbers, quantity, value, amount of duty, details of
operation in the warehouse and new packages and their marks and number,
clearance from the warehouse for export (ARE-1 No., Invoice No., quantity,
value, duty) and clearance for home consumption. They shall produce this
Register to the Central Excise Officers in-charge of the warehouse whenever
required.
3.4 Receipt and storage of goods in warehouse
3.4.1 Receipt of goods will be governed by the procedure specified
Circular No. 579/16/2001-CX dated 26.6.2001 issued under rule 20.
3.4.2 Ten percent of the consignments, subject to minimum of two, received
in a month will be randomly selected, spread over the entire month, for
verification by officer-in-charge after the receipt of the written
intimation.
3.4.3 Goods brought under the cover of each ARE-3 shall be stored separately
or proper accountal shall be maintained, till these are exported or diverted
for home-consumption.
3.5 Packing, re-packing, labelling or re-labelling within the
warehouse
3.5.1 The operations of Packing, re-packing, labelling or re-labelling
in relation to excisable goods received and stored in the warehouse will be
governed by the procedure specified under rule 20. Suitable entries must be
made in the Export-Warehouse register. In case of non-reconciliation of
quantity, after adjusting any wastage or refuse, the differential quantity
shall be treated as unaccounted and action for recovery of duty will be
initiated.
3.5.2 The exporter may procure packing or labeling material and bring the
same into the warehouse under the warehousing procedure itself. No duty paid
goods will be permitted to be brought into the warehouse.
3.5.3 Where the process of packing, repacking, labelling or relabelling
amounts to manufacture in terms of the provisions of the Central Excise
Tariff Act, 1985, the goods permitted for clearance for home consumption
shall be assessed accordingly.
-
Goods supplied by an SSI Unit exempted from Registration
4.1 An SSI Unit exempted from registration under rule 9 of the said
rules will also prepare ARE-3 against CT-2 in the same manner as mentioned
in Para 5.3 above except that he will use his own invoice. Registration
under rule 9 shall not be insisted. The Warehousing Certificate forwarded to
the Range Office having jurisdiction over such SSI Unit shall be retained in
the office and will be tallied with the details submitted by the SSI Unit in
the quarterly statement. The procedure to be followed is based on Board's
Circular No. 212/46/96-CX dated 20th May, 1996, which continues to be
applicable under the said Rules. The clearances on those ARE-3 in respect of
which Warehousing Certificate is not received within ninety days of removal
or such extended period as the Commissioner may allow, will be treated as
clearances for home-consumption. If the Warehousing Certificate is
subsequently produced, the clearances, which were treated as "clearance for
home consumption" as aforesaid, shall be expunged.
- Clearance of goods for export outside India
5.1 For the export of goods from the warehouse, the procedure
relating to preparation of application for export (ARE.1), examination and
sealing, acceptance of proof of export etc. shall be governed by
Notification No. 42/2001-Central Excise (N.T.) dated 26.6.2001 and
instructions applicable for this notification.
5.2 The requisite copies of application will be filed with the Deputy
Commissioner or Assistant Commissioner having jurisdiction over the
warehouse and with whom the Bond was executed, for acceptance of proof of
export and issue of a certificate to this effect.
5.3 The credit in Running Bond Account shall be made by the exporter on the
basis of the application (ARE.1) duly endorsed by Customs at the place of
export evidencing that the goods have actually been exported. The exporter
will submit list of ARE.1 along with the date of export for the goods
exported in each month, within six months of the removal from the warehouse
and the original copies of the respective ARE.1 duly certified by Customs
authorities that the goods have actually been exported [containing Pass for
Shipment Order]. The exporter shall be liable to pay duty with interest
where such proof of export is not available with him within six months from
the date of removal from the warehouse.
5.4 The Superintendent in-charge of the warehouse is empowered to issue
certified attested copies of ARE.1 [more than one copies may be required by
exporter as one application (ARE.1) may consist of goods of several ARE-3s]
and hand over to the exporter for forwarding to the factory whose goods were
exported so that such factories can avail other export benefits, such as
refund of CENVAT credit accumulated on account of export in terms of the
CENVAT Credit Rules, 2001. This refund will be given only after goods
covered on an ARE-3 is entirely exported. In case of any diversion to
home-consumption, refund will be reduced on pro-rata basis. For the sake of
clarification, it is stated that the removal from the factory of production
to export warehouse on ARE-3 is ‘removal under bond for export’. Thus, the
manufacturer shall not be asked to reverse CENVAT Credit @ 8% of price of
the said goods.
5.5 On request from exporter, copies of proof of export may be sent
directly, by post to the Range Office having jurisdiction over the factory
or handed over to the exporter in sealed cover for delivery to such Range
Office.
5.6 Photocopies of the Shipping Bill/ Export Application and Bill of Lading
duly attested by the Superintendent in-charge of the Warehouse along with
certificate of proof of export should be accepted as valid documents for the
purposes of refund of accumulated credit under the CENVAT Credit Rules, 2001
on account of exports without payment of duty. The proof of export received
directly or in official sealed cover from the Superintendent in-charge of
the warehouse may be used to verify the authenticity.
5.7. Where neither the duplicate copy of ARE.1 nor the original copy of
ARE-1 duly attested at the port of export, are made available within the
time stipulated period of six months, it shall be presumed that export of
goods cleared from warehouse has not taken place. The demand shall be raised
by the Deputy/Assistant Commissioner having jurisdiction over the warehouse
for non-fulfilment of the conditions of bond executed by the exporter.
- Diversion of goods for home-consumption
6.1 Goods can be diverted for home-consumption from the warehouse
with the permission of the jurisdictional Deputy/Assistant Commissioner of
Central Excise. The clearance shall be effected on invoice prepared under
rule 8 on payment of duty, interest and any other charges on TR-6 Challans
and after making necessary entries in the export warehouse register
maintained by the exporter in the warehouse. Credit will be permitted in the
Running Bond Account equivalent to the duty involved in the goods so
diverted, which shall not exceed amount of duty debited on the basis of
ARE-3 on which such goods were received in the warehouse. If entire quantity
is not diverted, calculation shall be done on pro-rata basis.
6.2 Goods can be diverted for home-consumption even after the clearance from
the warehouse on ARE.1. For cancellation of documents, provisions of
Notification No. 46/2001-CE(NT) dated 26.6.2001 shall be followed. The
intimation shall be given to Deputy/Assistant Commissioner having
jurisdiction over the warehouse. Credit in Running Bond Account will be
permitted in the same manner as mentioned above.
6.3 Where the goods are diverted for home-consumption in full or in part the
exporter shall be liable to pay interest @24% per annum on the amount of
duty payable on such goods from the date of clearance from the factory of
production or any other premises approved, till the date of payment of duty
and clearance.
- Waiver of physical warehousing in case of exigency
7.1 The officer- in-charge of the warehouse may permit waiver from
physical warehousing (i.e. permitting export without physically storing the
goods in the warehouse) where exporter so requests in writing provided all
the formalities relating to record-keeping shall be completed in usual
manner with suitable record in the Warehousing Register: 'warehousing
waived'. This permission will be given in exceptional cases where delay
occurred due to delayed supply from the factory or longer transit-period or
requirement of immediate export or any other genuine reasons, provided the
entire consignment is entered for export in the original packing. Such cases
of permission granted will be reported to Superintendent-in-charge of the
warehouse at the earliest.
- Providing of accommodation for the Officer
8.1 The exporter shall provide adequate office accommodation and
furniture for the Officer deployed for examination and supervision, in the
warehouse. Where the exporter is willing to bear the cost of the posting of
Officers on "cost recovery basis", the Commissioner, depending upon the
administrative feasibility, may consider the deployment.