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Instructions regarding Central Excise - Simplified export procedure for
exempted units
Circular
No. 212
dated 20th May 1996
I
am directed to refer to the Board's Circular No. 160/71/95-CX dated 29th
November '95' issued from F.No. 209/31/95-CX.6, whereby it is provided that the
AR 4 procedure is required to be followed for export clearances even by a unit
whose value of clearances for home consumption was less than Rs. 30 lakhs in the
preceding financial year or during the current financial year.
2.
In this regard, representations from various Associations and Trade
Promotion Councils have been received indicating the difficulties being faced by
such small scale and the tiny units. They have stated that in order to follow
the AR4 procedure, such units have to get themselves registered with Central
Excise. Consequently they have to maintain all the statutory records and submit
returns. It has been reported that such units do not have sufficient
infrastructure and manpower to maintain statutory excise records and to prepare
export documents. A request has been made for the reintroduction of simplified
export procedure for such units which is laid down in the Board's Circular No.
12/90 dated 8.5.90.
3.
The issue has been examined by the Board.
4.
It has been decided that instead of AR4 procedure the following
simplified export procedure should be followed by manufacturers having value of
clearances for home consumption within exemption limit and who are availing full
exemption.
I.
General
Such
manufacturers will not be required to take Central Excise Registration. They
shall however, file a declaration in terms of Notification No. 13/92 (CE) (NT)
dated 14.5.92 as amended, to the Central Excise Department and obtain
declarant's code number.
II.
Documentation
i)
Such manufacturers are permitted to use their own printed delivery
challan/ bills/ invoices or other similar documents
bearing printed Serial Numbers 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).
ii)
The declarant Code Number should be mentioned on all clearance document.
In case a manufacturer does not possess the
declarant Code Number, he may indicate on the relevant invoice, the date
of filing of declaration.
iii)
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 approximate time of the removal
of the goods.
iv)
The clearance document will be pre-authenticated by the manufacturer or
his authorised agent.
v)
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.
vi)
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 any.
Such
units may be asked to maintain a simple record 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.
Such
units shall file a quarterly statement to the Jurisdictional Range
superintendent containing various particulars as mentioned in Annexure-A.
Proof
of Export
1.
Direct Export by the manufacture exporter: 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 mater's receipt no. its reverse by the Customs of the particulars of mater's
receipt no. (wherever applicable), name of the ship/ flight no. of the aircraft
- by which the goods were exported out, date of export, and EGM Number/ Airway
Bill Number (wherever applicable);
(ii)
Duly attested copy of Bill of lading; and
(iii)
Foreign Exchange Remittance Certificates.
2.
Export Through merchant Exporter: It has been decided to accept
the document prescribed by Sales Tax Department as the proof of export. Sales
made by manufacturer of the goods' to the merchant exporter, which ultimately
are to be exported out, are exempt from Central Sales Tax. The Sales Tax
Department issues booklet to the merchant exporters containing serially numbered
H-Forms/ St-XXII form. After the goods have been exported by the merchant
exporters, the latter issues these forms to the manufacturers of the goods from
whom the goods were purchased by them. 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 form 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 waved only where 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.
Therefore, it has been decided that to accept 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 should be submitted for the purpose of
proof of export.
(i)
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.
(ii)
It 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. 30 lakhs for home consumption), he should issue show
cause notices for safeguarding revenue. These show cause notices, however,
should be kept pending for six months by which time proof of exports are
expected to be received.
(iii)
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.
5.
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 AR-4/ AR-5 procedure.
6.
Circular No. 160/71/95-CX dated 29.11.95 issued from F.No. 209/31/95-CX.6
stands superseded and Circular No. 12/90 dated 8.5.90 stands modified to the
extent it is inconsistent with this Circular.
ANNEXURE-A
1.
Name and address of the manufacturing unit:
2.
Range, Division and Commissionerate:
3.
Code Number (Wherever allotted) by Central Excise Department:
4.
Financial Year:
5.
The period (quarter for which statement is submitted):
6.
Description, quantity and value of goods cleared for home consumption during the
quarter:
7.
Description quantity and value of goods cleared during the quarter:
i)
For direct export
ii)
For export through merchant exporter
8.
Progressive total of clearances for home consumption upto the quarter:
9.
Details of value of clearances for which proof of export not received within 6
months:
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