Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Circular No. 961/04/2012-CX
New Delhi, the 26th March, 2012
To
All Chief Commissioners of Central Excise
All Chief Commissioners of Customs & Central Excise
All Chief Commissioners of LTU
Sir/Madam,
Sub: Revised Treaty of Trade between India and
Nepal.
As you are aware, Duty refund procedure (DRP) prescribed by
Notification No.
20/2004-CE(NT) dated 6.9.2004 has been rescinded vide
Notification No.
25/2011-CE(NT) dated 5.12.2011 w.e.f 1st March, 2012. Export to Nepal under
claim of rebate is permissible under
Notification No. 19/2004-CE(NT) dated
6.9.2004 as amended by
Notification No. 24/2011-CE(NT) dated 5.12.2011 issued
under rule 18 of Central Excise Rules, 2002 and under bond/LUT vide Notification
No. 42/2001-CE(NT) dated 26.6.2001 [as amended by Notification No.
26/2011-CE(NT) dated 5.12.2011] in terms of Rule 19 of Central Excise Rules,
2002.
- Clarifications have been sought as to whether in view of rescinding of
Notification No. 20/2004-CE(NT) dated 6.9.2004, goods cleared under DRP invoices
by Indian exporters from their factories etc. prior to 1st March, 2012 but yet
to be exported to Nepal within the time limit of six months prescribed in
Notification No. 20/2004-CE(NT) are to be treated as exports under DRP procedure
or as normal export in terms of Notification No. 19/2004-CE(NT) dated 6.9.2004
as amended. It is clarified that such exports shall be treated as exports under
the DRP procedure and duty refund will accordingly be credited to the Govt. of
Nepal as per the procedure laid down under the DRP. The rebate element will not
be admissible to Indian exporters in respect of such goods.
- Further, Board has also been requested to clarify whether exports under claim
of rebate under amended Notifications No. 19/2004-CE(NT)dated 6.9.2004 or under
bond in terms of amended Notification No. 42/2001-CE(NT) dated 26.6.2001 are to
be permitted even when the export proceeds are paid in Indian Rupees. It is
clarified that neither Rule 18 or Rule 19 of Central Excise Rules, 2002, nor the
above mentioned notifications make any distinction on the basis of mode of
payment of currency for exports. It is therefore clarified that exports to Nepal
will continue to be permissible irrespective of whether the payments are made in
Indian currency or foreign convertible currency as long as they are in
accordance with applicable RBI guidelines.
- Difficulties, if any, faced in this regard may be brought to the notice of
Board immediately.
- Field formations and Trade may also be suitably informed.
- Hindi version will follow.
V.P. Singh
Under Secretary(CX-6)
F.No.201/03/2010-CX.6