Excise Duty Not Paid Export-merchant Exporter

Excise Duty And Merchant Exporter
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  Part-IIExport to all countries except Nepal and Bhutan1. Introduction 1.1 Procedures and conditions for export to all countries except Nepal and Bhutan are specified in notification No. 42/2001-CE(N.T. dated 2!.!.2001. The details are entioned in this part. 2. Conditions   2.1 #n exporter shall furnish $ond in %or B-1 and o$tain certificate in %or CT-1. # anufacturer-exporter a& furnish annual 'etter of nderta)in* (no CT-1 is re+uired in this case. The export shall $e su$,ect to the folloin* conditions(iThe *oods shall $e exported ithin six onths fro the date on hich these ere cleared for export fro the factor& of the production or the anufacture or arehouse or other approed pre ises ithin such extended period as the eput&/#ssistant Co issioner of Central Excise or ariti e Co issioner a& in an& particular case allo(ii3hen the export is fro a place other than re*istered factor& or arehouse the excisa$le *oods are in ori*inal pac)ed condition and identifia$le as to their ori*in(iiiThe exports of ineral oil products fallin* under Chapter 25 of the %irst 6chedule to the Central Excise Tariff #ct 1789 (9 of 178! as stores for consu ption on $oard of an aircraft on forei*n run shall $e su$,ect to conditions and li itations to $e applied utatis utandis as notified in the Notification No.40/2001-Central Excise (N.T. dated 2!th :une 2001 issued under rule 18 of the said ;ules. 3. Forms to be used <.1 #;E.1 is the export docu ent for export clearance ( #nnexure-14 hich shall $e prepared in +uintuplicate (9 copies. This is si ilar to the ersthile #;.4. This docu ent shall $ear runnin* serial nu $er $e*innin* fro the first da& of the financial &ear. urin* this &ear for the sa)e of continuit& the serial nu $er as started fro 1.4.2001 a& continue. The stationar& for #;.4 %or a& $e used ith odified na e #;E.1 durin* this financial &ear. =n #.;.E.1 certain declarations are re+uired to $e *ien $& the exporter. These should $e si*ned $& the exporter or his authorised a*ent. The different copies of #;E.1 for s should $e of different colours indicated $elo>=ri*inal3hiteuplicateBuff TriplicatePin)  ?uadruplicate@reen?uintuplicateBlue<.2 At ill $e sufficient if the copies of #;E.1 contain a color $and on the top or ri*ht hand corner in accordance ith a$oe color sche e.<.2 #n inoice shall also $e prepared in ter s of rule 11 of the said ;ules. At should $e pro inentl& entioned on top %=; EP=;T 3AT=T P#DENT =% TD.<.< The 'etter of nderta)in* is to $e furnished in the %or T-1 specified in  #nnexure-19 toNotification No. 42/2001-Central Excise (N.T. supra. #n& anufacturer ho is an assessee for the purposes of the Central Excise (No.2 ;ules 2001 shall furnish a 'etter of nderta)in* onl& to the eput&/#ssistant Co issioner of Central Excise hain* ,urisdiction oer his factor& fro hich he intends to export. The 'etter of nderta)in* should not $e furnished to the ariti e Co issioner or an& other officer authorised $& the Board. # 'etter of nderta)in*F shall $e alidfor tele calendar onths proided the exporter co plies ith the conditions of the 'etter of nderta)in* especiall& the procedure for acceptance of proof of exportF under this instruction. An case of persistent defaults or non-co pliance causin* threat to reenue the anufacturer-exporter a& $e as)ed to furnish $ond ith securit&/suret&. %or the sa)e of clarification it is entioned that this 'etter of nderta)in* should not $e ta)en for each consi*n ent of export.<.4 The o$li*ation of the anufacturer flos fro statutor& re+uire ent of exportin* the *oods ithin six onths or such extended period as the eput&/#ssistant Co issioner of Central Excise a& allo. %ailin* this the exporter is re+uired to deposit the re+uisite su (dut& and interest suo moto, considerin* that the anufacturer has to do self-assess entF. #n& non-pa& ent ithin 19 da&s of expir& of the stipulated ti e period shall $e treated as arrears of reenue and the epart ent ill proceed to recoer the sa e as su due to @oern entF. Suo moto  pa& ent ithin 19 da&s of expir& of the stipulated ti e period ill not $e treated as defaultF.<.9 =n repeated failure of the anufacturer-exporter to co pl& ith the conditions of the 'etter of nderta)in* or the procedure for acceptance of proof of exportF under this instruction the eput&/#ssistant Co issioner of Central Excise a& direct hi in ritin* that the letter of underta)in* is not alid and he should furnish B-1 Bond ith sufficient securit&/suret&.<.! The 'etter of nderta)in* shall not $e dischar*ed unless the *oods are dul& exported to the satisfaction of the #ssistant Co issioner of Central Excise or the eput& Co issioner of Central Excise ithin the ti e alloed for such export or are otherise accounted for to the satisfaction of such officer or until the full dut& due upon an& deficienc& of *oods not accounted so and interest if an& has $een paid.<.5 Thou*h an& exporter (anufacturer-exporter or erchant-exporter can furnish $ond the erchant-exporters are necessaril& re+uired to furnish $ond in the B-1 %or specified in  #nnexure-1! of notification no. 42/2001-Central Excise (N.T. supra ith such securit& or suret& as a& $e specified $& the concerned $ond acceptin* authorit&. The $ond shall $e in a su e+ualat least to the dut& char*ea$le on the *oods for the due arrial of export *oods at the place of export and their export therefro under Custo s or as the case a& $e postal superision. The officer ho ill accept the $ond ill also $e responsi$le for dischar*in* that $ond upon furnishin*proof of export $& the exporter.  <.8 The $ond shall not $e dischar*ed unless the *oods are dul& exported to the satisfaction of the eput&/#ssistant Co issioner of Central Excise or ariti e Co issioner or such other officer as a& $e authorised $& the Board on this $ehalf ithin the ti e alloed for such export or are otherise accounted for to the satisfaction of such officer or until the full dut& due upon an& deficienc& of *oods not accounted so and interest if an& has $een paid<.7 Certificate CT-1 as specified in  #nnexure-15 hae to $e o$tained $& erchant- exporters for procurin* *oods fro a factor& or arehouse. 6uch certificates need not $e o$tained for each consi*n ent $ut ill $e *ien in lot of 29. 4. Bond cceptin! uthorit 4.1 Bond a& $e accepted $& an& of the folloin* officers> -(iThe eput&/#ssistant Co issioner of Central Excise hain* ,urisdiction oer the factor& or arehouse or an& other pre ises approed $& the Co issioner for storin* non-dut& paid *oods(iiariti e Co issioners at u $ai Chennai Gol)ata Paradeep Gandla Tuticorin Hisa)hapatna and Cochin.(iiiThe eput&/#ssistant Co issioner of Central Excise(Export as officers authorised $&the Board for this purpose.4.2 Exporters are re+uired to clearl& indicate on the #;E.1 the co plete postal address of the authorit& $efore ho the $ond is executed and to ho the docu ents are to $e su$ itted/trans itted for ad ission of proof of export. #. $ecurit or suret %ith bond 9.1 3hereer $ond is ta)en sufficient securit& or suret& is also re+uired as the per the notifications issued under rule 17 of the said ;ules. An 177! Board had ta)en a decision that in respect of exporters hain* *ood trac) record a& $e alloed to furnish $ond ith nil securit& or suret&. The Board in Circular No.284/118/7! dated <1.12.177! issued an instruction. No since the anufacturer-exporters ho are also assessee of the Central Excise epart ent hae an option to furnish 'etter of nderta)in* (ithout an& securit& or suret& the +uestion of furnishin* of securit& or suret&F is ainl& relate to erchant-exporters ho are not assessees of the Central Excise epart ent. An this scenario the Board has decided that securit& (Ban) @uarantee or Cash @uarantee or Cash 6ecurit& or suret& need not $e insisted upon fro 6uper 6tar Tradin* ouses 6tar Tradin* ouses Tradin* ouses and Export ouses proided that I(ithe exporter has not co e to aderse notice of the Central Excise or Custo s epart ent in last three &ears fro the date under consideration(iiall the for alities re+uired under Central Excise #ct and rules ade thereunder are re*ularl& co plied ith $& the exporter especiall& re*ardin* ti el& su$ ission of proof of export and deposit of dut& ith interest in ti e here proof of export is not receied ithin stipulated ti e fra e(iii# self-attested cop& of the proof of 6tatus (6uper 6tar Tradin* ouses 6tar Tradin* ouses Tradin* ouses and Export ouses fro concerned authorit& (inistr& of Co erce and Andustr& I irectorate @eneral of %orei*n Trade is su$ itted.  9.2 =ther exporters shall $e re+uired to furnish suret& e+ual to full $ond a ount or securit& e+ual to tent& fie percent. (29J of the $ond a ount alon* ith the $ond.9.< The $ond shall $e furnished on non-,udicial sta p paper of the alue as applica$le in the 6tate in hich $ond is $ein* furnished.9.4 3here export is effected $& erchant-exporter the $ond has to $e necessaril& furnished.At is open for the anufacturer to furnish $ond on $ehalf of the erchant-exporter. At is clarified that in such cases the anufacturer ill not ta)e a stand that since he is responsi$le for the dut& lia$ilit& the export should $e alloed on the $asis of the 'etter of nderta)in*F hich he has alread& furnished to the epart ent. An such circu stances the application in %or #;E.1 ill $e in the na e of the anufacturer ho executes the Bond. #ll other procedures for ad ission of the proof of export ould $e the sa e as in the case of anufacturer-exporters.9.9 At should $e noted that once a anufacturer furnished $ond for exports $& erchant exporters it ould $e his responsi$ilit& to account for the export *oods.9.! At a& $e noticed that onl& @eneral $ond (B-1 has $een specified. Een here $ond is re+uired for onl& one consi*n ent the %or ill re ain the sa e. The exporter a& *et the $ond redee ed i ediatel& after he co pletes the exports and o$tains the proof of export.9.5 An case of B-1 *eneral $ond a runnin* $ond account in profor a of  #nnexure-18 shall $e aintained $& the exporter $ecause he is responsi$le for de$it the $ond $efore preparation of certificateF for o$tainin* *oods for export. e shall also ta)e self-credit in the anner specified in this instruction.9.8 %or the sa)e of clarit& it is infor ed that the concept of Bloc) TransferF has lost its releance in the context of self-de$it and self-credit of $ond and the ne s&ste of acceptance of proof of export Kto $e explained in su$se+uent para*raphsL $& the exporter.9.7 At is further entioned that here the erchant exporter executes $ond it shall $e necessar& that $oth the erchant-exporter and the anufacturer si*n the #;E.1. &. Procedure 'or clearance 'rom the 'actor or %arehouse !.1 # anufacturer-exporter ho has furnished a 'etter of nderta)in* ill prepare the export docu ents (#.;.E.1 and inoice under rule 11 for clearance fro his factor& of production.!.2 # erchant-exporter ho has furnished a $ond shall $e proided sufficient nu $er of certificates (CT-1 dul& si*ned/certified in ultiples of 29 copies nor all& coerin* a period of one to three onths dependin* upon the trac) record of co pliance $& the exporter. The $ond acceptin* authorit&F shall $e responsi$le for erif&in* and acceptin* the proof of export and in case of an& defaults $& the exporter to recoer the su and enforcin* the $ond. The certificate should $e proided accordin* to the olu e of exports pro,ected $& the exporter (hich should also reflect in the a ount of $ond. The co pliance of the exporter in su$ ittin* the re+uisite docu ents toards proof of exportF shall $e another criterion.!.2.1 The second part of CT-1 is er& i portant. The exporter shall deter ine the description of *oods for procure ent fro a particular factor& or arehouse or an approed place of stora*e +uantu  alue of procure ent (proisional fi*ures and dut& inoled therein (proisional fi*ures I $ut $ased on correct rate of dut& and contracted transaction alue. This dut&F ele ent ill $e
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