p 8 ch 6 export procedures

8/13/2019 p 8 Ch 6 Export Procedures

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CA Final Paper 8 Indirect Tax Laws Chapter 6

Dr. Nilesh V. Suchak


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Export Promotion is a Major Priority in Current Scenario

Various Benefits available to the Exporters

Export of Goods without payment of duty - Rule 19

Procurement of material for use in manufacture of processing of export goods Rule 19

Export of Goods on payment of duty and claim of rebate or Rebate of duty paidon materials used in the manufacture or processing of such goods Rule 18

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Any excisable goods may be

Exported without payment of duty

May be removed without payment of duty for usein the manufacture or processing of goods whichare exported

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From a factory of the producer or the manufacturer

or the warehouse or any other premises, as may

be approved by the Commissioner


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Export to countries other than Bhutan by aMerchant Exporter

B-1 Bond or UT-1 CT-1 Certificate

Export Goods within 6 months or such extendedperiod as AC/DC may allow

Running Bond Account Sealing

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Export to countries other than Bhutan by aMerchant Exporter Cont.

Export Invoice and Certification:

Procedure at Place of Export:

Disposal of ARE 1 Copies:

Proof of Export

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Bond B1 should be for an amount equal

to the duty chargeable on the goods to

be exported. The security is normally

25% of the bond amount and the suretyis for the full bond value

CT-1 certificate is obtained from the

jurisdictional superintendent of Central

Excise for the purpose of procuring

excisable goods without payment of

duty.

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Export to Countries other than Bhutan by a Merchant Exporter

Submission of Bond B1

by the Exporter to

ACCE/DCCE

To obtain CT-1

Certificate and send it

to the supplier

manufacturer.

To maintain running

Bond Register

Sealing Procedure

Export Invoice and

Certification

Procedure at Place ofExport

Disposal of ARE 1

Copies

Proof of Export


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Export to countries other than Bhutan by aManufacturer Exporter

Submission of Letter of Undertaking

Sealing of Goods

Export Invoice and ARE 1

Certification

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Export to countries other than Bhutan by aManufacturer Exporter Cont.

Distribution of ARE 1

Procedure at Place of export

Disposal of ARE 1

Proof of Export

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The Excise Invoice shall mention

FOR EXPORT WITHOUT PAYMENT

OF DUTY.

Letter of Undertaking in form UT-1 to be

submitted to ACCE/DCCE. The LUT is

normally valid for a period of twelve

calendar months.

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Export to Countries other than Bhutan by a Manufacturer Exporter

Submission of Letter of

Undertaking in form UT-1

to ACCE/DCCE

Sealing of Goods

Export Invoice and ARE 1

Certification

Distribution of ARE 1

Procedure at Place of

export

Disposal of ARE 1

Proof of Export


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Cancellation of export documents

Goods not exported for any reason

Request in writing for cancellation of application

Duty to be paid alongwith interest

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Cancellation of export documents Contd.

Credit in running bond account, facts recorded in

daily stock account.

Changes in destination, buyer or port to be reported

to the bond accepting authority in writing.

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Cancellation of export documents Contd.

Cancellation of original documents and issue of fresh

ones to be done under permission and authentication

by bond accepting authority.

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Re-entry of goods cleared for export under bondbut not actually exported, in the factory ofmanufacturer.

The excisable goods not exported may be returned to

the same factory under following conditions

Goods are returned within 6 months along with theoriginal documents.

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Re-entry of goods cleared for export under bondbut not actually exported, in the factory ofmanufacturer. Contd.

Intimation of re-entry of each consignment in form D-

3 within 24 hours of re-entry

Goods to be stored separately for at least 48 hoursfrom the time of intimation

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Re-entry of goods cleared for export under bondbut not actually exported, in the factory ofmanufacturer. Contd.

Details to be recorded in the daily stock account and

taken in the stock in the factory.

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Re-import of exported goods for repairs etc. andsubsequent re-export

Goods re-imported for carrying out repairs etc. to be

returned to the factory of manufacture

Re-import and re-export shall be governed by the

provision of the Customs Act, 1962.

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Re-import of exported goods for repairs etc. andsubsequent re-export Contd.

The manufacturer shall maintain separate account for

return of such goods in a daily stock account.

When goods are exported, the usual export

procedure shall be followed.

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Re-import of exported goods for repairs etc. andsubsequent re-export Contd.

Any waste as a result of process shall be removed

from the factory on payment of appropriate duty or to

be destroyed after informing the officer in writing.

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Entry of goods in another factory of the samemanufacturer for consolidation and loading ofconsignment for export

Goods removed for export from one factory allowed

to enter another factory only for the purpose of

consolidation and loading of goods.

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Entry of goods in another factory of the samemanufacturer for consolidation and loading ofconsignment for export

Only under following conditions can it be done

Goods shall be examined and sealed at each

factory by a Central Excise Officer.

The Exporter shall have to pay the supervision

charges

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The Central Government can grant rebate of the dutypaid

On any goods that are Exported - Notification No.19/2004-CE(NT), dated 6-9-04

On materials used in the manufacture orprocessing of such goods that are exported.-Notification No. 21/2004-CE(NT), dated 6-9-04

- NotificationNo. 19/2004-

CE(NT), dated6-9-04

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The rebate is available on materials and not on

capital goods used in the manufacturing/process.


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Conditions to be satisfied for availing rebate ofduty paid on Excisable goods.

Goods shall be exported directly from factory orwarehouse except if permitted otherwise

Goods shall be exported within 6 months from thedate of clearance from factory or warehouse unless

the Commissioner of Central Excise extends theperiod for reasons that are recorded in writing.

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Conditions to be satisfied for availing rebate ofduty paid on Excisable goods. Contd.

The quantity of goods supplied as ships stores forconsumption on board as may be considered

reasonable by the commissioner of customs at the

port of shipment

Market price of goods at the time of export is not less

than the rebate of duty claimed.

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Conditions to be satisfied for availing rebate ofduty paid on Excisable goods. Contd.

The amount of Rebate claimed is not less than Rs.

500/-

The Rebate of duty paid on goods prohibited for

export shall not be made.

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Forms to be Used (ARE-1 and ARE-2)

Procedure for clearance for export

Sealing of goods and examination at place ofdespatch

Distribution of Documents (ARE-1 and ARE-2)

Further Procedure for Export under claim forRebate


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Despatch of goods by self-sealing and self-certification

Examination of goods at the place of export

Rebate availability

Sanction of claim for rebate

Further Procedure for Export under claim forRebate Contd.


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Export by Parcel Post

Procedure for payment of rebate of duty paid on

excisable goods used in goods exported to any

country except Bhutan Notification No. 21/2004-CE

(NT), dated 6-9-2004

Further Procedure for Export under claim forRebate Contd.


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MCQ's

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Which form is used by a merchant exporter toprocure goods for export from manufacturer

without payment of Excise Duty?

(a) ARE-1

(b) CT-1

(c) B-1

(d) None of the above

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Answer (b) Form CT-1 is sent to the

supplier manufacturer so as to let

the supplier manufacturer clear the

goods without payment of Excise

Duty.


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In which form should a merchant exporterexecute Bond to be able to procure goodsfor export without payment of Excise Duty?

(a) ARE-1

(b) CT-1

(c) B-1


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Answer (c) Form B-1 which is

General Bond.


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In which of the following cases can anexporter notclaim rebate of duty paid?

(a) Duty paid on CapitalGoods

(b) Duty paid on Rawmaterials

(c) Duty paid on goodsprohibited for export

(d) (a) & (c)

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Answer (d) Rebate

cannot be claimed on

Capital goods and on

goods which are

prohibited for Export.


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Of the following forms, which form is used by amanufacturer for letter of undertaking to be

able to export goods without payment of duty?

(a) UT-1

(b) CT-1

(c) Both (a) & (b)


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Answer (a) Form UT-

1 is used by a

manufacturer

exporter to submit

Letter ofUndertaking.


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The market price of x goods is Rs. 10000 at the time ofmanufacture, the excise duty paid on the same is Rs. 1000. Now

at the time of export, if the price of the goods falls to__________, the exporter cannot avail rebate of duty paid. What

can that price be?

(a) Rs. 5000

(b) Rs. 2599

(c) Rs. 1000

(d) Rs. 999

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Answer (d) To Claim

Rebate of duty paid,

the market value of

goods at the time of

export should notbe less thanthe

amount of rebate to

be claimed.


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Under which of the followingcircumstances, rebate on inputs is not

available?

(a) When Finished goods aresold in the domestic market

(b) When Finished Goods areExported

(c) When inputs are used formanufacture of export goods

(d) (a) & (c)

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Answer (a) Of the

given options, rebate

on inputs is not

available only if the

goods are sold in thedomestic market.

Iinstead, its CENVAT

can be availed.


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If goods cleared for export are returned back tofactory, it should usually be stored separately for a

minimum of ______ from the time intimation isfurnished to range officer.

(a) 48 Hours

(b) 72 Hours

(c) 3 Days

(d) 6 Months

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Answer (a) Goods

are to be stored

separately for atleast 48 hours


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