Clearance of goods for export outside India:
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.
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.
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.
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, 2004. 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 under rule 6 of CENVAT Credit Rules, 2004.
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.
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, 2004 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.
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.
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