Export of excisable goods to all countries except Bhutan :

1. Conditions relating to the said export are as follows:

(a) The excisable goods shall be exported after payment of duty, directly from a factory or warehouse. The condition of “payment of duty” is satisfied once the exporter records the details of removals in the Daily Stock Account maintained under Rule 10 of the said Rules, whereas the duty may be discharged in the manner specified under Rule 8 of the said Rules, i.e. on monthly basis.

(b) In certain cases, the Board may issue instructions/procedures for exporting the duty paid goods from a place other than the factory or the warehouse. In this regard, a general permission has been granted in respect of goods where it is possible to correlate the goods and their duty paid character.

(c) The excisable goods shall be exported within 6 months from the date on which they were cleared for export from the factory of manufacture or warehouse. This date wi ll be indicated on the ARE.1 and invoice issued for the purpose. However, the Commissioner of Central Excise has powers to extend this period, for reasons to be recorded in writing in any particular case. The exporter will be required to submit written request to the Commissioner specifying the reasons why they could not export within the stipulated 6 months‘ period. The Commissioner should give his decision within 7 working days of the receipt of the request. It should also be noted that such permissions should not given in a routine manner.

(d) The excisable goods supplied as ship‘s stores for consumption on board a vessel bound for any foreign port are in such quantities as the Commissioner of Customs at the port of shipment may consider reasonable.

(e) The rebate claim by filing electronic declaration shall be allowed from such place of export and such date, as may be specified by the Board in this behalf.

(f) The market price of the excisable goods at the time of exportation is not less than the amount of rebate of duty claimed.

(g) The amount of rebate of duty admissible is not less than `500.

(h) The rebate of duty paid on those excisable goods, export of which is prohibited under any law for the time being in force, shall not be made.

(i) The rebate shall not be admissible in case of export of goods which are manufactured by a manufacturer availing any of the following notifications:

(i) Notification No. 32/99- CE dated 08.07.1999 or

(ii) Notification No. 33/99- CE dated 08.07.1999 or

(iii) Notification No. 39/2001-CE dated 31.07.2001 or

(iv) Notification No. 56/2002-CE dated 14.11.2002 or

(v) Notification No. 57/2002-CE dated 14.11.2002 or

(vi) Notification No. 56/2003-CE dated 25.06.2003 or

(vii) Notification No. 71/2003-CE dated 09.09.2003 or

(viii) Notification No. 20/2007- CE dated 25.04.2007

It should be noted that the rebate of excise duty would be only equal to the excise duty paid on the goods [Siddhartha Tubes v. CCE 1999 (114) ELT 1000]

2. Forms to be used: ARE.1 is the export document which shall be prepared in quadruplicate. The assesee can optionally have quintuplicate copy (5th copy) which can be used for claiming other export incentives. This document shall bear running serial number beginning from the first day of the financial year. On A.R.E.1, certain declarations are required to be given by the exporter. They should be read carefully and signed by the exporter or his authorised agent. The different copies of ARE.1 forms should be of different colours indicated below:

Original-	White
Duplicate	Buff
Triplicate	Pink
Quadruplicate	Green
Quintuplicate	Blue

It will be sufficient if the copies of ARE.1 contain a color band on the top or right hand corner in accordance with above color scheme. An invoice shall also be prepared in terms of Rule 11 of the said Rules.

For filing rebate claim: There is no specified form for filing claim of rebate. The same may be done by the exporter on their letterhead and filed with the requisite documents.

3. Procedure for clearance for export: The exporter has two optional procedures regarding the manner in which he may clear the export consignments from the factory or warehouse, namely: –

(i) Examination and sealing of goods at the place of despatch by a Central Excise Officer.

(ii) Under self-sealing and self-certification

4. Sealing of goods and examination at place of despatch: The exporter is required to prepare five copies of application in the Form ARE-1, as per format specified in Annexure-I to Notification No. 19/2004-Central Excise (N.T.) dated 06.9.2004. The goods shall be assessed to duty in the same manner as the goods for home consumption. The classification and rate of duty should be in terms of Central Excise Tariff Act, 1985 read with any exemption notification and/or Central Excise Rules, 2002. The value shall be the “transaction value” and should conform to section 4 or section 4A, as the case may be, of the Central Excise Act, 1944. It is clarified that this value may be less than, equal to or more than the F.O.B. value indicat ed by the exporter on the Shipping Bill.

The duty payable shall be determined on the ARE.1 and invoice and recorded in the Daily Stock Account. It should be paid in the manner specified in Rule 8 of the said Rules.

The exporter may request the Superintendent or Inspector of Central Excise having jurisdiction over the factory of production or manufacture, warehouse or approved premises for examination and sealing at the place of despatch 24 hours in advance, or such shorter period as may be mutually agreed upon, about the intended time of removal so that arrangements can be made for necessary examination and sealing.

In case of exports under Duty Exemption Entitlement Certificate Scheme (DEEC), Duty Exemption Pass Book Scheme (DEPB) and claim for Drawback, the Superintendent of Central Excise shall also examine and seal the consignment and sign the documents in token of having done so. In exceptional cases, where the exporter has unblemished track record of compliance (Central Excise) and where there is non-availability of Superintendent of Central Excise due to leave, vacant post or other reasonable causes, the jurisdictional Deputy/Assistant Commissioner of Central Excise may permit examination and sealing by Inspector. Other types of export may be examined and sealed by the Inspector of Central Excise.

The Superintendent or Inspector of Central Excise, as the case may be, will verify the identity of goods mentioned in the application and the particulars of the duty paid or payable. If he finds that the declaration in ARE.1 and the invoices are correct from the point of view of identity of goods and its assessment to duty, and that the exporter has recorded the duty payable in Daily Stock Account, he shall seal each package or the container ensuring that thegoods cannot be tampered with after the examination. Normally, individual packages should be sealed by using wire and lead seals and an all -sides-closed container by using numbered One time Lock/Bottle seals or in such other manner as may be specified by the Commissioner of Central Excise by a special or general written order. Thereafter, the said officer shall endorse and sign each copy of the application in token of having such examination done and such examination report must accompany the export goods to the port/airport of export.

5. Distribution of documents (ARE.1)

Export from the factory or warehouse: In the case when export takes place from the factory of warehouse, the distribution of ARE.1 shall be, as follows:

Original (First Copy)	The said Superintendent or Inspector of Central Excise shall return to the exporter immediately after endorsements and signature
Duplicate (Second Copy)	The said Superintendent or Inspector of Central Excise shall return to the exporter immediately after endorsements and signature.
Triplicate (Third Copy)	Sent to the officer with whom rebate claim is to be filed, either by post or by handing over to the exporter in a tamper proof sealed cover after posting the particulars in official records.
Quadruplicate (Fourth Copy)	Retain for official records
Quintuplicate (Fifth Copy)	Optional copy – The said Superintendent or Inspector of Central Excise shall return to the exporter immediately after endorsements and signature.

Export from place other than factory or warehouse (including diversion of duty paid goods for export): Where goods are not exported directly from the factory of manufacture or warehouse, the distribution of A.R.E.1 will be same as above except that the triplicate copy of application shall be sent by the Superintendent having jurisdiction over the factory of manufacture or warehouse who shall, after verification forward the triplicate copy in the manner specified above.

6. Despatch of goods by self-sealing and self-certification: Self-sealing and selfcertification is a scheme where the exporter who is a manufacturer or owner of a warehouse, may remove the goods for export from his factory or warehouse without examination by a Central Excise Officer. This procedure will also be permitted in the cases where a merchantexporter procures the goods directly from a factory or warehouse. In both cases, the manufacturer of the export goods or owner of the warehouse shall take the responsibility of sealing and certification. For this purpose the owner, the working partner, the Managing Director or the Company Secretary, of the manufacturing unit of the goods or the owner of warehouse or a person (who should be permanent employee of the said manufacturer or owner of the warehouse holding reasonably high position) duly authorised by such owner, working partner or the Board of Directors of such company, as the case may be, shall certify on all the copies of the application (A.R.E. 1) that the goods have been sealed in his presence.

The exporter shall distribute the copies of A.R.E. 1 in the following manner:

Original (First copy) and Duplicate (Second copy)	Send to the place of export along with the goods
Triplicate (Third copy) and Quadruplicate (Fourth copy)	Superintendent or Inspector of Central Excise having jurisdiction over the factory or warehouse within twenty four hours of removal of the goods
Quintuplicate (Fifth copy)	Optional copy – Send to the place of export along with the goods

The said Superintendent and Inspector of Central Excise shall verify the particulars of assessment, the correctness of the amount of duty paid or duty payable, its entry in the Daily Stock Account maintained under Rule 10 of the said Rules (the manufacturer or warehouse owner will be required to present proof in this regard), corresponding invoice issued under Rule 11. If he is satisfied with the particulars, he will endorse the relevant A.R.E. 1 and append their signatures at specified places in token of having done the verification. In case of any discrepancy, he will take up the matter with the assessee for rectification and also inform the jurisdictional Deputy/Assistant Commissioner. Once verification is complete and the A.R.E. 1 is in order, he shall distribute the documents (A.R.E. 1) in the following manner:

Triplicate (Third copy)	Send to the officer with whom rebate claim is to be filed, either by post or by handing over to the exporter in a tamper proof sealed cover after posting the particulars in official records
Quadruplicate (Fourth copy)	Send to the officer with whom rebate claim is to be filed, either by post or by handing over to the exporter in a tamper proof sealed cover after posting the particulars in official records

7. Examination of goods at the place of export: The place of export may be a port, airport, Inland Container Depot, Customs Freight Station or Land Customs Station.

The exporter shall present together with original, duplicate and quintuplicate (optional) copies of the application (A.R.E. 1) to the Commissioner of Customs or other duly appointed officer – normally goods are presented in the designated export shed.

The goods are examined by the Customs for the purposes of Central Excise to establish the identity and quantity, i.e. the goods brought in the Customs area for export on an A.R.E. 1 a re the same which were cleared from the factory. The Customs authorities also examine the goods for Customs purposes such as verifying for certain export incentives such as drawback, DEEC, DEPB or for determining exportability of the goods.

For Central Excise purposes, the Officers of Customs at the place of export shall examine the consignments with the particulars as cited in the application (A.R.E. 1) and if he finds that the same are correct and the goods are exportable in accordance with the laws for the time being in force (for example, they are not prohibited or restricted from being exported), shall allow export thereof. Thereafter, he will certify on the copies of the A.R.E. 1 that the goods have been duly exported citing the shipping bill number and date and other particulars of export.

The officer of customs shall return the original and quintuplicate (optional copy for exporter) copies of application to the exporter and forward the duplicate copy of application either by post or by handing over to the exporter in a tamper proof sealed cover to the officer specified in the application, from whom exporter wants to claim rebate. However, where exporter claims rebate by electronic declaration on Electronic Data Inter-change system of Customs, the duplicate shall be sent to the Excise Rebate Audit Section at the place of export.

The exporter shall use the quintuplicate copy for the purposes of claiming any other export incentive.

The rebate can be claimed on inputs even if final goods are exempt from excise duty. Material shall include raw materials, components, intermediaries, assemblies, parts and packaging material. Rebate is not available on capital goods that are used for manufacturing or processing.

8. Rebate is available on excise duty under Central Excise Act 1944 (including National Calamity Contingent duty and Additional Duty under Section 3 of Customs Tariff Act equal to such duty of excise).

9. Sanction of claim for rebate by Central Excise: The rebate claim can be sanctioned by any of the following officers of Central Excise:-

(i) Deputy/Assistant Commissioner of Central Excise having jurisdiction over the factory of production of export goods or the warehouse; or

(ii) Maritime Commissioner.

It shall be essential for the exporter to indicate on the A.R.E. 1 at the time of removal of export goods the office and its complete address with which they intend to file claim of rebate.

The following documents shall be required for filing claim of rebate:

(i) A request on the letterhead of the exporter containing claim of rebate, A.R.E. 1 numbers and dates , corresponding invoice numbers and dates amount of rebate on each A.R.E. 1 and its calculations,

(ii) original copy of the A.R.E.1,

(iii) invoice issued under rule 11,

(iv) self attested copy of shipping Bill, and

(v) self attested copy of Bill of Lading.

(vi) Disclaimer Certificate (in case where claimant is other than exporter).

After satisfying himself that the goods cleared for export under the relevant A.R.E. 1 applications mentioned in the claim were actually exported, as evident by the original and duplicate copies of A.R.E.1 duly certified by Customs, and that the goods are of ‘duty –paid‘ character as certified on the triplicate copy of A.R.E. 1 received from the jurisdictional Superintendent of Central Excise (Range Office), the rebate sanctioning authority will sanction the rebate, in part or full. In case of any reduction or rejection of the claim, an opportunity shall be provided to the exporter to explain the case and a reasoned order shall be issued.

Where the individual rebate claim exceeds 5 lakh rupees, they shall be pre-audited before these are disbursed.

The procedure for export under rebate claim is as under:

(i) The goods must be removed under cover of invoice.

(ii) ARE1 is the prescribed form which is made in sets of five with different colors.(original – white, duplicate-buff, 3rd –pink, 4th-green, 5th-blue). Color bands can also be used at top or at right hand bottom.

(iii) The examination and sealing of goods can be done at place of dispatch. The examination can be done either by officer or exporter himself can remove goods under self -sealing and self certification method.

(iv) When goods are removed for the purpose of export they shall be assessed to duty as per the provisions of Central Excise Act 1944 and duty payable shall be specified in ARE-1 and in invoice.

(v) The officer shall satisfy himself that declaration is correct and make endorsements.

(vi) Where export is done from factory or warehouse ARE1 is disposed as follows: original, duplicate and fifth copy is given back to exporter after endorsing, third copy is sent to rebate sanctioning officer. The fourth copy is retained by the Superintendent for his records.

(vii) Where the examination is not done by officer exporter himself has to seal goods and certify that goods have been so sealed in presence of managing director, working partner or owner as case maybe. Further the exporter shall send the third copy to the superintendent within 24 hours. The superintendent shall send it to the rebate sanctioning authority.

(viii)The customs officer shall verify goods to see that the identity and quantity is correct and also verify the documents in terms of customs law requirements.

(ix) If everything is in order officer shall allow export and certify in the ARE1 that the goods are exported.

(x) The shipping bill number, date should also be mentioned in ARE1.

(xi) The customs officer shall return original and fifth copy to exporter and forward duplicate to rebate sanctioning authority. The duplicate could also be handed over to the exporter in a sealed cover.

(xii) An application for rebate must be made to rebate sanctioning authority which is Assistant or deputy Commissioner of Central Excise having jurisdiction over the factory or the Maritime Commissioner. The authority shall compare the original filed by the exporter with the duplicate from customs and triplicate from excise. If everything is in order he will sanction the claim of rebate.

(xiii)Rebate could be claimed on inputs that are used in final exported goods. The declaration has to be filed with Assistant Commissioner or Deputy Commissioner specifying finished goods, rate of duty, manufacturing formula, quantity and inputs used. The authorities could verify the authenticity of input-output ratio by calling for the samples of the material that is used. The same could be obtained under cover of invoice from manufacturer. ARE2 is the prescribed form and procedure to get rebate is same as that applicable to rebate on finished goods.

Note:—Where the rebate is claimed by EDI system, the duplicate copy of ARE 1 is sent to the Excise Rebate Audit Section at the place of export. The officer for rebate claim could ACCE/DCCE or Maritime Commissioner. The exporter can even opt for sealing by the excise authorities and in such a case the SCE shall do the examination of goods and sealing.

10. Export by parcel post: In case of export by parcel post, after the goods intended for export have been sealed, the exporter shall affix to the duplicate application sufficient postage stamps to cover postal charges and shall present the documents, together with the package or packages to which it refers, to the postmaster at the office of booking.

11. Filing of rebate claims by electronic declaration and sanction thereof through Electronic Data Inter-change (EDI): The new concept of filing of rebate claim and its sanction through EDI established by the Customs formations at different ports/airports/ICDs/CFSs has been incorporated in the new procedure. However, its implementation is dependent upon development of software and formats of electronic forms, administrative set-up at the places of exports for auditing such claims and putting in place the necessary hardware. The new process will also require to be tested. This may take some time. Accordingly, the provision has been made that this facility will be available at such places and from such time as may be specified by the Board. The exporter may enter the required information in shipping bill filed at such place of export as specified by the Board for claiming rebate by electronic declaration on electronic data interchange system of customs. The details would be entered in the electronic data interchange and rebate sanctioned or disbursed by the Assistant Commissioner or Deputy Commissioner of Customs.

For this purpose, the expression “electronic declaration” has been defined as the declaration of the particulars relating to the export goods, lodged in the Customs Computer System, through the data-entry facility provided at the Service Centre or the date communication networking facility provided by the Indian Customs and Central Excise Gateway (called ICEGATE), from the authorised person‘s computer.

It is important to note that rebate is available on all exports except exports to Bhutan.