Export without payment of duty [Rule 19] :

(1) Any excisable goods may be exported without payment of duty from a factory of the producer or the manufacturer or the warehouse or any other premises, as may be approved by the Commissioner.

(2) Any material may be removed without payment of duty from a factory of the producer or the manufacturer or the warehouse or any other premises, for use in the manufacture or processing of goods which are exported, as may be approved by the Commissioner.

(3) The export under sub-rule (1) or sub-rule (2) shall be subject to such conditions, safeguards and procedure as may be specified by notification by the Board.

Rule 19 of Central Excise Rules 2002 governing export under bond/Letter of Undertaking states that any excisable goods may be cleared for export without payment of duty from eith er the factory of manufacture or warehouse or any other premises approved by the Commissioner of Central Excise. Materials can also be cleared for use in the manufacture or processing of goods which would be exported.

Export without payment of duty under Bond/Letter of Undertaking: Export without payment of duty is further classified into the export to the countries other than Bhutan for which there is a different procedure. Exports to Bhutan is subject to more stringent safeguards which have been notified separately and would also be subject to restrictions in terms of remittance.