Procedure
for export by merchant exporters .
·
A merchant exporter can export
excisable goods either directly from the premises of the manufacturer, with or
without sealing of export consignment, or through his premises under claim for
rebate of duty or under bond.
·
In case of export under bond, the merchant
exporter is required to execute bond either with the jurisdictional Assistant
Commissioner having jurisdiction over the factory of the manufacturer or with
the Maritime Commissioner.
·
The merchant exporter can execute
consolidated B-1 general bond with the Maritime Commissioner and obtain
"Block Transfers" from him along with attested copies of B-1
consolidated bond executed for various ports or manufacturers and export the
goods under bond. The merchant exporter can also export goods on manufacturer’s
bond.
·
He can also claim rebate of duty paid
on exported goods either from the Assistant Commissioner of Central Excise
having jurisdiction over the factory of the manufacturer or from the Maritime
Commissioner.
·
The merchant exporter is also required
to take disclaimer certificate from the manufacturer as well, in case he wants
to avail the export benefits.
Special procedure to export to Nepal
Export
to Nepal is governed by special procedure provided in notifications issued
under Rule 12 & 13. The procedure is as explained below:-
Notification no. 47/94-CE(NT) dated 22.9.94 – payment of
rebate to His Majesty’s Government of Nepal.
Goods
for export to Nepal are to be cleared from the registered factory on Nepal
Invoice prepared in quadruplicate and marked ‘For Export to Nepal’ on payment
of duty.
The
Nepal Invoice is to be presented along with the goods to be exported before the
Central Excise officer.
The
Central excise officer shall verify the goods and seal the packages with the
Central Excise seal. After making necessary endorsement on the Nepal invoice to
this effect, he will hand over the original copy of the invoice to the
exporter. Duplicate and triplicate copies of the Nepal invoice after being put in
a sealed cover are handed over to the exporter for giving the same to the
Customs officer incharge of the Land Customs Station, mentioned on the invoice
and through which the goods are to be exported to Nepal.
On
arrival at the Land Customs Station, exported goods are to be presented to the
Customs officer along with the original copy of the Nepal invoice and sealed
cover containing duplicate and triplicate copy of invoice. The Customs officer
incharge, after verification of the goods with the invoice makes an endorsement
on all copies of the invoice. The original copy is handed over to the exporter
and the duplicate and triplicate copies are sent directly to the Nepalese
Customs Officer incharge of the check post through which the goods are to be
imported into Nepal.
The
Nepalese Customs officer will return the duplicate copy of the invoice after
endorsement regarding verification and allowing import into Nepal, to the
Customs officer incharge at Indian Land Customs Station who is to forward the
same to the Deputy Director of Inspection, Customs and Central Excise, Nepal
Wing, for grant of rebate to His Majesty’s Government of Nepal.
Notification no. 51/94-CE (NT) dated 22.9.94 as amended –
procedure for export to Nepal and Bhutan without payment of duty.
Export
under bond without payment of duty to Nepal and Bhutan is subject to the
following conditions
a. the
payment for goods shall be in freely convertible foreign currency; and
b. the
importer shall open an irrevokable letter of credit in favour of the exporter
in India before the export takes place, subject to certain conditions
prescribed in the notification.
The
exporter is required to execute a bond under Rule 13 before the Assistant
Commissioner of Central Excise having jurisdiction over the factory of the
manufacturer or any other place from where the goods are to be exported and is
required to furnish a certificate in Appendix 1 to the said notification from
the Reserve Bank of India or any other bank duly authorised to deal in foreign
exchange showing that full payment has been received.
On
receipt of the said certificate and on completion of the conditions of the
bond, the exporter shall be discharged of his liabilities under the bond.
Capital goods are permitted to be exported to Nepal against any global tender
invited by His Majesty’s Government of Nepal and the payment for which is
received in the Indian currency, without payment of duty, subject to the
condition that the exporter executes a bond and furnishes a certificate duly
signed by the concerned Bank of India that full payment has been received in
Indian currency by the said bank.
On
receipt of such certificate and on completion of the conditions of the bond,
the exporter is discharged of his liabilities under the bond.
The
exporter is required to follow the procedure as provided in Appendix 2 to the
said notification. The procedure is explained below
The
exporter is required to make 6 copies of the invoice as prescribed in
Annexure-A to the notification and make the following declaration on the same:
"
I/We declare that the goods entered herein are intended for export to
Nepal/Bhutan in bond, and shall not be diverted or delivered en route to any
other country".
The
exporter shall present all the 6 copies of the invoice duly filled in along
with the goods before the proper officer of Central Excise. The proper officer
after verification of the goods and sealing them would make an endorsement on
all the copies of the invoices.
The
original copy of the invoice is given to the exporter. Duplicate, triplicate
and quadruplicate copies under sealed cover are given to the exporter for
delivering the same to the Customs officer incharge of the Land Customs Station
through which the goods are to be exported. The quadruplicate copy is forwarded
to the Central Excise officer who has accepted the bond and quintuplicate copy
is retained by the proper officer.
On
arrival at the Land Customs Station, the goods are presented before the Customs
officer incharge along with original copy of the invoice and the sealed cover
containing copies of invoices.
The
Customs officer, after verification of the goods with the invoices would make
the endorsement on the invoice and hand over the original copy to the exporter.
The duplicate and triplicate copies are sent directly to the Nepalese or
Bhutanese, as the case may be, Custom officer incharge Land Customs Station
through which the goods are to be imported into Nepal or Bhutan.
The
Customs officer incharge of Land Customs Station at Nepal or Bhutan will return
the duplicate copy of the invoice, after making an endorsement thereon
regarding verification and allowing of import into Nepal or Bhutan, directly to
the Customs officer incharge Land Customs Station in India.
The
same is eventually forwarded to the Central Excise officer incharge of the
factory or warehouse from where the goods were removed for export.
Notifications:
1.
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
Notification No. 13/2011 - Customs (N.T.)
New Delhi, the 24th February, 2011
G.S.R. 108 (E). – In exercise of the powers conferred by sub-section (2) of section 76 of the Customs Act, 1962 (52 of 1962), the Central Government, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No.208/1977-Customs, dated the 1st October, 1977, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 1st October, 1977, namely:-
In the said notification, in paragraph 2, before the Explanation, the following proviso shall be inserted, namely,-
“Provided that no drawback shall be allowed if the goods exported were imported into India from third countries and exported to Nepal.”
F. No. 609/147/2010-DBK
(B. L. MEENA)
Under Secretary to the Government of India
Note. - The principal notification No. 208/77-Customs, dated the 1st October, 1977 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), dated the 1st October, 1977 and was last amended vide notification No. 24/2009-Customs (N.T.) dated the 03rd March, 2009 vide number G.S.R. 147(E), dated the 03rd March, 2009.
Restriction for exporting goods to Nepal
without duty payment as same are prone to be smuggled back into India.
( Para 20.4 is reproduced from Customs Manual 2011)
"20.4 Section 69 of the Customs
Act, 1962 provides that if the Central Government
is of opinion that warehoused goods of any specified description are
likely to be
smuggled back into India, it may, by notification in the Official
Gazette, direct that
such goods shall not be exported to any place outside India without
payment of duty
or may be allowed to be so exported subject to such restrictions and
conditions as
may be specified in the notification.
In exercise of powers under Section 69 of the Customs Act, 1962, the
following notifications have been issued:
(i) Notification No.45-Cus., dated 13-2-1963 provides that the
warehoused goods
shall not be exported to Bhutan, Nepal, Burma, Sikang, Tibet or
Sinkiang,However, the warehoused goods can be exported to Nepal under the
following circumstances:
(a) If goods are exported against an irrevocable letter of credit in
freely
convertible currency;
(b) If goods are exported for supplies to projects financed by any UN
Agency or IBRD Association or ADB or any other multilateral agency of
the like nature and for which payments are received in freely
convertible currency; and
(c) If the specified capital goods are supplied against any global
tender
invited by HMG of Nepal for which payment is received in Indian
Rupees. These goods can be exported only from Jogbani or Raxaul
LCS on production of bank certifies of receipt of the payment in freely
convertible currency or Indian Rupees, as the case may be."
"10. Export of container cargo from ICDs/CFSs to Bangladesh and Nepal
through LCSs:
10.1 Movement of export cargo from ICDs/CFSs to Nepal and Bangladesh
through
Land Customs Stations is as per the following procedure:
(a) The exporters are required to bring their goods meant for export to
ICD/CFS,
and to file six copies of Shipping Bills (including two transference
copies)
along with all necessary documents like GR Form, AR Form, certificates
issued by Export Promotion Councils, etc. The Shipping Bill is assessed
as
usual, the goods are to be examined and samples drawn, if required.
Inspection can be carried out by other agencies if applicable under
other
Allied Act(s). After the assessment of Shipping Bill, the original and
duplicate
copies of Shipping Bill along with two more copies (transference copies)
and
original GR Form are to be retained at the ICD. The original GR form is
to be
forwarded to the concerned branch of Reserve Bank of India.
(b) The examination order is to be given on duplicate and transference
copies of
the Shipping Bill. The examination report shall be recorded on all these
copies. The duplicate copy shall be retained in the ICD/CFS and both
transference copies shall be forwarded to the LCS through the carrier in
a
sealed cover along-with a copy of invoice, packing list and other
required
documents. After examination, the goods shall be stuffed in a container
and
the container shall be sealed with tamper proof bottle seal. The seal
no. shall
be recorded in the copies of Shipping Bill and AR form. The copies of
Shipping Bill and the AR form shall be duly endorsed with the
examination report and loading report
recording the container number etc. and this shall be
jointly signed by the Customs, carrier and the exporter’s
representative.
(c) The carrier shall then transport the containers by road or/and rail
upto the
LCS. At the LCS, both transference copies of Shipping Bill shall be
submitted
by the carrier to the proper officer of Customs. The Customs Officer
shall
inspect the seal of the container and if found intact and the seal no.
tallies with
the Shipping Bill, he shall record the same in the transference copies
of the
Shipping Bill and the AR 4 form, as given below, and put his name,
signature
and date before allowing the movement of the containers into
Nepal/Bangladesh, as the case may be.
"Inspected and seals found intact, Seal Nos. found to tally with
the Shipping Bill and
AR 4 form".
(d) In case the Customs seal on the container is found broken or
tampered with
or some discrepancy found in the seal nos., the matter shall be brought
to the
notice of the Deputy/Assistant Commissioner of Customs and such
container
shall be subjected to 100% examination. If any deviation from the
Shipping
Bill or invoice is detected during examination, adjudication proceedings
may
be initiated.
(e) In case the Customs seal on the container is found intact as per
documents
and the documents are in order, the Proper Officer at the LCS shall
endorse
the transference copies of Shipping Bill with "Export
Allowed". He may also
make an endorsement to the effect that the container has been duly
identified
by him and has crossed the border into Nepal/Bangladesh on both the
copies
of Shipping Bill and AR form at the time of actual export. One copy of
the
Shipping Bill may be retained at the LCS and the other transference copy
shall be returned to ICD/CFS from which the container had originated.
(f) On receipt of transference copy of the Shipping Bill, the Customs at
the
originating ICD/CFS shall match it with duplicate copy of Shipping Bill
so as to
ensure that the goods have been exported. If the copy is not received
within
90 days, the Assistant/Deputy Commissioner of Customs at the originating
ICD/CFS may raise a demand on the custodian equal to the export duty and
Drawback in respect of the export goods in addition to any other action
that
may be taken against the exporter. He may also intimate the DGFT and RBI
accordingly. The matter shall also be reported to the jurisdictional
Commissioner of Central Excise for recovery of excise duty on the goods.
(g) To ensure safety and security of goods during transit to LCS, the
custodian of
the ICD has to furnish a bond with security as is being done for
movement of
cargo from ICDs/CFSs to the gateway port. The bond shall be debited with the value of the goods every time a container
is given to carrier for transport.
The amount can be re-credited once the proof of export is received.
(h) The facility for movement of export cargo from ICDs/CFSs to Nepal
and
Bangladesh mentioned above shall be available if cargo is moved through
LCSs at Petrapole and Gede in Indo-Bangladesh border and Raxaul and
Nautanwa (Sonauli) at Indo-Nepal border."
[Refer Circulars No.18/2002-Cus., dated 13-3-2002 ;and No.
61/2003-Cus., 18-7-2003]
