CE

1. CENTRAL EXICISE PROCEDURE FOR
EXPORTS
Any excisable goods can be exported without payment of
duty under Rule 19 of Central Excise Rules 2002. A notification
No.42/2001-C.E(N.T) prescribes the procedure specifying the
condition to be followed.
 The goods are to be exported under ARE-1 which have to be
submitted in 5 copies.
 Bond (B-1) or letter of undertaking (LUT) as the case may
be has to be furnished.
The bond or LUT can be executed with A.C/D.C having
jurisdiction over the factory or maritime commissioner or
nominated A.C/D.C (export) in a Commissionerate.

2. After furnishing the bond/L.U.T the
merchant exporter shall obtain certificate in
form CT-1 from Supt.C.E. having control over
the factory.
The manufacturer – exporter or merchant
exporter shall file application in form ARE-1
and in the case of merchant exporter,
manufacturer also sign the ARE-1. The
manufacturer executes LUT and the merchant
exporter executes bond with B.G as the case
may be.

3.  The ARE-1 shall be in 5 copies. The first and
second copy will be given to the exporter. The
triplicate or third copy will be forwarded to A.C/D.C
accepting bond or LUT. The fourth copy will be
retained by Supt. for his office records. The fifth
copy will be with the exporter for claiming any
incentives
Export consignments under claim for drawback
and DEPB scheme will be sealed by Supt. (C.E) and
other cases by Inspector.
Sealing by C.Excise is optional. Goods which are
not examined and sealed will be examined at the
customs end.

4.  Customs will inspect the C.E. seals and
other particulars with reference to
invoice, ARE-1, packing list etc. In other
cases goods will be examined.
 Original will be given to the exporter and
the duplicate will be sent in a sealed
cover to the bond accepting authority or
the authority who sanction rebate.

5.  The manufacturer – exporter can seal the
packages with his own seal but the ARE-1 should be
signed by M.D of the company or any higher rank
official authorized by him.
Original and duplicate should go to Customs, the
triplicate and the fourth copy should be sent to Supt.
within 24 hours of removal of goods. The Supt. will
send triplicate to the A.C. Division (bond/LUT
accepting officer).
Self Sealing

6. Exporter’s Responsibility
The exporter once in a month should
send a statement enclosing original
(ARE-1 with certification of exports, S/B
copy , bill of lading) to the A.C. Central
Excise to give proof of export.
The exporter can take credit after the
statement has been accepted by the
Supt.
For any reasons the goods are not
exported the exporter has to deposit the
excise duty on finished goods. For any
failure fine/penalty will be imposed.

7. Procurement of materials for
manufacture and export
 Rule 19(2) of C.Excise Rules 2002 permits
obtaining of materials duty free subject to certain
conditions as per Notification 43/2001-C.E(N.T).
 The manufacturer has to register with Central
Excise, he must make an application and execute
a bond under Removal of Excisable Goods at
concessional rate of duty for Manufacture of
Excisable Goods Rules 2001.
 Input – output ratio have to be furnished.
 The manufactured goods should be exported
under ARE-2.

8.  In terms of the above rule he will specify in the
application the quantity, description and duty
leviable on the subject goods.
 The A.C. will counter sign the application after
execution of bond for the duty payable with
proper security.
 One copy will be given to Supt. of the
manufacturer, two copies to manufacturer and
one copy will be retained by the A.C. One copy
given to the manufacturer will be forwarded to
the manufacturer of subject goods.

9. Movement of goods from factory to
warehouse or warehouse to warehouse
 The consignor or manufacturer will send the
goods under ARE-3 in triplicate to the
consignor’s or exporter’s warehouse with
invoice.
 He will submit the fourth copy to his Supt. in
charge within 24 hrs.
 The exporter/ Consignee shall submit the
original received from the consignor to his Supt.
in charge within 24 hrs.
 The Supt. in turn countersign the original and
send the same to consignor/manufacturer’s
Supt. within 90 days.

10.  For procuring the goods duty free from the
manufacturer the consignee will execute a bond
with A.C.C.E (B-3 bond) with bank guarantee of
25%. He will then obtain CT-2 certificate from
Supt. in charge and forward the same to the
manufacturer. The consignee will debit the duty
payable in the bond.
 The consignor will send the goods under ARE-3
mentioning CT-2 serial number and compare the
duty debit.
 After receipt of goods under ARE-3 the
exporter/consignor will remove the goods for
export under ARE-1. within 6 months of receipt
of goods.

11. Rebate Claims
 Under Rule 18 C.E. Rules 2002 any exporter can claim
rebate of duty paid on finished goods and also input
stage rebate on the materials used in the manufacture
of export goods.
 For claiming rebate of excise duty the assessee has to
make a request in his letterhead enclosing following
documents:
1. Original copy of ARE-1 duly endorsed by
customs officer. 2) Invoice 3) self attested
copy of shipping bill (S/B). 4) self attested
copy of bill of lading. 5) Disclaimer certificate
(in case where the claimant is other than the
exporter)
 After comparing the duplicate ARE-1 and triplicate and
due verification A.C. will sanction the rebate.

12.  For rebate on materials used in the manufacture
of export goods the manufacturer shall file
declaration with the A.C. furnishing the ratio of
materials (i.e. raw materials, components, parts
etc) used, formula of process, rates of duties etc.
 The A.C after satisfying himself will grant
permission to manufacture and export.
 The rebate claim shall be made in a letter
enclosing 1) Original copy of ARE-2 endorsed by
customs 2) Invoice issued under Rule11. 3) Self
attested copy of S/B. 4) self attested copy of B/L
or Airway Bill. 5) Duplicate copy of ARE-2
received from customs officer in a sealed cover.

13.  If the A.C is satisfied with the particulars
furnished he will sanction rebate. If the
export is by merchant exporter both the
manufacturer and merchant exporter shall
sign the ARE-2.
 The input stage rebate will be allowed only
if the manufacturer maintains a register of
duty paid inputs and account of finished
goods manufactured and exported.

14. No rebate will be granted if
1) Drawback claim is filed for the export.
2) Export is made under advance license
issued before 31.3.95.
3) where input credit has been availed.
4) Market price is less than rebate amount.
5) The amount of rebate is less than
Rs.500/-