Recently there have been drastic changes in the Central Excise Rules and Procedures covering export of Excised goods. New Rules 12, 13, 185, 187, 187A, 187B and 189 have substituted the old rules as a measure of simplification and rationalisation.
Form AR 4Ahas been merged with the new Form AR 4. The highlights of the new procedure for Excised goods are given below:
(1) Now there is only one new Rule 12 for exports under claim of rebate of Duty. New Rule 12 is for granting rebate of duty for end-stage, i.e. finished stage Duty as well as input stage Duties. Hence, it integrates the provisions of superseded Rules 12,12A and 191A.
(2) There is one new Rule 13 for export of goods in bond as well as utilisation of raw materials, etc., without payment of duty for manufacture and export of excisable goods. Prior approval of manufacturing formula for export goods (under the old rules), has also been dispensed with.
(3) The term ‘manufacture’ for the purpose of export has been enlarged to include any kind of processing of blending of any goods or making alternations or any other operations thereon.
(4) (a) No intimation is required to be given to Central Excise Officers by an exporter if he desired that examination will take place only at the point of shipment, i.e. at ports, airports or land customs stations only.
If the exporter desires examination of export goods in a factory of warehouse or other point of storage and not at the point of export, then prior intimation is to be given to Central Excise Officers, who will examine and seal the goods.
Hence, self-removal procedure for export of goods where no examination is required in factory/warehouse has been introduced;
(b) Rebate claim can be lodged either with Maritime Commissioner at the Port of shipment or the Assistant Commissioner having jurisdiction over the factory or warehouse of the exporter.
(c) With regard to marking and numbering on export packages, the Commissioner has been empowered to relax any of the conditions of Rule 185 of the Central Excise Rules.
(5) Chapter X Procedure of Central Excise Rules has been made applicable to movement of non-duty paid inputs from the place of their manufacture to the place of manufacture of export goods.
(6) In case of export of Duty-paid goods under claim of rebate of Duty, facility which was hereto available only to some of the goods, notified on a case to case basis, has been extended to all items permitted for export.
(7) Earlier minimum limit of rebate of Rs 50 has, however been enhanced to Rs 500/- with a view to rationalise the system.
(8) The facility of manufacture under bond of export goods has been extended to all goods including intermediate goods, even if they are manufactured by a job worker.
(9) The distinction between Forms AR4, AR4 (land) and AR4A has been removed. These forms were replaced by a single modified (and further revised in March ’95) form AR 4 which can be utilised for export in Bond of all Excisable goods by any mode, i.e. sea, air, post, land.
When manufacturers desire to clear Excise goods for export without examination under Rule 187, they will issue the AR4 by themselves without the countersignature of the Inspector of Central Excise.
When they desire the examination done at the factory to waive examination at the port by the Customs, they will use the same form AR4 for examination in the factory as is being done previously in AR4s.
In form AR4, they will also indicate from whom they will claim the rebate or by who proof of export is to be admitted on the basis of the Bond executed for such exports.
Moreover, AR4 form is now both exports in Bond and under claim of rebate of Duty on finished goods.
(10) The procedure for export in Bond to Nepal/Bhutan and under the procedure of payment of Excise Duty to His Majesty’s Government of Nepal has been completely revised.
(11) The procedure for export of ship stores in Bond has also been modified.