CENTRAL EXCISE CLEARANCE PROCEDURES for Export in India Part 2

Posted on 10 April 2023 Category : Export

The information provided here is part of Online export import training guide

CENTRAL EXERCISE CLEARANCE PROCEDURES for Export in India – Part 2

In this article, I am going to explain about Central Excise clearance procedures.

CENTRAL EXERCISE CLEARANCE PROCEDURES for Export/Import in India

The procedure to obtain central excise clearance is classified into two ways categories:

Procedure for central excise clearance in respect of exempted units.

Procedure for central excise clearance in respect of units, other than exempted units.

Procedure for Central Excise Clearance in Respect of Exempted Units

Definition of Exempted Unit

A manufacturing unit is treated as an exempted unit if

(i) Goods manufactured are not excisable under the Central excise and Salt Act,1944 and its regulations there under and

(ii) Value of goods for home consumption, known as domestic turnover, does not exceed Rs. 50 lacks in case of non- SSI unit and Rs. 100 lacks in case of SSI unit.

Excise Clearance Procedure

The exempted units are not required to obtain Central Excise Registration. However, they are required to file declaration with central excise if their domestic turnover exceeds the “specified limit”. The specified limit is Rs. 10 lacks less than the exemption limit. So, the specified limit is Rs.40 lacks in case of non-SSI unit and Rs. 90 lakhs in case of SSI unit. When the domestic turnover is less than the specified limit, even declaration is not required to be filed. Non-SSI unit has to file the declaration only when its domestic turnover exceeds the limit of Rs.90 lacks. The declaration is to be submitted only once for the purpose of obtaining exemption from registration. The exempted unit has to obtain the exemption letter from Central Excise only when the domestic turnover crosses the specified limit. The purpose appears to be just to alert the central excise that they have to keep a watch on the unit as its domestic turnover may exceed the exemption limit soon, then it would cease to be an exempted unit and the unit has to pay excise duty.

The exempted unit has to give reference to the exemption letter in its invoice. That invoice serves as the proof for central excise clearance. There is no need for them to obtain central excise clearance till it becomes non-exempted unit. If a manufacturing unit is totally exporting its goods and does not have any domestic turnover, it always remains as an exempted unit.

Procedure for Excise Clearance in Respect of Units other than Exempted Units

All the manufacturing units other than the exempted units are liable to obtain the Central Excise registration. Such manufacturing are required to obtain clearance of the Central Excise Authorities in respect of shipment of goods, subject to the levy of excise duty. They have to pay duty of excise before shipment is made. Now, ‘duty of excise’ has been changed to ‘Central Value Added Tax’ (CENVAT).

Have you satisfied with this article about Central excise clearance procedures under Exports?

Would you like to share your experience in clearance of Central Excise product under exports? Share your knowledge about this subject – Central excise clearance procedures and formalities under Export.

This article is a continuation of article - CENTRAL EXERCISE CLEARANCE PROCEDURES for Export in India – Part 1. If you have not gone through part 1, please read CENTRAL EXERCISE CLEARANCE PROCEDURES for Export in India – Part 1

Also read - How does CENVAT Credit work? 2 CENTRAL EXCISE CLEARANCE OPTIONS for Exports in India Central excise clearance options CENTRAL EXERCISE CLEARANCE PROCEDURES for Export in India – Part 1 Procedure for Central Excise Clearance Under Claim of Rebate

The above information is a part of Import Export course online

Comment below your thought on Export clearance procedures under Central Excise.

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Comments

Nobil Nair: On 10 March 2014 Hello sir, I would like to know about merchant export & trader export procedure and what are exemption and incentives will get through aforesaid exporters. Am waiting for your reply...

Mukesh: On 21 March 2014 is any procedure of export is possible without excise registration

mohd fahad: On 31 March 2014 sir really it is a fabulous articles prepared by u i am a beginner and have a keen interest in it so plz tell me about how to contact buyers thankyou..

pooja kaim: On 07 August 2014 very thankfull to you for the article.. it has helped me a lot.

Ashmead M Ali: On 12 February 2015 I live in Bermuda. I want to import some items from India (at this time – a new car, sofa set and dining set). I am being told that if I cannot produce a H Form that I must pay 12.5% VAT as the item will be listed as a local sale to the person consolidating the good in the container.From all that I have read so far, it is confusing as to whether I can obtain that H Form.Can you advise me on the options available? If I wish to continue buying from India (I buy from China regularly and do not have this issue) it would not be cost effective to keep paying 12.5% on all my purchases.I thank you for your assistance.

Rajeev Kumar: On 12 February 2015 Our firm is a Manufacturing unit covered under excise. Recently we got some export queries related to our line of business but those parts are not manfactured in our unit. Can we export the parts in our firm by purchasing from other dealers , if yes then what are the excise obligations on these parts ?

Saad Gundigara : On 12 February 2015 I am Saad Gundigara from Bhavnagar, Gujarat, INDIA-364001. I am writing this email regarding the subjected matter. I was searching for some helpfull instruction for exporting of goods, and while on my first search on Google, I have gone to your first website page- www.howtoexportimport.com. I had read certain article which will help be developing my business in future. Anyhow I would like to give you special a lot thanks & appreciation & a true citizen for sharing your knowledge among the people like me and to make efforts to make India more and more educated, knowledged cultured and sharing as well as brotherhood harmony. I wish the great God bless you with all your peacefull dreams and may your prayer come true...As I am from Bhavnagar, let me know if you have any contact for any of your work or proposal in bhanagar area, I will try to get with you in touch. Again, thanks a lot & I would like to have a reply from your side too... Thanks

Admin: On 12 February 2015 Hi Ashmead M Ali, H Form under Import and export of goods from India depends up on personal use and commercial use. If you are importing for commercial purpose, you need to register with various government agencies. However, for personal purpose, there are some tax exemptions for which you need to contact a professional on this subject.

Admin: On 12 February 2015 Job work increase value addition, thereby government promote such activities. So you may contact the authorities to know more.

chukka Venkat : On 12 February 2015 I am Satyanarayana from Vizianagaram dist. Andhrapradesh.I am planning to set up a Jaggery Plant in my Village.I want it to export to get better price. Because my friends doing the business selling Jaggery in India not getting any benefit.So I would like to request your valuable suggestions If I want to Export, i what is the procedure to follow and I what are the good things and bad things in Exports.

ramki glitz : On 12 February 2015 , i am ramki from madurai , as far i have completed my BE in computer science engg , i have visited your blog from last month , i am very much happy about ur service to youngsters ur awsome i planned to start a export buisness ,but evantually i dont have any support or family background in export and importso i am going to be a initiator to this buisness can u give some guidelines about export and importis it necessary to be as an assistant or employee for years to get knowledge in this field , i am totaly blank about exportit will be very much help full if u guide me sir awaiting for ur reply

Suraj Singh: On 12 February 2015 we send our consignment to South Africa but due to some unforeseen compulsions had to receive payment in account different from IE account.Could you suggest some way out to get the clearance done in easiest possible way.

ShabK: On 19 February 2015 Can you please give me the Notification/Circular/etc that talks about Non-SSI units where when Domestic turnover up to 50lacks, they are exempted from Excise registration.

G.Srinivas: On 11 March 2015 HI SIR I need a clarification on export under merchant export.suppose i have planed to export the shpt and raised the tax invoice and ARE-1 on 11.03.15 also submit all dox to CEx-office, but unfortunately my consignee want to send the shpt after 20 days i.e 31.03.15.my doubt is can i export the shpt with same ARE-1 and tax invoice or cancel the all dox and apply the fresh ARE-1 to CEX office. pls support this isssue. thanks in advance.

Dhananjaya Naidu: On 28 March 2015 Dear Sir, we have exported without LUT, ARE 1 we have paid the duty nearly 11 lakhs we don't know the procedures. can we get the refund of the duty paid. after submitting the original doc. of BL,Shipping bill etc.,

Ashok Kumar: On 30 October 2015 I have recently imported crockery from Europe. My clearing agent says I have to be registered with Central Excise. It looks funny. Some one may help me is it necessary.

M.Prasad: On 17 February 2016 Dear Sir We are trader and expecting export order very soon we would like to know about merchant export & trader export procedure and what are exemption and incentives will get through export. pl adv. Regards M.Prasad

APPLIED : On 15 April 2016 Dear Sir, We are a manufacturer of valves. Need to export valve with actuator to client. We will be purchasing actuator from Pune. This company is excisable, so we will be issuing ARE1 & CT1 forms to them. The delivery of actuator will be at Gujarat, but to test the valve with actuator we will open the sealed cases of actuators for testing. Can we open the excise sealed cases ? Please guide us to avoid any consequences and delay in shipment. Thank you in advance. Sincerely, Applied

Hissan Shah: On 20 May 2017 DEAR SIR, BEING MERCHANT EXPORTER , PART QTY IS EXCISE SABLE AND ENJOYING BENEFIT BY CT-1. BUT WHAT ABOUT THE OTHER MATERIAL AS I HAVE TO MAKE BILL WHOLLY TOGETHER. HOW TO PROVE CUSTOM DEPARTMENT FOR NOT PAYING OF TAXES.