Tuesday, October 06, 2015     Category : Export India


Procedure for Central Excise Clearance Under Export Part 1



CENTRAL EXCISE CLEARANCE PROCEDURES for Export in India Part 1 copyCentral excise clearance is one of the procedures under exports and Imports in India. In this article, you will learn the procedures and formalities of central excise clearance under Export. Since export central excise clearance procedures and formalities may get amended time to time, you can update the rules and regulations of central excise in terms of export movement of goods.


Here we can discuss about various methods of central excise clearance procedures and formalities under export of goods.



Central Excise Clearance procedures Under Claim of Rebate (Without Examination)

Under this method, exporter pays excise duty and clears the goods on his own, without examination by the Central Excise Officer.


Application to Excise Authorities: The exporters are allowed to remove the goods for export, on their own, without getting the goods examined by the Central Excise officers. The application form – ARE-1 in such cases would be prepared in sixtuplicate, giving all particulars and declarations, after removal of goods. The exporter shall submit triplicate, quadruplicate, and sixtuplicate copies of ARE-1 to the Superintendent of Central Excise having jurisdiction over the factory or the warehouse, within twenty four hours of the removal of the consignment. He would retain the original and duplicate copies for presenting along with the consignment to the Customs Officer at the point of export.


Examination by the Central Excise:


The jurisdiction Superintendent of Central Excise shall examine the information contained in ARE-1 and verify the facts of payment of duty and other certificates/ declarations made by the exporter. After he is satisfied that the information contained in the ARE-1 is true, he will sign at appropriate places in the four copies of ARE-1 as under.

(i) Triplicate: to the rebate sanctioning authority viz. Maritime Collector of Central Excise or the Assistant Commissioner of the Central Excise as declared by the exporter on the ARE-1. This copy, on the request of exporter, may be sealed and handed over to the exporter / his authorized agent for presenting to the rebate sanctioning authority.

(ii) Quadruplicate: To the Chief Accounts Officer in the Commissionerate Headquarters.

(iii) Quintuplicate: Office copy to be retained by the Central Excise Officer.

(iv) SIXT plicate: To be given to the exporter.


Examination by Customs Authorities:


In this case, the customs authorities would invariably examine the goods, as excise authorities have not examined goods. The rest of the procedure is the same detailed in the earlier procedure for Central Excise clearance under Claim of Rebate (WITH EXAMINATION).


Procedure for Excise Clearance under Bond / Letter Undertaking

The procedure under this rule is similar to the one under claim for rebate. This is governed under Rule 13.

Under this rule, there is no PLA(personal Ledger Account) as no duty is paid. Instead of payment of duty, the manufacturer exporter executes bond/letter of undertaking to the amount equivalent to the excise duty. Bond can be executed with surety or without surety. Such a bond is to be supported by the bank guarantee to protect financial interests of excise department. Exporters of the following categories are allowed to execute bond with surety and do not have to furnish any bank guarantee or cash security.

Super Star Trading House

Star Trading House

Trading House

Export House

Registered Exporters (Registered with relevant Export Promotion Council)

Manufacturers registered with Central Excise Department.


Letter of Under taking by Manufacture- Exporter


Manufacturer-Exporter is neither needed to pay excise duty nor file the excise Bond.

Manufacturer-Exporter can obtain clearance of export shipment by producing Letter of Undertaking. This is a great concession to the manufacturer who directly exports the goods.  Contd….. Part 2  Click here to read CENTRAL EXERCISE CLEARANCE PROCEDURES for Export in India – Part 2


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

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david jeffrey Says :
Friday, November 01, 2013
Great article and thank you for such valuable information. Correct implementation of import export procedures helps businesses in gaining a competitive edge, scale new markets with ease, improved returns on investments etc. One may take guidance from experts such as Global4PL in order to avoid costly trade compliance penalties.
Sujatha Moorthy Says :
Saturday, November 30, 2013
Useful information. However, one clarification sought is, whether it is true that for SSI units, the current exemption limit is upto Rs. 150 lacs. Kindly confirm. Also, what if the turnover is just Rs.2 to 3 lacs above the exempted limits and its liabilities and repurcussions if registration not applied for.
Narender Arora Says :
Monday, February 03, 2014
Great, thanks Sir for sharing such information free of cost, really useful
Surendran Kollerath Says :
Saturday, March 08, 2014
Hi Sujatha Moorthy, Exemption limit under SSI units may vary time to time. You may contact concerned government authorities to get accurate information.
Monday, October 27, 2014
Dear Sir, We need Submission of A.R.E.1 Copy to The Superintend office covering letter formet Thanks & Regards K. RAMAJAYAM
Rajesh M Says :
Monday, November 03, 2014
Dear Sir Please inform us the procedure of export clearance without ARE1 as we are not registered with Excise department. Thanks
Pradeep Says :
Wednesday, February 11, 2015
Hello sir, im pradeep from Puducherry. I'm one of your follower on howtoexportimport.com. I have a question sir. Does TIN number is necessary for a exporter? I'm a merchant exporter. I'm totally confused with it. Wait for your reply sir.
Sunil Pandya Says :
Thursday, May 28, 2015
Garment exporter while exporting do not export their own brand, they fix importer's at europe's and USA Brand Label, they take job work from another unit, what is the excise procedure for them?
harshit jain Says :
Monday, July 06, 2015
I am working as a research associate with one of the best automotive components manufacturing company of India. My client is looking for investment opportunities in Russia and is interested in exporting manufactured goods from India. how one can export in Russia and what are the barriers we can face. It will be very helpful if you can provide me detailed information on this matter.
Murugan Naikar Says :
Wednesday, July 08, 2015
I wanted to start the pulses exports, I wanted to know what all registration is must and get the certificate for clearance
mukesh Says :
Tuesday, July 14, 2015
Hi i want to ask that in case if i purchase raw material and having some process on it and convert it to in other form by some converter.and it quantity is change.and i am taking service from some one else.so should i need to give bill for service at export time. for example i purchase paper reel for produce paper napkin and i give it to converter 9 ton for convert.and it give me back 8.5 ton with finished good product.i mean paper napkin. should i give bill for service?At the time of export and submit to custom clearance agent? Here i taking benefit of excise and cst and i also what to claim for draw back.
Friday, October 02, 2015
Sir, Please let me know that if used capital goods engaged in manufacturing for years say more than 10 years are now going to be exported to except Bhutan and Nepal through merchant exporter. Cenvat credit on these capital goods were availed by the assessee. Which excise form & bond will be needed for duty free export ?

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