Export procedure under advance license

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2013 We need to Export the goods against procurement of Advance Authorization scheme & "Combination of Schemes Code 41. Duty Drawback under Brand Rate Fixation"
And after completion of Export need to make the rebate application. In this connection we need guidance under which Cenvat Credit Rules and Notifications to be mentioned at the time of Export on ARE1.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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11 February 2013 Advance Licence is an export facilitation scheme, whereby, the exporter is permitted to import the input materials without payment of Customs duties and utilise them in the manufacture of goods, which are subsequently exported in discharge of the export obligation cast on such Advance Licence holder. Chapter 4 of the Foreign Trade Policy (FTP) governs the Advance Licence scheme. The Department of Revenue has also issued relevant exemption Notifications, time to time, to govern
the imports against such Advance Licences.

Rebate of duty:
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Exports under Central Excise are governed either by Rule 18 or by Rule 19 of the Central Excise Rules 2002. Rule 18 provides for two types of rebates, viz.,
1. Rebate of duty paid on the manufactured excisable goods which are exported (final product rebate) and
2. Rebate of the duty paid on the materials which are used in the manufacture of such export goods (input stage rebate).

Rule 19 consists of three sub-rules, of which, Rule 19(1) provides for the export of manufactured excisable goods without payment of duty from a factory of manufacture / warehouse / any other approved premises and Rule 19(2) prescribes
the procedure for removal of any materials from a factory / warehouse / approved premises, without payment of duty, for use in the manufacture of goods which are ultimately exported. Rule 19(3) prescribes the conditions/safeguards/procedures for the above said sub rules. In other words, Rule 19(1) governs the clearance of excisable goods (final products) without payment of duty and Rule 19 (2) provides
for clearance of excisable goods (inputs) without payment of duty for use in the manufacture of export goods.