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Nepal export

Rajaram M (Asst. Manager Materials) (180 Points)

23 August 2011

We are exporter in DTA. We planned to do export to Nepal first time.

Could anyone please explain the Export to Nepal from DTA manufacturer without payment of Duty?

In this case Importer has already paid to the exporter in India Currency.

Moreover, Importer in not ready to bear any excise duty charged in the Invoice.

What is the procedure for Export of goods falling under chapter 39 19 1000 to Nepal without payment of duty.
Is Excise duty refundable if Exporter will pay the duty?
Do we need raise the Excise Invoice uder rule 8 & 11 CE rules 2002 except Nepal Invoice?
If Excise duty is refundable, what is the procedure to claim the same

Many thanks in advance.

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2 Replies

sunny (ASST MGR) (333 Points)
Replied 23 August 2011

As per my knowledge, Excise duty is not refundable in case export to Nepal

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Monuettan (Sr.Executive) (59 Points)
Replied 24 August 2011

I hope your query can be solved by reading this.

CHAPTER 7

EXPORT WITHOUT PAYMENT OF DUTY

Part-IV

EXPORT TO NEPAL AND BHUTAN WITHOUT PAYMENT OF DUTY

1. Introduction

1.1 The conditions and procedure for export to Nepal and the Board in Notification No.45/2001-CE(N.T.), dated 26.6.2001(hereinafter referred to as the ‘said notification’) has specified Bhutan without payment of duty (under bond).

2. Places from where goods can be exported

2.1 Under the said notification, export can be made from any of the following places: -

(i) the factory of production or manufacture (ii) warehouse, or (iii) any other premises as may be approved by the Commissioner of Central Excise.

3. Forms to be used

3.1 The export shall be required to file a general bond in the Form specified in the said notification (Annexure-16) with such security or surety as may be specified by the concerned bond accepting authority. The bond shall be in a sum equal at least to the duty chargeable on the goods for the due arrival of export goods at the place of export (Land Customs Station) and their export therefrom under Customs supervision. The officer who will accept the bond, will also be responsible for discharging that bond upon furnishing proof of export by the exporter.

3.2 The bond shall not be discharged unless the goods are duly exported, to the satisfaction of the Deputy/Assistant Commissioner of Central Excise or Maritime Commissioner or such other officer as may be authorised by the Board on this behalf within the time allowed for such export or are otherwise accounted for to the satisfaction of such officer, or until the full duty due upon any deficiency of goods, not accounted so, and interest, if any, has been paid

3.3 Invoice in the Form specified in the said notification (Annexure-21) shall be used for export clearances. Six copies of invoice shall be prepared. This document shall bear running serial number beginning from the first day of the financial year. During this year, for the sake of continuity, the serial number, as started from 1.4.2001, may continue. The stationary for invoice under erstwhile notification no. 50/94-CE(N.T.), dated 22.9.1994 may be used for the time being” during this financial year. On the invoice, certain declarations are required to be given by the exporter. They should be signed by the exporter or his authorised agent.

3.4 Certificate shall be required in the Form specified in the said notification (Annexure-22) from the Reserve Bank of India or any other bank authorised to deal in foreign exchange by the Reserve Bank of India, for the receipt of full payment in freely convertible currency. Certificate may also be required where remittance is received in Indian Rupee.

4. Categories of exports and the conditions and safeguards thereto

4.1 Export under bond to Nepal or Bhutan where payment is in freely convertible currency

4.1.1 Export under bond to Nepal or Bhutan where payment is in freely convertible currency, shall be subject to following conditions, namely: -

(i) The importer in Nepal or Bhutan, as the case may be, shall open an irrevocable letter of credit in favour of the exporter in India, before the export takes place. However, this is not necessary int eh following cases of export:

(a) All excisable goods other than consumer goods and (b) Motor vehicle, if they are exported without payment of duty as –

(i) supplies to projects financed by any United Nations agency, the International Bank for Reconstruction and Development, International Development Association, the Asian Development Bank or any other multilateral agency of like nature; and (ii) to all diplomatic missions in Nepal or Bhutan provided the Indian Embassy or the Ministry of External Affairs certifies that the import is for the personnel of the diplomatic community;

(ii) The exporter shall furnish a bond in Form specified in Annexure-I of the above-mentioned notification before the Deputy/Assistant Commissioner of Central Excise having jurisdiction over the factory, warehouse, or the approved premises or such other officer as authorised by the Board on this behalf, from where the goods are removed for export to Nepal, as the case may be, or Bhutan;

(iii) After the exports are effected the exporter shall furnish a certificate of remittances from the Reserve Bank of India or an authorised bank in India, showing that full payment for the goods has been duly received in freely convertible currency, as defined in the said notification. On receipt of such a certificate and on the satisfaction that the goods have been exported in terms of the bond, the bond accepting authority shall discharge the exporter of his liabilities under the bond. 4.2 Export to Nepal in bond against payment in Indian rupee

4.2.1 As an exception to the above category of export, capital goods, as defined in the said notification may be exported under bond directly from the factory of manufacture to Nepal against any global tender invited by His Majesty's Government of Nepal without payment of duty, for which payment is received in Indian currency. Such exports shall be subject to the following further conditions, namely: -

(i) the exporter shall furnish a bond in specified Form before the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise or such other officer as authorised by the Board on this behalf; and (ii) the exporter shall furnish a certificate of remittances in specified Form from a bank in India showing that full payment for the goods has been duly received in Indian currency by the said bank;

4.2.2 On receipt of the certificate of remittances and on the satisfaction that the goods have been exported in terms of bond, the bond accepting authority shall discharge the exporter of his liabilities under the bond.

4.3 Export in bond of petroleum oil and lubricant products to Nepal

4.3.1 The export in bond without payment of duty of excise of petroleum oil and lubricant products to Nepal is permitted through the agency of Nepal Oil Corporation from calibrated stocks of M/s Indian Oil Corporation registered as a warehouse in accordance with the provisions rule 20 the said Rules, and situated at places notified for the purpose or purchased without payment of duty from tanks of other Oil Companies or Undertakings. For this facility, the Indian Oil Corporation shall be required to furnish a bond in the specified Form to the Deputy/Assistant Commissioner of Central Excise having jurisdiction over the installation from which the petroleum oil and lubricant products are to be exported.

4.4 Export in bond for supplies to Government of India Aided Projects in Nepal and the Embassy Cooperative Store and Embassy Petrol Pump located in Nepal for the bonafide use of officers and staff of the Embassy in Nepal

4.4.1 Export in bond for supplies to Government of India Aided Projects in Nepal and the Embassy Cooperative Store and Embassy Petrol Pump located in Nepal for the bonafide use of officers and staff of the Embassy in Nepal shall be subject to the following conditions, namely: -

(i) the exporter shall furnish a bond in specified Form to the Deputy/Assistant Commissioner of Central Excise; and (ii) the First Secretary (Economic), Embassy of India, Nepal, certifies the signature and stamp or seal of the person authorised to place the order for supply of excisable goods to the specified Government of India Aided Projects in Nepal;

4.5 Export without payment of duty to Kurichu Hydro Electric Project and Tala Hydro Electric Project in Bhutan

4.5.1 Export of all excisable goods without payment of duty to Kurichu Hydro Electric Project and Tala Hydro Electric Project in Bhutan shall be subject to the following conditions, namely: -

(i) The exporter shall furnish a bond in Form in specified Form before the Deputy/Assistant Commissioner of Central Excise having jurisdiction over the factory or warehouse from which the goods have to be cleared; (ii) The goods are supplied against one or more specified contract which have been registered with the Directorate General of Inspection, Customs and Central Excise in the following manner:

(a) Every Project Authority specified in the notification (notification no. 45/2001-CE(N.T.), supra, desirous of obtaining supplies under benefits of this notification shall apply in writing to the Director General, Directorate General of Inspection (Customs and Central Excise) [hereinafter referred to as DGICCE], 5 th Floor, Drum Shape Building, I.P. Estate, New Delhi for registration of the contract through Ministry of External Affairs as soon as the contract has been concluded with the suppliers; (b) The application shall be accompanied by the original deed of contract and list of items duly approved by the Ministry of External Affairs; (c) The Project Authority shall also furnish such other documents or other particulars as may be required by the DGICCE in connection with the project. (d) DGICCE, on being satisfied, shall register the contract by entering the particulars in a Register maintained separately for each project and shall assign a number in token of registration and communicate the same to the Project Authority and shall also return to the project authority all original documents which are no longer required. This number shall be indicated on all the invoices and other related documents. (e) A copy of the contract so registered along with the approved list of items shall be forwarded to the Commissioner of Central Excise having jurisdiction over the factory/warehouse to which the contract pertains for extending benefits under this notification and consequent benefits under the Central Excise to the supplier.

4.5.2 Amendment of Contract

(a) If any contract referred to hereinabove is amended, whether before or after registration, the Project Authority shall make an application for registration of amendments to the said contract to the DGICCE. (b) The application shall be accompanied by the original deed of contract relating to the amendment and a list of items pertaining to amendment, if any, duly approved by the Ministry of External Affairs. (c) On being satisfied that the application is in order the DGICCE shall make note of the amendments in the relevant entries. (d) The DGICCE shall forward copy of the amended contract and the amended list of items, if any, to the concerned Commissioner of Central Excise.

4.5.3 Finalisation of Contract

(a) Each Project Authority shall submit a statement of supplies received on quarterly basis along with relevant invoices and other documents to the DGICCE within one month from the last date of the quarter. (b) The Commissioner of Central Excise to whom a registered contract has been forwarded shall forward a statement, after all the items covered under the contract have been exported, to the DGICCE. (c) The DGICCE shall, on receipt of the statement, reconcile both and, if satisfied, finalise the contract and close the entry in the register.”

4.5.4 There should be a release order from the officer authorised by the General Manager of the concerned project authority covering he goods;

4.5.5 The exporter shall furnish a bond in the specified Form to the Deputy/Assistant Commissioner of Central Excise having jurisdiction over the factory or warehouse or the approved premises or from where the goods are removed for export to the specified project.

5. Export Procedure

5.1 Procedure at the place of despatch

5.1.1 Six copies of invoice shall be presented to the Superintendent or Inspector of Central Excise having jurisdiction over the factory, warehouse or any other approved premises along with the export goods;

5.1.2 In case of export for supplies to Government of India Aided Projects in Nepal and the Embassy Cooperative Store and Embassy Petrol Pump located in Nepal for the bonafide use of officers and staff of the Embassy in Nepal, the order from Project Implementation Authority shall also be presented;

5.1.3 the Superintendent or Inspector of Central Excise having jurisdiction over the factory, warehouse or any other approved premises shall verify the identity of goods with reference to descripttion mentioned in the invoice and the particulars of the duty payable but for export, and if found in order, he shall seal the consignment, tank or container with Central Excise seal or in such other the manner as may be specified by the Commissioner of Central Excise and endorse each copy of the export invoice in token of having such verification and examination done by him;

5.1.4 The said Superintendent or Inspector will allow export and distribute invoices in the following manner:

Original (First copy)	Hand over to the exporter
Duplicate, triplicate and quadruplicate (second, third and fourth copies)	Hand over to the exporter or his agent in a sealed cover for delivery to the Customs officer in-charge of the Land Customs Station through which the goods are intended to be exported.
Quintuplicate copy (Fifth copy)	Forwarded to the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise who has accepted the bond
Sixtuplicate (Sixth copy)	Retain for official record

5.1.5 The exporter or his agent shall then be free to remove the goods for export to Nepal through the Land Customs Station indicated on the respective invoices;

5.1.6 Where the goods are exported by land, the export shall take place through any of the following land customs stations, namely, Sukhiapokhri, Panitanki, Jogbani, Jayanagar, Bairgania, Bhimnagar, Bitamore (Sursand), Raxaul, Sonauli, Barhni, Nepalganj Road, Shohratgar (Khunwa), Jarwa, Katarniaghat, Gauriphanta, Banbasa, Jhulaghat, Dharchula, Naxalbari, Galgalia, Kunauli, Sonabarsa, Tikonia, or such other check-post as may be specified by the Board;

6. Procedure at the Land Customs Station

6.1 The exporter or his agent shall present the goods to the officer of customs in-charge of the land customs station along with the original copy of the invoice and the sealed cover containing duplicate, triplicate and quadruplicate copies and obtain acknowledgement;

6.2 Where the contents of all the copies of invoices tally and the packages, goods or container are satisfactorily identified with their seals in tact, the officer of customs in-charge of the land customs station shall make necessary entries in the register maintained at the land customs station and allow the goods to cross into the territory of Nepal or Bhutan and certify accordingly on each of the four copies of the invoice and indicate the running serial number in red ink prominently visible and encircled. In case the seals are not found intact, the officer of customs in charge of the land customs station may re-seal the containers with his own seal after satisfying himself as to the identity of the containers and the goods from the particulars shown on the invoice by opening and examining the goods, if necessary;

6.3 Distribution of invoices by Customs Officer:

Original (First copy)	Hand over to the exporter or his agent alongwith the goods for presentation to the Customs Officer of Nepal or Bhutan.
Duplicate and triplicate (Second and third copy)	Send to the Nepalese or Bhutanese Customs Officer in-charge of the check post through which the goods are to be imported into Nepal or Bhutan, as the case may be

6.4 Presentation of goods to Nepalese or Bhutanese Customs Officers: the goods are then to be produced before the Nepalese or Bhutanese Customs Officer, as the case may be, at the corresponding border check-post alongwith the original copies of the invoice. The Nepalese or Bhutanese Customs Officer shall deal with the original and triplicate copies of the invoice as directed by His Majesty's Government of Nepal or His Majesty’s Government of Bhutan and return the duplicate copy, after endorsing his certificate of receipt of goods in Nepal or Bhutan, as the case may be, directly to the officer of customs-in-charge of the land customs station in India;

6.5 Further distribution of invoices: The officer of customs in-charge of the land customs station shall forward the duplicate copy to the Central Excise Officer in charge of the factory or warehouse from which the goods were removed for export without payment of duty. For this purpose, the said officer in charge of the land customs station should keep a note of the return of duplicate copies from the Customs Officer of Nepal or Bhutan and remind the exporter for such copies as have not been received, failing which the exporter may be liable to pay full duty on such consignments;

6.6 The officer of customs officers, at the land customs station shall also maintain a separate record of all such in-bond exports of the goods without payment of duty and shall assign running serial number on the invoice at the time of export as indicated earlier;

7. Procedure for discharge of bond or the duty liability

7.1 Essential ingredients for discharge of bond have already been mentioned under each category of exports.

7.2 The general procedure would be - the exporter shall submit the quadruplicate copy duly endorsed by the officer of customs in-charge of land customs station to the Central Excise officer who has accepted the bond alongwith bank, certificate evidencing receipt of payment in freely convertible currency (in Indian Rupee in particular category), within six months from the date of removal of the goods. It may be noticed that earlier, the above mentioned period has been extended from ‘three’ months to ‘six’ months, as compared to erstwhile notification.

7.3 The Central Excise officer will tally the particulars with quintuplicate copy of the invoice received from the Central Excise officer who has allowed clearance from the factory or warehouse or any other approved premises and make suitable entries in Bond Account of the exporter, giving provisional credit or discharging the bond provisionally.

7.4 On receipt of the duplicate copy of invoice, duly endorsed by customs officer of Nepal or Bhutan from the customs officer in charge of land customs station, certifying export of the goods and after tallying the particulars with those in quadruplicate copy of the invoice make suitable entries in Bond Account and the obligation under the said bond will then be discharged.

7.5 In case of failure to export within six months from the date of removal from the factory or warehouse or any other approved premises, or shortages noticed, the exporter shall discharge the duty liability on the goods not so exported or shortage noticed along with twenty four per cent. interest thereon from the date of removal for export without payment of duty till the date of payment of duty in terms of the bond.