Central Excise Law

Export Promotion Schemes-:

1.In principal, it is conceded that exports should by and large be relieved of home taxes so as to make Indian manufacturers internationally competitive. The following main scheme have been evolved under Customs and Central Excise Acts to translate this principle into practice. They are just duty neutralization and remission schemes.

2.On Central excise side, warehouses have been set up at select centers for export. All goods supplied against international competitive bidding are charges to a nil rate of excise duty provided they are exempted from customs duties when imported. Validity period for all export promotion scheme licences has been extended to 24 months uniformly. All exporters with minimum turnover of Rs.5 Crores and good track record have been exempted from furnishing bank guarantee. All goods and services exported shall be exempt from excise duty for home clearance, has been made. Export Cess on export of all agricultural and plantation commodities has been removed. Balance export obligation will be waived for the exporters completing 75% of their export obligation in half the prescribed export obligation period.

3.Rebate of Duty on “export goods” and “material” used in manufacture of such goods.- where any excisable goods are exported, Rule 81 of Central Excise Rules, 2002 provides the grant of rebate of duty paid on such goods or duty paid on the material used in the manufacture of such export goods. However, export rebate shall be subject to such conditions, limitations and procedures as may be specified. Exports to Nepal are now at par with exports to other countries (except Bhutan) in view of the revised Treaty of Trade between India and Nepal.
In this respect of following Notifications have been issued:-

(a) Notification No.19/2004-C.E. (N.T.), dated 06.09.2004 for rebate on finished goods (except for exports to Bhutan).

(b) Notification No.19/2004-C.E. (N.T.) dated 06.09.2004 for input stage rebate too.

4.Export of goods under Bond i.e. without payment of excise duty on end product or their inputs- (i) as per Rule 19, any excisable goods (except wholly exempted or nil rated goods, but including goods cleared by a 100% EOU) can be exported without payment of duty (central excise duty as well as other duties of excise levied under separate enactments of Parliament like AED,NCCD, Education cess etc.) from the factory or warehouse or any other premises as may be approved by the Commissioner. As per sub-rule(2) of the said Rule 19, any premises from where any input is removed without payment of duty for use in the manufacture of export goods, may also be approved by the Commissioner. The bond facility is also available for export to Nepal and Bhutan if payment therefor is in freely convertible currency. Goods manufactured from inputs obtained under bond should be exported only under bond and not under rebate procedure. In case of default interest is now payable as per rate notified under Section 11AB of Central Excise Act. The Export under Bond is subject to the conditions, safeguards and procedures notified by the Board. In this respect following Notifications have been issued:-

(a) Notification No.42/2001-C.E.(N.T.), dated 26.06.2001 for export under bond of excisable goods (except Bhutan)

(b) Notification No.43/2001-C.E.(N.T.), dated 26.06.2001 for export under bond after procuring the inputs duly free under end-use exemption rules. of excisable goods (except Bhutan)

(c) Notification No.312/2007-C.E.(N.T.), dated 02.08.2007 for export under bond after procuring inputs duty free from EOU.

(d) Notification No.44/2001-C.E.(N.T.), dated 26.06.2001 for export under bond on removal of intermediate goods without payment of duty, for manufacture and export by holder of      DEEC and Advance Licence.

(e) Notification No.45/2001-C.E.(N.T.), dated 26.06.2001 for export under bond to Bhutan.