Export under Claim for Rebate of Duty on Excisable Materials used in the Manufacture of Export Goods (Rule 12 (1) (B))

Under Central Excise Rule 12(1)(B) rebate has been granted on the duty paid on raw materials/inputs used in the manufacture of the finished goods exported from India except to Nepal or Bhutan. Rebate may be granted on any excisable materials used in the manufacture and packing of the goods exported. The rebate of input stage may be claimed on the export of all finished goods whether excisable or not. In order to claim this rebate on the input stage, the export must be in the name of the exporter. The rebate may be granted on the duty paid on raw materials, consumables, components, semi-finished goods, assemblies, subassemblies, intermediate goods, accessories, parts and packing materials required for manufacture of export goods.

The rebate on input stage cannot be claimed where:

i) the finished goods are exported under claim for Duty Drawback.

ii) the finished goods are exported in discharge of export obligation under a Value Based

Advance Licence or a Quantity Based Advanced Licence issued before 3 1-03-1 995.

iii) the facility of input stage credit is availed under MODVAT provisions under Chapter VAA of Central Excise Rules, 1944.

The manufacturer of finished goods are required to file a declaration in quintuplicate to the Collector of Central Excise having jurisdiction over the factory. The declaration shall contain details of finished goods to be exported, the details of materials required and their consumption ratios. The Collector of Central Excise may nominate suitable officer for verifying the declaration. The officer shall examine and verify the information

Furnished by the manufacturer. If the officer is satisfied, he may grant permission to the applicant for manufacture and export of finished goods under claim for Rebate of Central Excise duties paid on materials inputs used in the manufacture of finished goods.

Procedural Formalities: The manufacturers are required to prepare AR5 Forms in Sixtuplicate. He shall submit them to the Jurisdictional Superintendent of Central Excise atleast 24 hours before the removal of the goods for export from the factory. Where export goods are dutiable the manufacturer may avail the facility of export, without payment of Central Excise duty on finished goods under Central Excise Bond (Rule 13(l)(a)). Finished

goods may also be exported after payment of Central Excise duty liveable on finished goods under claim of Rebate (Rule 12(l)(a)).

The exportable goods under AR5 form will be moved directly from the place of manufacture to the place of export. The packages are required to be marked legibly in ink or oil colour in a durable manner with progressive number. The Superintendent of Central Excise shall verify the information contained in AR5 form. The Superintendent of Central Excise shall examine and verify the facts, certificates and declaration made by the manufacturer. If the Superintendent is satisfied, he will allow the clearances for exports by signing and stamp on AR5 forms. The Superintendent shall draw samples wherever feasible in triplicate.

He would handover two sealed samples to the manufacturer or his authorised agent for delivering to the Customs Officer at the point of export. He would retain the third set for record. The export consignment shall be sealed by the Superintendent of Central Excise before permitting clearances. The Superintendent of Central Excise will handover original, duplicate and sixtuplicate copies of AM forms to the exporter. Triplicate copy will be sent to the Jurisdictional Assistant Collector of Excise. Quadruplicate copy to be given to Chief Accounts Officer at the Collectorate headquarter.

The original, duplicate and sixtuplicate copies of the AR5 forms shall be presented by the exporter or his agent to the customs officer at the point of export along with the goods, Shipping Bill and sealed samples. The customs officer shall examine them carefully. If he is satisfied, he may clear the goods for shipment. After the shipment of the goods the customs officer would make endorsements in the original, duplicate and sixtuplicate copies of the AR5 forms by putting his signature and stamp. He would give the original and sixtuplicate copies to the exporter. Thc duplicate copy will be sent to the Assistant Collector of Central Excise.

The exporter will use the original copy of ARS form for claiming rebate from the Jurisdictional Assistant Collector of Central Excise. Sixtuplicate copy will be presented in the customs house for record.

Claiming of Rebate: The application for rebate is made to the Jurisdictional Assistant Collector of Central Excise. Where exports are under claim for rebate under Rule 12(1)(a), the same should be claimed in the combined application for rebate.

Documents: Following document should be submitted for filing claims:

i) Original copy of AR5 form duly endorsed by the customs officer.

ii) Duly attested copy of Shipping Bill (Export Promotion Copy).

iii) Duly attested copy of Bill of Lading/Airway Bill.

iv) Duplicate copy of Central Excise Invoice (where rebate under Rule 12(lj(a) is also being claimed).

v) Duplicate copy of the AR5 form received from the customs officer in a sealed cover (if obtained).

If the Assistant Collector is satisfied, he will sanction the rebate.