Circular No.284/118/96-CX
dated 31/12/96

Government of India

Ministry of Finance

Department of Revenue, New Delhi

Subject:- Central Excise – Simplification of Export procedure – Regarding

Representations have been received regarding the difficulties faced by the exporters. The matter has been examined by the Board. the issue raised and the clarifications thereon are as under:

1. Delay in allowing credit in running bond account

Discharge of the bond/ grant of credit in running bond account in cases where bond is executed under rule 13 or rule 14 in invariably delayed because of the time taken in reaching acceptance of proof of export in the office of Jurisdictional Range Officer from the Maritime Commissioner. In this regard, suggestions have been made that instructions could be issued by allowing provisional credit in running bond on the strength of exporters” copy of AR-4 certified by Customs


From time to time, the Board has issued detailed instructions regarding availment of provisional credit in the case of delay in receipt of Department”s copy of AR-4/ AR-4A. These instructions were contained in Board”s Circular No. 44/80-CX.6 dated 26.9.80, No. 44/82-CX dated 8.12.82 and Circular No. 43/85-CX.6 dated 5.11.85. These circulars mention, inter alia, that provisional credit can be allowed on the basis of the attested photocopy of the exporter”s own copy of AR-4/ AR-4A duly certified by the Customs Officers. The instructions further provided the show- cause notices need not be issued where such credit has been taken. these instructions are reiterated mutatis mutandis. However, final credit will continue to be allowed only on receipt of intimation from the Maritime Commissioner regarding final acceptance of the proof of export of the consignment. Maritime Commissioner will ensure that such intimations are issued as expeditiously as possible. to facilitate the correlation, important particulars like vessel name, rotation number etc. could also be noted in the running bond account.

Further under the new export procedure circulated vide Circular No. 87/87/94-Cx dated 26.12.94 a provision has been made to hand over the duplicate copy (by the Customs at the port of Exports) and the triplicate copy (by the Range Superintendent) of the AR-4 meant for the Maritime Commissioner or the jurisdictional Central Excise Officer, as the case may be, to the exporter in a sealed cover for being handed over to the concerned Officer. Customs offers should be asked to grant this facility whenever requested.
2. Delay in allowing export at the port of export

Export cannot be executed unless triplicate copy of AR-4 reaches the Customs Officer from the Superintendent of Central Excise. Due to this, the exports are delayed considerably.


Para 5 of Board”s Circular No. 87/87/94-CX dated 26.12.94 provides that exporters are allowed to remove the goods for export on their own where they do not want examination to be done by the Central Excise Officers. It has been provided only for the sake of verification that in such cases they shall, within 24 hours of the removal of the consignment, deliver triplicate copy, quaduplicate copy, quintuplecate copy and sixtuplicate copy of AR-4 to the Range Superintendent. Accordingly, it is clarified that the Customs Officers should not clear such goods unless they execute necessary bond in terms of Rule 13 or Rule 14, as the case may be and they should also indicate the bond number and the authority before whom the bond is executed in the relevant column provided in From AR-4.
3. Difficulties in executing bond with sureties.

Earlier accredited export houses were allowed to execute bond without surety. This has however been changed and it is now obligatory vide Board”s Circular No. 87/87/94-CX dated 26.12.94 that even such exporters should execute the bond with surety. This has created a lot of hardships to the exporters.


Rule 13 and rule 14 provides for execution of a bond with surety or bond with security. To remove the hardship in executing surety/ security it has been decided that bond may be taken without security/ surety in case of following categories of exporters:-

–  Super Star Trading House

–  Star Trading Houses

–  Export houses

–  Registered exporters (Registered with relevant Export Promotion Council)

–  Manufacturers registered with Central Excise Department,

Subject of the condition that-

(i) all the exporters have not come to the adverse notice of the Department in the last three years

(ii) all the formalities required under Central Excise Acts and Rules related to exports are regularly complied with by the Exporters.

(iii) A copy of the registration -cum-membership certificate (RCMC) duly attested by the exporter is submitted.

This facility can be withdrawn without prior notice to nay exporter if he comes to the adverse notice of the Department.
4. Registration of SSI units with Central Excise Department

Units whose domestic sales are below Rs. 30 lakhs per annum are also being insisted to be registered with Central Excise Department, especially in Kanpur Commissionerate on the ground that their turnover including the export turnover in more than Rs. 30 lakhs. Earlier, such units were not required to be registered as there is no excise duty upto the turnover of Rs. 30 lakhs.


It has been clarified vide Board”s Circular No. 212/46/96-CX dated 20.5.96 that a unit whose value of clearance for home consumption was less than Rs. 30 lakhs in the preceding financial year or during the current financial year will not be required to take Central Excise Registration.

2. all the previous instructions which are contrary to these instructions stand modified.

3. Board desires that instructions contained in this latter should be followed scrupulously in order to facilitate the exports. A serious view will be taken where the complaint of undue hardship in such cases are received.

(P.K. Sinha)
Under Secretary (CX.6)

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Category : Excise Duty (4056)
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