Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs, New Delhi
Subject: Central Excise- Storage and transshipment of excisable goods once cleared from a factory or any approved premise in bond (under Rule 13) before the same are exported- Regarding.
I am directed to say that doubts have arisen whether the excisable goods cleared in bond under Rule 13 of the Central Excise Rules, 1944, from a factory or any approved premise, can be stored and transshipped at any other place and if so, whether such transshipment should be done in the presence of Central Excise officers. The specific problem relates to export of iron and steel products by M/s Steel Authority of India Ltd. (SAIL) and M/s Tata Iron and Steel Company (TISCO) to Nepal under Notification No. 51/94-CE (NT) dated 22.9.94.
2. The matter has been examined by the Board.
3. Under the provisions of Rule 13, where the goods are exported directly from a factory or any other approved premise, i.e. the Nepal Invoice is prepared in a factory or any other approved premise, under the provisions of Notification No. 61/94-CE(NT) dated 22.9.94, it is the responsibility of the exporter that the goods are exported within the stipulated period of limitation prescribed under the said notification, failing which the exporter is liable to pay the excise duty. In case of Notification No. 51/94 supra, the exporter has to submit proof of exports and remittance within 3 months from the date of clearance. There is no prohibition in respect of storing the goods end route the place of exports. Due to nature of the goods and special requirement of exports from Land Customs, i.e. non-availability of direct railway link, non-availability of transport permit or special arrangement of the buyer to have their own transportation from a particular point etc., it is essential that goods are unloaded and transferred from one vehicle/ railway flat to other vehicles. This requires a place for storage and transshipment. In any case, the exporter has to present the goods as per description given in Invoice issued under Notification No. 51/94-CE(NT) supra, whether in one lot or over a span of time in more than one lot. The Central Excise Department has no further role to play in this regard.
4. However, the following procedure is prescribed so that at any point, of time the Department can verify the goods stored in the stockyard or under transshipment with reference to an Invoice issued under Notification No. 51/94-CE(NT) supra (hereinafter referred to as the invoice) and that during transit checkings, the proper documents are available with each consignment/ vehicle
(1) The manufacturer-exporters or his agents or any exporter can establish transshipment stockyard at any place. No permission will be necessary.
(2) An intimation will be given to Commissioner of Central Excise with a copy to Assistant Commissioner and the Range Superintendent indicating the description of boundaries of the stockyard with ground plan, mode of inward and outward transportation, broad description of the goods to be handled, name and address of the manufacturers from whom the export goods will be received, export destination and the Land Customs from which the goods will be exported. The exporter will declare that any change in the details of the intimation will be communicated as and when the change takes place.
(3) The exporter will maintain a simple register containing the Invoice Number, contract details, description of goods, quantity received, quantity despatched with date, balance with date.
(4) The receipt and despatch (i.e. transshipment) will be done by the exporter himself and no specific permission will be required from the Central Excise office.
(5) The exporter will be fully responsible to present the goods at Land Customs as per the description and quantity given in the Invoice.
(6) Where individual invoices for each vehicle are not available, a challan should be prepared at the transshipment stockyard given the details of the goods on each vehicle and the Sl. No. of the Invoice issued by the manufacturer. A photocopy of the Invoice, duly signed by the authorised person of the manufacturer/ agent at the stockyard will also accompany each vehicle. The Land Customs will endorse the Invoice only after the full material as indicated in the Invoice is exported through the Land Customs.
Under Secretary (CX.6)