29th November, 2001.
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject: Central Excise – Export of vehicles where body is built by job-workers on the chassis sent by the exporter – Procedure for furnishing of bonds by the exporter – regarding –
I am directed to say that doubts have arisen whether it is the body-builder who is required to furnish a bond for receipt of chassis for body-building thereon and export or the manufacturer of chassis, who sends the chassis for building body and exports the vehicles, may furnish the bond under the provisions of Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001. The facility of furnishing of bond by the exporter (and not the body-builder) was available under the erstwhile rule 13 as clarified by the Board by Circular No. 106/17/95-CX dated 2.3.1995.
2. The Board has examined the matter. It is clarified that the manufacturer of chassis may be allowed to furnish bond on behalf of the body-builders for building bodies on the chassis brought in the premises of the body-builders under the provisions of Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001.
3. For export of the finished goods (vehicles), the normal procedure specified under notification 42/2001-CE (NT) dated 26.6.2001 read with instructions contained in Central Excise Manual (First Edition) shall be followed.
4. The field formations may suitably be informed.
5. Receipt of this Circular may please be acknowledged.
6. Hindi version will follow.