Circular No. 106/17/95- Central Excise
Subject: C.E. – Export of body built motor vehicles manufactured under bond under the New Export Procedure-Clarification regarding.
I am directed to refer to Board”s Circular No. 46/88-CX.6 dated 8.6.88 issued from F.No. 209/236/87-CX.6 dated 8.6.88 providing for execution of Bond by M/s. TELCO on behalf of their job workers for supply of chassis to them for building bony under erstwhile rule 191B and thereafter export of body built vehicles by M/s. TELCO from the premises of job workers.
2. A doubt has been raised as to whether the above relaxation shall be available in terms of new Rule 13(1)(b) which prescribes that Chapter X procedure should be followed in case a manufacturere-exporter sends the goods for further manufacture to a job worker before exporting the goods so worked upon.
3. The issue raised has been examined by the Board. The Board is of the view that the changes made in the Rules, do not in any way modify or substract the facility of execution of bond by a manufacturer- exporter if part of manufacture is completed by a job worker. It has also been decided that the earlier instructions shall apply mutatis-mutandis in respect of all commodities.
4. In view of above, in such cases manufacturer exporter shall execute 2 bonds, that is, one under Notification 47/94-CE(NT) dated 2nd september, 1994 for inbound manufacture of export goods and another one under Rule 13(1)(a) for in- bond export of goods. Both these bonds can be discharged/ credited only on receipt of proof of export of the goods worked upon or finished by the job worker.
