Sunil Kumar G
Brief Summary: Notification No. 19/2004 –CE (NT) dated 6.09.2004 prescribes the conditions and procedure relating to export under claim of rebate. This notification is applicable for Manufacturer exporter as well as Merchant exporter. A Merchant Exporter can export with payment of duty and can claim rebate on duty paid on export of goods under this notification.
“Merchant Exporter” means a person engaged in trading activity and exporting or intending to export goods. Merchant Exporter can export the excisable goods either directly from the premises of the manufacturer, with or without sealing of the export consignments, or through his premises under claim for rebate or under bond.
Where exports are by Merchant Exporter, a Disclaimer Certificate in favour of the Exporter should be taken on each copy of ARE-1. According to the Circular 508/04/2000-CX dated 14/01/2000, it is clarified that “there is no bar on the merchant exporters to file rebate claim and with the Assistant Deputy Commissioner (Divisional Officer) having jurisdiction over the factory of manufacture of said goods and receive the rebate, provided the manufacturer gives the ‘disclaimer’ certificate. The AR-4 (ARE-1/ARE-2) should be generated in the factory of said goods and duly signed both by the manufacturer and the merchant-exporter.” The Merchant exporter can claim rebate under Notification No. 19/2004.
Presentation of claim for rebate to Central Excise
(i) Claim of the rebate of duty paid on all excisable goods shall be lodged along with original copy of the application (in duplicate) to the Assistant/Deputy Commissioner of Central Excise having jurisdiction over the factory of manufacture or warehouse or, as the case may be, the Maritime Commissioner;
(ii) The Assistant/Deputy Commissioner of Central Excise having jurisdiction over the factory of manufacture or warehouse or, as the case may be, Maritime Commissioner of Central Excise shall compare the duplicate copy of application received from the officer of customs with the original copy received from the exporter and with the triplicate copy received from the Central Excise Officer and if satisfied that the claim is in order, he shall sanction the rebate either in whole or in part.
(iii) Documentation: List of documents required to be filed with rebate claim
1) A request on the letterhead of the exporter containing claim of rebate, ARE-1 numbers and dates, corresponding invoice numbers and dates, amount of rebate on each ARE-1 and its calculations.
2) Form C (annexure B)
3) Original copy of ARE-1.
4) Invoice issued under Rule 11 of CER, 2002
5) Self attested copy of Shipping Bill (EP copy) and Bill of lading/ Airway Bill.
6) Proof of duty payment.
7) Disclaimer certificate from the manufacturer
8) Bank Realisation Certificate (Optional)
9) Mate Receipt (optional)
10) Any other document in support of the refund claim.
Conditions and limitations
(a) that the excisable goods shall be exported after payment of duty, directly from a factory or warehouse,
(b) the excisable goods shall be exported within six months from the date on which they were cleared for export,
(c) that the market price of the excisable goods at the time of exportation is not less than the amount of rebate of duty claimed;
(d) that the amount of rebate of duty admissible is not less than five hundred rupees;
(e) that the rebate of duty paid on those excisable goods, export of which is prohibited under any law for the time being in force, shall not be made.
(xvi) The exporter shall use the quadruplicate copy for the purposes of claiming any other export incentive.
Duty Drawback of duty paid goods procured from Market and Export
Notification No. 19/2004 is applicable only for those merchant exporter exported goods directly from the premises of the manufacturer or warehouse of the manufacturer with payment of duty. Thus merchant exporters who purchase goods from the local market for export shall be entitled to full rate of duty drawback (including the excise portion). However, such merchant exporters shall have to declare at the time of export, the name and address of the trader from whom they have purchased the goods. They shall also have to declare that no rebate (input rebate and also the final product rebate) shall be taken against the Shipping bills under which they are exporting the goods. The merchant exporters who purchase goods from traders may therefore furnish the declaration, at the time of export, in the format as mentioned below (The Circular No. 16/2009- Customs is issued in supersession of para (vi) of Circular No. 64/98-Cus dated 01.09.1998.)
Declaration to be submitted by merchant exporters who purchase goods from traders for export
1. Shipping bill no. and date
2. Description of goods
3. Export Invoice no. and date
4. Name and complete address of the trader from whom export goods have been purchased.
I, ______________________________ _________________________, hereby declare that I am not the manufacturer of the export goods and am not registered with central excise. I have purchased these goods from a trader who is also not registered with the central excise. I declare that no rebate (input rebate or/and final product rebate) shall be taken against the export (s) made against this shipping bill.
Merchant exporter’s signature and seal
The claim for rebate should be filed the time limit stipulated under Section 11B of the Central Excise Act, 1944