Sunil Kumar G

Sunil Kumar GBrief 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

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27 responses to “Rebate of Duty Paid By Merchant Exporter”

  1. shashi Kumar says:


    If a merchant exporter registered with Central excise of his range as dealer, then can he claim rebate from his range with all necessary docs like duty paid excise invoice of supplier, disclaimer certificate, copy of SB, ARE1 original, duplicate and triplicate and BRC.

  2. K Purushothaman says:

    is a merchant exporter having IGST registration in New Delhi where he is having office only and exporting goods from a manufacturer in another State, material container stuffed at the factory with sgs inspection seal, need a separate IGST registrations there? Or he can export the goods under manufaturer’s IGST number without paying taxes?

  3. Laxman. mangtani says:

    I am merchant Exporter in Mumbai Maharashtra I had purchased goods from Gujarati for exports under ARE & H form can I export goods on 4 July as usual or is their will be problem for my company / or any tax liablty. Please send me replay

  4. RADHA says:

    dear sir,
    we are merchant exporter, we have done our 1st shipment and paid the exercise duty, how can we claim rebate on exercise duty without ARE-1 form .we have form c,shipping bill original,exercise invoice no .please guide me how to obtain rebate on exercise duty and time period .
    Thanks and regards,

  5. RADHA says:

    dear sir,
    we started our merchant export firm this year.during our 1st shipment which we made on march 2017 ,we paid exercise duty and we have shipping bill original,exercise invoice and form c but we don’t have ARE-1 FORM HOW CAN WE APPLY FOR CLAIMING REBATE ON EXERCISE DUTY?

  6. MANOJ MISHRA says:

    Hello Sir,

    We are a merchant exporter of Industrial Chemicals. We are buying chemicals directly from the manufacturer in India under ARE-1/CT-1 (for Central Excise) & Form “H” (for Sales). Can we claim Duty Drawback against our Export ?


    Manoj Mishra

  7. umesh joshi says:

    Sir, we are registered dealer with excise. We had procured, from manufacturer, a product for local sale therefore procured it by paying duty on it (charged in the purchase bill). Later the same was exported. Is there any procedure to claim refund of duty levied by the manufacturer?

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