Circular No.676/67/2002-CX
F.No.209/30/2001-CX-6
Government of India
Ministry of
Finance & Company Affairs
Department of Revenue
Central Board of
Excise & Customs
Subject: Central Excise- Export Warehousing –problems-reg.
I am directed to refer to
Board’s Circular No.581/18/2001-CX dated 29.6.2001 relating to export
warehousing procedure and to say that representations have been received from
trade seeking clarifications and suitable guidelines on the following
points:
i)
Procedure for export to Nepal from export warehouse;
ii)
Direct export of goods after further processing by merchant
exporters
2.
Regarding (i) above, it has been represented that the said Circular does
not prescribe any procedure for export directly from warehouse to Nepal when the
transaction is made in Indian rupees as the said Circular states that the
procedure for clearance from warehouse shall be governed by Notification
No.42/2001-CE (NT) dated 26.6.2001 which does not apply to exports to Nepal.
Regarding (ii) above, it has been represented that presently, there is no
provision of clearance of goods for exports directly from the premises of the
job worker in the case of merchant exporters.
3.
The above issues have been examined. Regarding (i) above, Board has
observed that if the goods are cleared for export on payment of duty, same is
allowed in respect of all countries subject to following the procedure laid down
in the relevant notification. Further, the facility of clearances (for export)
from export warehouse to Nepal on payment of duty is also available when the
transaction is in Indian Rupees.
Normally, such removals would be treated as domestic clearances and
subject to payment of interest as per paragraph 10 of the said Circular.
However, since the goods are ultimately exported and the rebate of duty is given
to HMG Nepal, Board has decided to relax this condition and allow the exporter
to clear the goods on payment of duty without interest. Accordingly, it is
clarified that exports may be allowed directly from the export warehouses to
Nepal on payment of duty even when the transactions are done in Indian Rupees
and no interest is liable to be paid on the duty paid on such export
transactions.
4.
Regarding (ii) above, Board observes that denial of facility of clearance
of goods directly from the premises of job worker in the case of merchant
exporters increases the cost of transactions. In this connection, as in terms of
rule 4 (6) of Cenvat Credit Rules, 2002, the clearance of finished goods for
export directly from the job workers’ premises has already been provided, Board
is of the view that this facility can be extended to merchant exporters who
procure goods for export from the export warehouse on the strength of CT-I
certificate furnished by the exporter. Accordingly, it is clarified that goods
can be cleared directly from the job workers’ premises to export warehouses of
merchant exporters for export subject to fulfillment of procedure prescribed by
the Commissioner.
5. Trade
and field formations may be informed suitably.
6.
Receipt of this Circular may be acknowledged.
7. Hindi
version follows.
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