"Manufacturer Exporter" means a person who manufactures goods and exports or intends to export such goods. "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.
Central Excise provisions for Export including those by Merchant Exporters.
It provides for grant of rebate of duty paid on excisable goods and 'duty paid on materials used in the manufacturer of goods when such goods are exported' outside India subject to notified conditions and safeguards. The Commissioner of Central Excise or as the case may be, the Maritime Commissioner of Central Excise has been empowered to relax any of the conditions laid down in any notifications issued under this Rule while considering the rebate claim. The definitions of the terms "manufacturer" and "materials" used in this Rule have been given wide connotation under the 'explanation' appended to the said Rule.
It provides for export of goods in bond without payment of duty from a factory of manufacture or a warehouse and use of non-dutiable materials in the production of export goods. The Central Government has issued relevant notifications and prescribed certain safeguards, conditions and limitations as regards the class or description of the goods or description of materials used in the manufacture thereof, distribution, mode of transport and other allied matters as specified in the notification. Notification No.47/94-CE (NT) dated 22.9.1994 as corrected by corrigendum Notification No.781 (E) dated 26.10.1994, as amended and Notification No.48/94-CE (NT) dated 22.9.94 as corrected by corrigendum Notification GSR No.742 (E) dated 6.10.94 and Notification GSR No.781 (E) dated 26.10.94, as amended, are some of the Notifications issued under Rule 13.
Rules l85, 187, 187A, 187B and 189 prescribe the detailed procedure for export of excisable goods. The scheme of Self Removal procedure has also been introduced for export (except for the goods under physical control). It is now the option of the assessee either to clear the goods from the factory or the warehouse under AR.4 and intimate the fact of such clearance to the Range Superintendent or request the officer to examine and seal the goods and export the goods under official supervision.
At present there are 7 Maritime Commissioners of Central Excise viz. Mumbai, Calcutta, Madras, Panaji, Visakhapattanm, Cochin and Kandla. In fact, the Commissioners of Central Excise have been designated as "Maritime Commissioners".
Running Bond Account
Every Central Excise authority before whom a consolidated B1 general bond is executed shall maintain this account in the prescribed proforma. Suitable debit shall be made in the account whenever exports are allowed against the bond. Whenever any block transfer is made in favour of other Central Excise authority (example, another Maritime Commissioner), debit shall be made in this account on acceptance of the proof of export, the bond account shall be credited to the extent of the debit. The account shall also be credited after the block transfer is returned by the other authority.
Export by Merchant Exporters under bond for rebate of duty
Where exports are by Merchant Exporter, a Disclaimer Certificate in favour of the Exporter should be taken on each copy of AR 4. The procedure under the Board's Circular No. 81/81/94-CX dated 2S.11.1994 shall, mutatis mutandis, apply to such exports by Merchant Exporters.
Export by Merchant Exporters under bond without payment of duty
The procedure for export under Bond as laid down in Board's circular No.87/87/94-CX.6 dated 26.12.94 may be referred to:
Merchant Exporter can export excisable goods under bond executed by manufacturer. In such circumstances, the manufacturer who has executed bond would be responsible for discharging all the liabilities antler Central Excise Law and Procedure. In such cases, application in form AR-4 will be in the name of the manufacturer, who executes the bond. Once the manufacturer permits the bond executed by him for exports by Merchant Exporters, it would be manufacturer's responsibility for accountal of export goods.
Merchant Exporter himself can also execute a bond for export. Where he desires to export excisable goods manufactured in a factory or number of factories, he can execute a B.1 bond to cover a particular consignment or a consolidated B.1 general bond to cover a series of export consignment frown the same factory, before the Assistant/ Deputy Commissioner of Central Excise having jurisdiction over the factory.
Where the export is front a port, airport or post office falling within the jurisdiction of Maritime Commissioner of Central, the option is available to the Merchant Exporter to execute a particular bond or consolidated bond before the concerned Maritime Commissioner. In case of a particular B.1 bond, he should obtain an attested copy of the bond executed before the Maritime Commissioner and produce the same at the time of presentation of AR.4 to the Superintendent, Central Excise. Where consolidated B.1 general bond is executed, he shall inform Maritime Commissioner of his intention to export the goods and obtain a Certificate of provisional debit in the Running Bond Account. This Certificate will have to be produced by him before the Superintendent of Central Excise at the time of presentation of AR.4 for signature. In above situations, the exports are expected to be made through the Port of the Maritime Commissioner before whom the bond is executed. The relevant AR.4 has to be signed by both the Merchant Exporter and actual manufacturer.
Block Transfer of Bond Account
In case of Merchant Exporters, they can execute B.1 general bond with a particular Maritime Commissioner. However, the goods may have to be exported from Port/Airport/Post Office under the jurisdiction of another Maritime Commissioner.
In such cases, Merchant Exporter has to obtain "Block Transfer of Credit in Running Bond Account" in favour of Maritime Commissioner having jurisdiction over the Port/Airport/Post Office from which the goods are being exported.
Intimation of such Block Transfer will also be given by Maritime Commissioner to Superintendent of Central Excise having jurisdiction over the factory/warehouse. Similarly, if the goods are to be exported from the Port/Airport/Post Office which is not under the jurisdiction of any Maritime Commissioner, the Merchant Exporter will have to obtain "Block Transfer of Credit" in "Running Bond Account" in favour of the Assistant/Deputy Commissioner having jurisdiction over the factory of manufacturer.
Once the Block Transfer Credit is made, it will be treated as if Merchant Exporter has executed bond for that amount. Proof of export will have to be submitted to the authority (i.e. Maritime Commissioner/Assistant Commissioner) in whose favour the "Block Transfer Credit" has been made and they will keep control over the bond monitoring proof of export. However, if the goods are not actually exported, action for recovery will have to be initiated by the Maritime Commissioner of Central Excise before whom bond has been executed.