Export of Goods Under Bond Under Rule 13 : The exporters have been permitted to export the excisable goods without the payment of Central Excise duty. Exporters are required to execute a bond with the Central Excise Authority equivalent to the amount of excise duty on the basis of their estimate. All the excisable items and the raw materials required for their production are covered under this scheme.
There are also provisions for export under bond on a regular basis. This is covered under Rule 14. For this purpose, Running Bond Account is maintained. In this case, the amount of bond is determined on the basis of the excise duty involved in export transaction over a period of time, generally regarded as transit period. Exporters are required to maintain a bond account of requisite value with the Central Excise Authority of the region, whenever any block transfer are made in favour of other central excise authority, debit shall be made in the account. Suitable debit shall also be made whenever exports are allowed against the bond.
On acceptance of the proof of export the bond account shall be credited to the extent the debit was made while permitting the exports. The running bond account shall be credited after the block transfer is returned by the other authentic.
There are six types of bonds. These are: B1 (Surity) and B1 (Security), B 1 (Gxeral Surity), and B 1 (General Security), B 16 (General Surety) and B 16(General Security). B 1 (Surety) and B1 (Security) bonds are to be executed for an individual excisable consignment. The exporters can execute consolidated E3 1 general bonds to cover a series of export from his factory or B16 bonds with the prescribed excise authority. Manufacturer exploiters who have executed B 16 bond are not required to execute separate bond to cover duty on goods exported without payment of duty.
Manufacturer-exporters other than those registered with EPCs and Central Excise, Export Houses, etc. are required to execute B- 1/B 16 bond with 100% security/bank guarantee. Merchant exporters other than registered exporters shall execute IS1 bond with 25% security bank guarantee.
Procedure: Packages in which goods to be exported are packed, shall be legibly marked in ink or oil colour or in such other durable manner as the Commissioner of Central Excise may allow. Exporters shall prepare Invoices, AR4lAR5 forms and execute the relevant bond for this purpose.
Removal of Goods without the examination of Central Excise Authority: As you have learnt, exporters are allowed to remove the goods without the examination of Central Excise Authority. Exporters shall prepare AR4/AR5 Fonts in sixtuplicate. They will deliver triplicate, quadruplicate, quite duplicate and sixtuplicate copies of AR4IAR5 forms to the Jurisdictional Superintendent of Central Excise. The forms should be submitted within twenty four hours of the removal of goods. The exporters shall retain the original and duplicate copies for presenting to the customs officer at the point of export along with the consignment. The Jurisdictional Superintendent of Central Excise shall examine the consignment and relevant information. If he is satisfied, he would allow the clearance of goods. He would send the triplicate copy of the authority before which the bond is executed. He would send quadruplicate copy to the Chief Accounts Officer and retain the quintuplicate copy for his record. Sixtuplicate copy will be returned to the exporter.
Removal of goods after the examination of Central Excise Authority: In this case the exporter shall submit AR4/AR5 forms in sixtuplicate to the Jurisdictional Superintendent of Central Excise. Exporters required submitting the application forms twenty four hours before the removal of goods. The Excise Authority shall examine the goods and relevant information. He may draw the samples in triplicate wherever necessary. Two sets of sealed sample will be returned to the exporter for delivering to the customs officer at the point of export. The third set will be retained for his record. If the Excise Officer is satisfied, he would allow the clearance of goods. He shall return original and duplicate copies of AR41 AR5 forms to the exporter for presenting to the Customs Officer at the point of export. The sixtuplicate copy shall be given to the exporter in a sealed cover for handing over to the Customs Officer. The triplicate copy shall be sent to the authority with whom the exporters
have signed the bond. Quadruplicate copy will be sent to the Chief Accounts Officer at the headquarter. Quintuplicate copy shall be retained for records.
The exporters shall present original, duplicate and sixtuplicate copies of AR4/ARS forms to the customs authority at the point of export along with the consignment. The customs officer will check the consignment and verify the relevant information. If he is satisfied, he would clear the goods for shipment. After the shipment of the goods the customs officer would make endorsementd on original, duplicate and sixtuplicate copies of AR4lAR5 forms. He would return original and sixtuplicate copies to exporters. The duplicate copy will be sent to the authority before whom the bond was executed.
Documents: Following documents shall be filed by the exporter as a proof of export of goods :
i) Original copy of AR4lAR5 forms.
ii) Duplicate copy of AR4lAR5 forms in a sealed cover received from Customs Officer.
iii) Duly attested copy of Bill of Lading.
iv) Duly attested copy of Shipping Bill (Export Promotion Copy).