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Former Member

Excise in Exports.

Hi,

We have export Sales in our organisation. My question is how excise will vary in exports.? wt is BOND and ARE1. Give briefly overview on excise in exports and when it is applicable?

regards,

jyothi.

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2 Answers

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    Former Member
    Mar 11, 2008 at 04:52 AM

    Hi Jothi,

    Excise bond:

    A document, in India, that effectively licenses a manufacturing plant to remove goods from its premises without paying basic excise duty, on condition that the goods are then exported.

    An excise bond covers a fixed amount of excise duty. The excise duty of the goods exported under bond cannot exceed the bond value.

    ARE document

    A document, in India, that accompanies exports and deemed exports. The documents ensure that you do not have to pay excise duty on these transactions.

    There are two types of ARE documents, ARE-1 and ARE-3.

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    Former Member
    Mar 11, 2008 at 05:23 AM

    Hi,

    Basic thumb rule in all Export process are Excise is exempted. Like in domestic, exports also there are couple of scenarios which follow depends on the company to company-

    1. Exports under Bond

    2. Exports under Rebate Claim

    3. Exports under Letter of Understanding

    4. Deemed Export

    5. Export under CT1 or CT3 License.

    In the above all except the rebate claim, excise dute is exempted, when it comes to Bond in general definition its a legal document which includes money limit and for all exports if routed through BOND then all the sales orders should attach to BOND. After attaching the Bond to sales order, system reduce the duty value from the BOND amount for every Export Excise Invoice.

    ARE1: This is used in all export process except deemed export, this is used a annexture for exporting the goods from the port. This ARE1 consist of EI Number, materail, quantity and the duty value of the material. This ARE1 is submitted by Excise department of the company to the Excise authorities for Excise Clearance from the Port.

    Rewards if it helps,

    Regards

    Goutham

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