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Unit 12: Export Incentives Schemes

5. Original copy of duly ARE-I/ARE-II duly endorsed by the Customs Officer certifying the Notes
export of the consignment
6. A disclaimer certificate in case where the claimant is other than the exporter.

The claim needs to be filed within six months i.e. time prescribed under Section 11B of Central
Excises and Salt Act.

The Maritime Collector or Asstt. Collector, Central Excise would verify and compare the original
copy of ARE-I/ARE-II received from exporter with the duplicate copy of ARE-I/ARE-II received
from Customs Officer and triplicate copy of ARE-I/ARE-II received from Range Supdt. Once
satisfied that the claim is in order, he will sanction the rebate.

The rebate sanctioning authority must point out deficiency, if any, in the claim within 15 days of
lodging the same and ask the exporter to rectify and dispose off the claim within a period of two
months. If the exporter does not receive the rebate amount within three months of the date of his
filing the claim, he is entitled to interest @ 20% p.a. for the time between the expiry of three
months and the date of receipt of the amount.
Export under Bond- Under Rule 19 of Central Excise Rules, an exporter is permitted to
remove excisable goods for export without payment of excise duty by executing a bond
(legal undertaking) in favour of the excise authorities for the amount of the excise duty
payable. This bond needs to be duly supported by an appropriate Bank Guarantee. This
will ensure safeguard for the excise department and put the ultimate onus on the exporter
in case he fails to export the excisable goods within the permitted time. The liability of the
exporter under this bond stands until he exports the goods and submits proof of the same
to the excise authorities. On satisfactory submission of the proof of exports, his liability
under the bond gets discharged.
Here, there are three possibilities for obtaining excise clearance and executing the legal
undertaking. Goods can be examined at the exporter’s premises. The exporter can remove goods
under self-certification. The third option is to get the excise examination and clearance done at
the port/airport.
Normally, the goods, for which the bond is executed, must be exported within a period of six
months from the date of excise clearance.

!
Caution However, in certain special cases the Central Excise Authorities may grant an
extension against application made by the exporter seeking such extension.

12.4 Duty Drawback

Duty drawback is an incentive given to the exporters of different categories of goods under the
“Customs and Central Excise Duty Drawback Rules, 1995”. The duty drawback scheme is
administered by the Directorate of Duty Drawback in the Ministry of Finance, Government of
India.
The basic purpose of drawback is to protect the exports from the burden of indirect taxes like
excise and import duty. Drawback is a rebate of duties chargeable on any excisable material and
on any imported input used in the goods manufactured and exported from India. Thus, drawback
has two components – excise portion and customs portion. Drawback is an internationally
practiced concept and is widely used to encourage exports.

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