SELF SEALING TO NEPAL

[Guest]

What is the procedure for Self sealing to Nepal

[Rajagopalan Ranganathan]

Sir.

With effect from 1.3.2012 exports to Nepal was mad on par with exports to other countries vide Notification No. 19/2004-CE(NT) dated 6.9.2004 as amended by Notification No. 24/2011-CE(NT) dated 5.12.2011 issued under rule 18 of Central Excise Rules, 2002 and under bond/LUT vide Notification No. 42/2001-CE(NT) dated 26.6.2001 [as amended by Notification No. 26/2011-CE(NT) dated 5.12.2011] in terms of Rule 19 of Central Excise Rules, 2002. Therefore the procedure applicable to exports to other countries is applicable to exports to Nepal. This is confirmed in-

Circular No. 958/1/2012-CX

F.No.201/03/2010-CX.6

Ministry of Finance

Department of Revenue

Central Board of Excise and Customs

New Delhi, the 13^th January,2012

To

All Chief Commissioners of Central Excise

All Chief Commissioners of Customs and Central Excise

All Chief Commissioners of LTU

Sub: Revised Treaty of Trade between India and Nepal.

Sir/Madam,

Pursuant to Revised Treaty of Trade between Government of India and Government of Nepal, exports to Nepal have been put at par with exports to other countries (except Bhutan). In this regard, six Notification Nos. 24/2011-Central Excise(N.T),26/2011-Central Excise(N.T),27/2011-Central Excise(N.T),28/2011-Central Excise(N.T), and 29/2011-Central Excise(N.T), all dated 5.12.2011 have been issued to amend earlier Notification Nos 19/2004-Central Excise(N.T) dated 6.09.2004,42/2001-Central Excise(N.T) dated 26.06.2001,43/2001CE(N.T) dated 26.06.2001,44/2001-Central Excise(N.T) dated 26.06.2001 and 45/2001-Central Excise(N.T) dated 26.06.2001, respectively. Notification no. 25/2011-Central Excise(N.T) dated 5.12.2011has rescinded the earlier Notification No. 20/2004-Central Excise(N.T) dated 6.09.2004. These amendments abolish the existing DRP for exports to Nepal and puts export to Nepal at par with exports to other countries (except Bhutan). All these notifications have been made effective from 1^st March, 2012.

2. Difficulties anticipated/ faced, if any in implementation of the revised procedure, may be brought to the notice of the Board.

4. Field Formations and Trade may also be suitably informed.

5. Hindi version will follow.

Yours faithfully,

(V.P. Singh)

Under Secretary(CX.6)

[YAGAY andSUN]

Dear Ranjit,

In addition to above reply, you would have to also apply for FSP i.e. factory stuffing permission from the Customs Department if you intend to stuff goods in a container.

Regards,

SameerMalhotra- Consultant

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Mahir S]

Yes sir, the replies furnished above are correct.

Now same procedure for export to Nepal as carried out in respect of export of goods to other countries.

[Guest]

Is there any intimation is required prior to export to excise personnel

[Mahir S]

Sir,

No prior intimation is required to be given to excise department each time before export of goods under self sealing. However, a one time letter should be submitted in advance that the factory shall be clearing and exporting the goods under self sealing.

The Triplicate (Third Copy) and Quadruplicate (fourth Copy) of ARE -1 are required to be submitted to the Superintendent or Inspector of Central Excise having jurisdiction over the Factory or Warehouse within twenty four hours of removal of the goods under self sealing.

[Guest]

Hello,

Can the manufacturer exporter having trading activity as well, can export traded goods to Nepal, if yes is the paper work would remain same ? like Invoice ARE1 etc...

Please advice.

thank you,

Mitesh

[Rajagopalan Ranganathan]

Sir,

If you export goods as trader, then you have to execute a bond in Form B-1. The bond is to be executed with Maritime Commissioner if you are located in port/Airport cities. If not you have to execute the bond with your jurisdictional Central Excise Officer. Other procedures remain the same.

AI Summary

Self sealing exports to Nepal now follow standard export procedures, including bond/LUT, ARE 1 submission, and FSP where applicable. Exports to Nepal are treated as exports to other countries and must follow the same procedures, including export under bond or LUT and use of self sealing. Container exports require Factory Stuffing Permission from Customs. Exporters using self sealing must submit a one time advance letter to excise and deliver the Triplicate and Quadruplicate copies of ARE 1 to the local Superintendent/Inspector of Central Excise within the prescribed post removal period. Traders exporting (not as manufacturers) must execute a Form B 1 bond with the Maritime Commissioner in port/airport locations or with the jurisdictional Central Excise Officer.