APPROVAL FOR EXPORT WITHOUT PAYMENT OF EXCISE DUTY (Rule 19)

[CS RAHUL AGARWAL]

Dear Experts,

I just want to know whether we need to obtain approval and execute bond everytime we export any other product for six months OR if only one single approval & bond is sufficient for exporting all other articles as per for Rule 19 read with 42/2001 ? I mean we are already having approval for one item we manufacture but now we wish to export other items also, so do we need to obtain approval for new item again ??

please provide valuable suggestions.

[MUKUND THAKKAR]

Sir,

please refer your From UT-1( letter of under taking) acceptance memo which has given by your division office, it is not bound for any specific item for export, you can export any item which you have manufacture. so need not take any bond or letter of undertaking item wise.

[CS RAHUL AGARWAL]

Thank you so much mukund ji. It was of great help. Thanks a ton :)

[PAWAN KUMAR]

Dear Sir,

An manufacturer exporter can export their goods either under rebate claim or without payment of duty under bond/LUT.

The Bond is B-1 bond which is executed one time and it covers all your excisable goods. Likewise LUT (Letter of undertaking-UT-1) can be executed with the department which also covers all your excisable goods meant for export.

[CS RAHUL AGARWAL]

Thank you pawan ji so much for your valuable advise. thanks a lot

[Binu Karuthedath]

Dear Sir

if you have assessee you can exicute LUT to your concerned Range office . if you have merchant exporter you can exicute B1 bond with 25% of the bond amount as security deposit .if u have any RCMC the said 25% is exempted

AI Summary

Export without payment of excise duty: one LUT or B-1 bond covers all excisable goods for export, subject to security. A single Letter of Undertaking (UT-1) or a single B-1 bond suffices to export without payment of excise duty and is not required item-wise; the instrument covers all excisable goods manufactured by the exporter. Merchant exporters executing a B-1 bond normally must furnish a security deposit, with that security requirement waived if the exporter holds an RCMC. Exports may alternatively be made under rebate claims instead of under bond/LUT.