export to nepal letter of undertaking required for ssi exempted unit.

[Anil Jangid]

My client firm has a turnover less than 1.25 crore so it is not required to get excise registeration. Now they are exporting goods to nepal. What is the require form and procedure in this case? Shall i have file letter of undertaking in this case?

[Rajagopalan Ranganathan]

Sir,

Notification No. 42/2001-CE (NT) dated 26.6.2001 prescribes the conditions and procedures for exporting excisable goods without payment of duty under bond or letter of undertaking. However this notification stipulates in para 1 (iv) that export of excisable goods which are chargeable to nil rate of duty or are wholly exempted from payment of duty, other than goods cleared by a hundred per cent export-oriented undertaking, shall not be allowed under this notification. Therefore since you are enjoying the SSI exemption you need not execute a letter of undertaking. However you have to clear the excisable goods for export under form ARE-1 and for the procedure to be followed please refer to above referred Notification.

[KASTURI SETHI]

Just for information for exports to Nepal

Exports to Nepal now at par with exports to other countries (except Bhutan) - DRP to Nepal withdrawn

Circular No. 958/1/2012-CX., dated 13-1-2012

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

Government of India

Ministry of Finance (Department of Revenue)

Central Board of Excise & Customs, New Delhi

Subject : Revised Treaty of Trade between India and Nepal.

AI Summary

Letter of undertaking exemption for SSI exporters exporting to Nepal; clear excisable goods under ARE-1 per notification. SSI-exempt exporters are not required to furnish a letter of undertaking for exports of nil-rated or wholly exempt excisable goods; such consignments must be cleared for export on form ARE-1 and processed in accordance with the procedural requirements of the export-under-bond/letter-of-undertaking framework. Exports to Nepal are treated similarly to other foreign exports under the revised trade arrangements.