Payment of central excise duty

[Hareesh DM]

Dear Sir, My query is about removal of excisable goods as free trade samples for export to the customer trail and inspection purpose. In the normal way of export under Rule 18 is  ARE-1 Procedure, after custom examination  ARE-1 1st and 2nd copy will come back to us. Then we can submit the same as 'Proof of shipment' to the range. If we sent small Quantity as free trade samples through courier mode, we can't raise  ARE-1, because, here there is no foreign exchange involvement. So that customs authority will not accept the  ARE-1. So that how we pay the central excise duty in this case?.

[Surender Gupta]

If you are unable to meet out the conditions specified in Rule 19 of Central Excise Rules, 2002 and notification issued thereunder, you have to pay excise duty on samples by issuing simple invoice issued under rule 11.

AI Summary

Payment of central excise duty on export samples requires invoice payment when export relief conditions are unmet. Where courier exports of free trade samples cannot satisfy the conditions of Rule 19 and ARE-1 proof is unavailable because no foreign exchange is involved, excise duty must be paid by issuing a simple invoice under Rule 11; absence of export-relief compliance makes the removal dutiable and requires invoice-based duty payment rather than ARE-1 proof.