B1 Bond Execution For Exports

01.

Self-removal Procedure

The exporters are being allowed to take clearances for export without the presence & examination of export goods by the Central Excise Officer. However this facility shall not be available to export of excisable commodities under physical control.

02.

AR4

It is required to be filed by exporters in all the situations namely:

• Export Clearances on their own without examination by the Central Excise Officer whether under claim for rebate or under bond.
• Export Clearances under Central excise seal whether under claim for rebate or under bond.

03.

Bond with Maritime Collector or Jurisdictional Assistant Collector of Central Excise

Even where the export is from any of the port, airport or post office falling within the jurisdiction of Maritime Collector of Central Excise, there is option to execute the bond before such Maritime Collector or the Jurisdictional Assistant Collector of Central Excise. Exporters are required to indicate on the AR4 the complete postal address of the authority before whom the bond is executed & to whom the documents are to be submitted for admission of proof of export.

04.

Bonds

The first step that is required to be taken for clearance of excisable goods, without payment of Excise Duty for export from the factory or the warehouse or any other premises as approved is the execution of the bond for due dispatch of goods. The bond can be executed either by manufacturer or merchant exporter.

05.

Types of Bonds for Export

There are six types of bonds for due despatch of goods for export:

• B1 (Security)
• B1 (Surety)
• B1 (General Surety)
• B1 (General Security)
• B16 (General Surety)
• B16 (General Security)

06.

Special facilities to certain categories of Exporters

Following categories of exporters need not furnish any Bank Guarantee or Cash Guarantee or Cash Security for the export bond. Bond with Surety would suffice in these cases.

• Super Star Trading Houses
• Star Trading Houses
• Trading Houses
• Export Houses
• Registered Exporters (registered with relevant Export Promotion Council)

07.

Extent of Security or Bank Guarantee

Other manufacturer exporters may execute B-1/ B-16 bond with 10% security/ bank guarantee. Merchant exporters shall execute B-1 bond with 25% security/ bank guarantee.

08.

Bond to be executed by Manufacturer Exporters

Manufacturers that export on their own account (Manufacturer Exporters) who manufacture dutiable excisable goods & desiring to export without payment of Excise Duty (under bond) can execute either a particular B-1 bond or a consolidated B-1 general bond, or B-16 (General Security or General Surety) with the jurisdictional Assistant Collector of Central Excise.

09.

Export by Merchant Exporters under Bond Executed by manufacturers

Merchant exporters are also permitted to export excisable goods under Bonds executed by manufacturers. In such circumstances, for purposes of complying with Central Excise Law & Procedures the manufacturer who has executed the Bond would be responsible for discharging all the liabilities under the said provisions.

10.

Bonds to be executed by Merchant Exporters

Where a merchant exporter desires to export excisable goods manufactured in a factory or number of factories, he can execute a B-1 bond to cover a particular consignment or a consolidated B-1 general bond, to cover series of export consignments from the same factory, before the Assistant Collector of Central Excise having jurisdiction over the factory.