Notification No. 44/2001-C.E.(N.T.) Dated 26-06-2001

Procedures for removal of excisable intermediate goods without payment of duty by the manufacturer who is a holder of DEEC and Advance Licence.-  In exercise of the powers conferred by of sub-rule (3) read with sub-rule (2) of rule 19 of the Central Excise (No.2) Rules, 2001, the Central Board of Excise and Customs hereby notifies the conditions, safeguards and procedures for removal of excisable goods (hereinafter referred to as the” intermediate goods”) from the place of manufacture or warehouse [Earlier - from the place of manufacture ] without payment of duty for the purpose of use in the manufacture or processing of all articles (hereinafter referred to as the “resultant articles”) by a manufacturer who is an holder of a Duty Exemption Entitlement Certificate and an Advance Licence under the Duty Exemption Scheme (hereinafter referred to as ‘the ultimate exporter”) and their exportation out of India, ²[to any country except Bhutan]

1. the manufacturer of the intermediate goods holds an Advance Intermediate Licence or has applied for such licence to the Licensing Authority and has obtained an acknowledgement for the same, or as the case may be, has been permitted by the licensing authority or the Committee to manufacture for supply of such goods to the ultimate exporter;
   
   
2. the provisions of the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 shall be followed, mutatis mutandis;
   
   
3. the quantity of intermediate goods removed without payment of duty shall not exceed the duty exemption entitlement indicated in the said Certificate;
   
   
4. the intermediate goods shall be utilised by the ultimate exporter for manufacture of resultant articles to be exported or for use as replenishment of duty paid excisable goods of identical specifications and technical characteristics which have been used in the manufacture of resultant articles already exported in discharge of export obligations under a Duty Exemption Entitlement Certificate :
   
   Provided that the intermediate goods obtained for replenishment of duty paid excisable goods may be utilised for further production in the factory of the ultimate exporter or may be disposed of in such manner as may be specified by the Commissioner of Central Excise having jurisdiction over the factory of the ultimate exporter in terms of the provisions of Export and Import Policy notified under the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992);
   
   
5. the ultimate exporter makes necessary arrangements for facilitating drawl of samples and subjecting them to such tests as may be directed by the Commissioner of Central Excise having jurisdiction over the factory;
   
   
6. any waste or by-product arising from the process of manufacture undertaken by the ultimate exporter on the intermediate goods obtained under this notification shall be removed on payment of appropriate duty as if such waste is manufactured in the factory of the manufacturer.
   
   
7. that the export of resultant products made out of intermediate products, namely, nylon fibre, nylon yarn, nylon fabrics, polyester fibre, polyester yarn, polyester fabrics, stainless steel sheets, stainless steel strips, magnetic tapes, precious metals, metals clad with precious metals and articles thereof, be made only through -
   
   
   1. any of the sea ports at Kandla, Mumbai, Nhava Sheva, Cochin, Chennai, ³[Visakhapatnam, Mundra] ^Old[Visakhapatnam] and Kolkata; or
      
      
   2. any of the airports at Mumbai, Kolkata, Delhi, Chennai and Bangalore; or
      
      
   3. any of the internal container depots at Delhi and Bangalore;
   
   
   
8. the goods shall be exported following the procedures specified in the Ministry of Finance (Department of Revenue) notification no. 42/2001-Central Excise (N.T.), dated 26th June, 2001.
   
   
9. the ultimate exporter submits within thirty days of the expiry of the period specified in the Duty Exemption Entitlement Certificate or Advance Licence or within such extended period as may be permitted by the Licensing Authority or the Committee a detailed summary of the accounts maintained in the proforma specified under the Duty Exemption Entitlement Scheme, along with attested copies of the shipping bills, bills of lading and the Duty Exemption Entitlement Certificate with appropriate entries made by the officers of Customs.

¹[Provided that this procedure shall also be available for the supplies made by an Advance authorization holder to a manufacturer holding another Advance authorization, if such manufacturer, in turn, supplies the resultant products to an ultimate exporter in terms of para 8.3(c) of the Foreign Trade Policy, and the procedure, safeguards and conditions as prescribed in this notification shall apply mutatis-mutandis]

Refer: Circular No. 26/2017-Customs Dated 01/07/2017

1. Inserted vide Notification No. 23/2009-CE (NT) Dated 25/9/2009

2. Substituted vide Notification No. 28/2011-CE (NT) Dated 05/12/2011

3 Substituted vide Notification No. 16/2015 - Central Excise (N.T.) Dated 26/05/2015

as amended by [Notification No.32/2003-C.E.(N.T.) dt 9-4-2003, 23/2009-CE (NT) dt. 25/9/2009 and 28/2011-CE (NT) dt. 5/12/2011.]