Introduction, Export to Nepal, a different procedure has to be followed considering that the rebate is granted to the His Majesty’s Government of Nepal based on Indo-Nepal Treaty Conditions of export.

Introduction
Conditions of export
Nepal Invoice
Procedure for export to Nepal
Procedure at the land customs station
Procedure to be followed by the Directorate General of Inspection

Part-II
Export to Nepal or Bhutan

1. Introduction
   
   1.1 For export to Nepal, a different procedure has to be followed considering that the rebate is granted to the His Majesty’s Government of Nepal based on Indo-Nepal Treaty. Currently, the procedure is specified only for exports through specified Land Customs Stations. There is no rebate procedure for Bhutan.
   
2. Conditions of export
   
   2.1 The conditions of export are similar to export to other countries. For clarity, these are explained below: -
   1. It is essential that the excisable goods shall be exported after payment of duty, directly from a factory or warehouse. The condition of "payment of duty" is satisfied once the exporter records the details of removals in the Daily Stock Account maintained under rule 10 of the Central Excise (No.2) Rules, 2001 (hereinafter referred to as the said Rules), whereas the duty may be discharged in the manner specified under rule 8 of the said Rules, i.e. on fortnightly or monthly basis, as the case may be.
   2. In certain cases, the CBEC may issue instructions/procedures for exporting the duty paid goods from a place other than the factory or the warehouse.
   3. The excisable goods shall be exported within six months from the date on which they were cleared for export from the factory of manufacture or warehouse. This date will be indicated on the Nepal Invoice issued for the purpose. However, the Commissioner of Central Excise has powers to extend this period, for reasons to be recorded in writing in any particular case. The exporter will be required to submit written request to the Commissioner specifying the reasons why they could not export within the stipulated six months’ period. The Commissioner should give his decision within seven working days of the receipt of the request. It should also be noted that such permissions should not given in a routine manner.
   4. The market price of the excisable goods at the time of exportation should not be less than the amount of rebate of duty claimed.
   5. The rebate claim will be admissible only if the amount of rebate of duty admissible is five hundred rupees or more.
   6. The rebate of duty paid on those excisable goods export of which is prohibited under any law for the time being in force, shall not be made.
   7. The whole or that part of duty as is granted as rebate to the exporter is not allowed as rebate to His Majesty's Government of Nepal.
   8. The goods can only be exported by land through any of the following land customs stations, namely, Sukhiapokhri, Panitanki, Jogbani, Jayanagar, Bairgania, Bhimnagar, Bitamore (Sursand), Raxaul, Sonauli, Barhni, Nepalganj Road, Shohratgar (Khunwa), Jarwa, Katarniaghat, Gauriphanta, Banbasa, Jhulaghat, Dharchula, Naxalbari, Galgalia, Kunauli, Sonabarsa, Tikonia, or such other check-post as may be specified by the CBEC.
      
3. Nepal Invoice
   
   3.1 The Format of ‘Nepal Invoice’ has been specified in the notification no. 40/2001-Central Excise (N.T.) dated 26.6.2001 (Annexure-21It is similar to the erstwhile form except minor modifications such as incorporating "duty paid or payable" in place of "duty paid" so as to attune it with the Fortnightly Payment System.
   
4. Procedure for export to Nepal
   
   4.1 The exporter is required to prepare five copies of Nepal Invoice. The goods shall be assessed to duty in the same manner as the goods for home consumption. The classification and rate of duty should be in terms of Central Excise Tariff Act, 1985 read with any exemption notification and/or the said Rules. The value shall be the "transaction value" and should conform to section 4 or section 4A, as the case may be, of the Central Excise Act, 1944. It is clarified that this value may be less than, equal to or more than the F.O.B. value indicated by the exporter on the Bill of Export.
   
   4.2 The duty payable shall be determined on the Nepal Invoice and recorded in the Daily Stock Account it should be paid in the manner specified in rule 8 of the said) Rules.
   
   4.3 The exporter may request the Superintendent or Inspector of Central Excise having jurisdiction over the factory of production or manufacture, warehouse or approved premises for examination and sealing at the place of despatch 24 hours in advance, or such shorter period as may be mutually agreed upon, about the intended time of removal so that arrangements can be made for necessary examination and sealing.
   
   4.4 In case of exports under Duty Exemption Entitlement Certificate Scheme (DEEC), Duty Exemption Pass Book Scheme (DEPB) and claim for Drawback, the Superintendent of Central Excise shall also examine and seal the consignment and sign the documents in token of having done so. In exceptional cases, where the exporter has unblemished track record of compliance (Central Excise) and where there is non-availability of Superintendent of Central Excise due to leave, vacant post or other reasonable causes, the jurisdictional Assistant/Deputy Commissioner of Central Excise may permit examination and sealing by Inspector. Other types of export may be examined and sealed by the Inspector of Central Excise.
   
   4.5 The Superintendent or Inspector of Central Excise, as the case may be, will verify the identity of goods mentioned in the application and the particulars of the duty paid or payable. If he finds that the declaration in Nepal Invoice are correct from the point of view of identity of goods and its assessment to duty, and that the exporter has recorded the duty payable in Daily Stock Account, he shall seal each package or the container ensuring that the goods cannot be tampered with after the examination. Normally, individual packages should be sealed by using wire and lead seals and an all-sides-closed container by using numbered One time Lock/Bottle seals or in such other manner as may be specified by the Commissioner of Central Excise by a special or general written order. Thereafter, the said officer shall endorse and sign each copy of the application in token of having such examination done;
   
   4.6 The distribution of the Nepal invoice shall be, as follows:

   Original (First copy)	Hand over to the Exporter or his agent along with the goods, packages or container after sealing it.
   Duplicate (Second Copy)	To be put in a sealed cover and given to the exporter or his agent by the Central Excise Officer for being handed over to the officer of Customs In-Charge of the concerned land customs station
   Triplicate (Third Copy)	To be put in a sealed cover and given to the exporter or his agent by the Central Excise Officer for being handed over to the officer of Customs In-Charge of the concerned land customs station
   Quadruplicate (Fourth Copy)	To be retained by the Central Excise Officer;

   
   4.7 The exporter or his agent shall then be free to remove the goods for export to Nepal, through the specified land customs stations.
5. Procedure at the land customs station
   
   5.1 The exporter or his agent shall present the goods to the officer of Customs in-charge of the land customs station along with the original copy of invoice and the sealed cover containing duplicate and triplicate copies;
   
   5.2 The said officer shall examine the goods with reference to the declarations in the Nepal Invoice. Where the contents of all the copies of invoices tally and the packages, goods or container are satisfactorily identified with their seals in tact, the said customs officer shall make necessary entries in the register maintained at the land customs station and allow the goods to cross into the territory of Nepal. He may, to satisfy himself as to the identity of the packages, goods or containers from the particulars shown on the invoice, open container or packages and examine the goods, especially where the seals are broken;
   
   5.3 He will also certify on each of the three copies of the invoice to this effect and simultaneously indicate the running serial number in red ink prominently visible and encircled against Item 3 on all the three copies of the invoice.
   
   5.4 the customs officer, then deliver the original copy of the invoice duly endorsed to the exporter or his agent alongwith the goods for presentation to the Nepalese Customs Officer.
   
   5.5 He shall also send, directly the duplicate and triplicate copies of the invoice to the Nepalese Customs Officer in-charge of the check post through which the goods are to be imported into Nepal;
   
   5.6 the goods will then be produced before the Nepalese Customs Officer at the corresponding border check post along with the original copy of the invoice. The Nepalese Customs Officer, shall deal with the original copy as directed by His Majesty's Government of Nepal and return the duplicate copy, after endorsing his certificate of receipt of goods in Nepal directly to the officer of customs in-charge of the land customs station;
   
   5.7 the officer in-charge of the land customs station shall forward the duplicate copy to the Deputy Director of Inspection, Customs and Central Excise, Nepal Refund Wing, New Delhi. For this purpose, the said officer in-charge of the land customs station should keep a note of the return of duplicate copies from the Nepalese Customs Officer and remind the exporter for such copies as have not been received.
   
6. Procedure to be followed by the Directorate General of Inspection, Customs and Central Excise (Nepal Refund Wing), New Delhi
   
   6.1 The Directorate General of Inspection, Customs and Central Excise (Nepal Refund Wing), New Delhi [hereinafter referred to as "the Directorate"] shall maintain separate registers for each Indian Border Customs Check Post.
   
   6.2 The duplicate invoice will be entered in the respective registers showing the running serial number in the recapitulation statement register prescribed for the purpose.
   
   6.3 At the end of every month he shall calculate the amount of rebate due in respect of all certificates of exports received during that month and shall prepare a consolidated statement to arrive at the amount of rebate due to His Majesty's Government of Nepal.
   
   6.4 One copy of the recapitulation statement shall be forwarded to the Commissioner of Central Excise concerned for verifying the payment of rebate to Nepal Government and for issue of a post audit certificate in respect of the amount allowed as rebate against each invoice passed in that bill. In order to detect errors in the duty amount and quantity indicated. Internal Audit Department of the Commissionerate concerned should check this factor by comparison with the recapitulation statement forwarded by the Directorate and the monthly return of the factories concerned.
   
   6.5 Where any over payment is noticed the fact should be brought to the notice of the Directorate for making necessary adjustment.
   
   6.6 One copy of the recapitulation statement shall be forwarded to His Majesty's Government of Nepal.
   
   6.7 One copy of the recapitulation statement shall remain as office copy with the Directorate.
   
   6.8 After receiving the recapitulation statement, the Commissioner will get a verification conducted that the concerned factories have actually paid the duty of excise against which the rebate is to be given and the Commissioner/PAO of that Commissionerate shall furnish a certificate to the Directorate to the effect that all the concerned factories have paid the amounts of duty as indicated in the Annexure to the recapitulation statement.
   
   6.9 In case the Directorate does not receive the duplicate copy of the invoice from the Officer in-charge of the Indian Land Customs Station and the triplicate copy is not received by the Nepal Government, necessary check should be made with the officer in-charge of the Indian Land Customs Station concerned as to the whereabouts of the particular invoice.