Miscellaneous Export Provisions, Excisable Goods cleared under A.R.E.1 are not exported for any reason and the exporter intends to divert the goods for home consumption.

Cancellation of Export documents
Re-entry of the goods
Re-import of exported goods for repairs
Entry of goods in another factory
Samples of export goods

Part-V
Miscellaneous Export Provisions

1. Cancellation of Export documents
   
   1.1 If the excisable goods cleared under A.R.E.1 are not exported for any reason and the exporter intends to divert the goods for home consumption, he may request in writing the authority who accepted the bond or letter of undertaking to allow cancellation of application, and diversion of goods for consumption in India. He will be permitted to do so if he pays the duty as specified in the application along with interest at the rate of twenty four percent per annum on such duty from the date of removal for export from the factory or warehouse till the date of payment of duty. The permission shall be granted within 3 working days. Since duty assessment on A.R.E 1 has to be done in normal course, there will not be any need for re-assessment by the Department or the assessee unless there are reasons to believe that the assessment was not correct. After the duty is discharged, the exporter may take credit in his running bond (where bond is furnished) on the basis of letter of permission, invoice and TR-6 Challans on which duty is paid. He shall record these facts in the Daily Stock Account
   
   1.2 If the exporter, after clearing the goods for export without payment of duty, intends to change the destination or buyer or port/place of export, he may do so provided he informs the bond/LUT accepting authority in writing about the changes and makes necessary changes in all the copies of A.R.E.1 and the invoices. If he intends to cancel the original export documents and issue fresh ones, the same may be done under permission and authentication by bond/LUT accepting authority who will ensure that the serial no. and date of the initial documents are endorsed on the fresh documents. In such cases, if bond was furnished for single consignment, fresh bond may not be asked.
   
2. Re-entry of the goods, cleared for export under bond but not actually exported, in the factory of manufacture.
   
   2.1 The excisable goods cleared for export under bond or undertaking but not actually exported for any genuine reasons may be returned to the same factory provided –
   1. such goods are returned to the factory within six months along with original documents (invoice and A.R.E.1);
   2. the assessee shall give intimation of the re-entry of each consignment in Form D-3 within twenty-four hours of such re-entry;
   3. such goods are to be stored for separately at least for 48 hours from the time intimation is furnished to Range Office or shorter period if verification is done by the Superintendent of Central Excise in the manner mentioned subsequently ; and
   4. the assessee shall record details of such goods in the daily stock account and taken in the stock in the factory;
      
      
   2.2 The Superintendent of Central Excise will verify himself or though Inspector in charge of the factory, about the identity of such goods with reference to invoice, A.R.E.1 and the daily stock account in respect of 5% of intimations, within another 24 hours of receipt of intimation.
   
   
3. Re-import of exported goods for repairs etc. and subsequent re-export
   
   3.1 It has been provided in the Notification 42/2001-Central Excise (N.T.), supra, that the exported excisable goods which are re-imported for carrying out repairs, re-conditioning, refining, re-making or subject to any similar process may be returned to the factory of manufacture for carrying out the said processes and subsequent re-export. It may be noted that ‘re-import and re-export’ shall be governed by the provisions of the Customs Act, 1962.
   
   3.2 So far Central Excise is concerned, the manufacturer shall maintain separate account for return of such goods in a daily stock account and make suitable entry on the said account after goods are processed, repaired, re-conditioned, refined or re-made. When such goods are exported, the usual export procedure shall be followed.
   
   3.3 Any waste or refuse arising as a result of the said processes shall be removed from the factory on payment of appropriate duty or destroyed after informing the proper officer in writing at least 7 days in advance and after observing such conditions and procedure as may be specified by the Commissioner of Central Excise and thereupon the duty payable on such waste or refuse may be remitted by the said Commissioner of Central Excise.
   
   
4. Entry of goods in another factory of the same manufacturer for consolidation and loading of consignment for export:
   
   4.1 Goods removed without payment of duty for export on A.R.E.1 from one factory (hereinafter referred to as ‘the first factory’) of a manufacturer are allowed to enter in another factory of the said manufacturer (hereinafter referred to as the ‘subsequent factory’) ONLY for the purpose of consolidation and loading of goods manufactured in subsequent factory and export therefrom subject to following conditions: -
   1. The exporter shall be required to get his goods examined and sealed at each factory [the places of despatch] by a Central Excise Officer.
   2. The export goods shall be brought under cover on invoice and A.R.E.1 in the subsequent factory in original packing and duly sealed by Central Excise Officers. In case goods are stuffed in a container, Central Excise Officer shall duly seal the container in the first factory and the sealing of each package shall not be insisted upon. The Central Excise Officer having jurisdiction over the subsequent factory shall supervise the opening of the seal of container, loading of goods (duly sealed if these goods are to be loaded in open truck/vehicle) belonging to the subsequent factory in vehicle or container and sealing of the container.
   3. The exporter or the manufacturer shall pay the supervision charges.
      
      
5. Samples of export goods
   
   5.1 The Central Excise Officer examining the consignment would draw representative samples wherever necessary in triplicate. He would hand over two sets of samples, duly sealed, to the exporter or his authorized agent, for delivering to the Customs Officer at the point of export. He would retain the third set for his records. The instructions and procedure for drawl of samples specified by the Board should be followed.