I (Meaning and importance of Exports) Unit Structure

a) Export under bond 
– 
Under this system, the exporter need not pay any amount of 
duty but export the goods under a bond supported by a bank 
guarantee, for a sum equivalent to excise duty chargeable on such 
goods. As this system amounts to a “running bond account”, the 
bond is arranged for a suitably large amount with the approval of 
the Excise Authorities so that several consignments may be 
exported under the same bond without frequent renewals. 
b) Export under Rebate 
– 
Under this system, the manufacturer / exporter initially pays 
the duty and then claims its refund after shipment of the goods. 
PROCEDURE FOR EXCISE CLEARANCE
The common procedure of excise clearance under „bond‟ 
and under „rebate‟ is as follows – 
1) Preparing of Invoice 
– 
The expert goods have to be cleared from the factory under 
invoice. The invoice contains details like name of the exporter, 
value of goods, excise duty chargeable, etc. The invoice is to be 
prepared in triplicate. In case of export under Bond, the invoice 
should be marked as “For Export without payment of duty”. In 
addition to the invoice, a prescribed form ARE-1 has to be filled in 
by exporter. 
2) Filling up of ARE-1 Form 
– 

---

195 
The exporter has to fill up ARE-1 form in five copies. Which 
can be used at the time of claiming other export incentives? The 
ARE-1 copies have distinct colour for the purpose of verification 
and processing. 
Original copy
- 
white 
Duplicate copy 
- 
Buff 
Triplicate copy 
- 
pink 
Quadruplicate copy
- 
Green 
Quintuplicate copy
- 
Blue 
3) Application to Assistant collector 
– 
The exporter now has to remove the goods from the 
factory/warehouse premises for which he has to apply to Assistant 
collector of central Excise.