Deemed export under CT3 & ARE-3

Can any body Explain the process of deemed export under CT3 and ARE -3 documents. what is the difference between ct3 and ARE-3. How system behave in the both cases.
Pl provide process and configuration document

Hi,
CT3 is the certificate which is provided by the customer to avail the exemption of paying excise duty , particularly export oriented units is elegible to issue this form. Where as ARE-3 is proff of document to submit to the central excise department. in this ARE-3 the excise duty claimed for exemption is mentioned and which will be certified by the customs dept.
Hope you got the point if help ful please reward.
Thanks
V.S.Aasish

Similar Messages

Deemed Export Under Rebate

Hi gurus,
I have a scenario for deemed export under rebate. As in case of exports there is a check for no bond-under rebate in J1IIN. But in case of Deemed Export there is no selection option in J1IIN.
Kindly give a solution as its GO-LIVE criticle. Right now i have to manually pass JV for this transaction.
Regards
Kishan

Hi Kishan,
Request to re-check with client on this scenario.
If you run thorugh Excise / CBEC manual - rules and regulation have been mentioned only against Exports (physical export of goods) under claim of Rebate.
<b>There is no provision for Deemed export under claim of Rebate.</b>
Available standard settings in SAP for deemed export are in sync with the present legal requirement.
Thanks and Regards,

Deemed/Export under Bond

Dear All,
I need to do 2 Transaction in Same plant
1)Deemed Export.
2)Export Under bond.
In Logistics-General --> Tax on goods Movements --> India --> Business Transactions --> Outgoing Excise Invoices --> Maintain Default Excise Groups and Series Groups.
i maintained Sales areaShipping pointPlantExcise GroupSeries Group+Selection...
1000100010001000A1S1+Export under bond
1000100010001000A1S1+Deemed Export...iam getting error
Target key must be different from source key
Thanks in Advance
Regards
raj.

Hi
The distribution channel for Domestic Export (Deemed Export) and Export to other country must be different too.
So pl. make different Distribution Channel and then do the setting.
The error " Target key must be different from Source Key" means one of the component of Sales Area (i.e., Sales Organisation, Distribution Channel, Division) must be different in Export and Deemed Export Scenario. Generally it is the Distribution channel which use to be different.
regards
Amitesh
Edited by: AA on May 18, 2009 12:17 PM

ARE-1 IN deemed export ????

Dear All
as far as my knowledge is concerned,
In direct exports after excise invoice, ARE-1 is created and can be with bond, no bond(rebate) or under LOU.
In deemed exports, after excise invoice, ARE-3 is created with CT3 Licence no at item level.
BUT
our clients says, he also wants to create ARE-1 in deemed exports with CT3 Licence.
Please clarify me in this regard.
We have finished configuration, testing and prototype testing also done.
Please confirm me whether it is legal or not???
Please let me know whether there will be AR-1 in deemed export???? i.e, export within the country(IN) to SEZ or 100% E.O.U customers???
Early answer is much appreciated.
-Mahesh

Hai Mandar
Thank you.There is SAP Note 941792-material to be sold in domestic market under ARE-1.
Looking at the note I find it applies to Systems with
ECC 6.0 and is corrected in Patch level : SAPKH60005
Since we are already on Patch Level SAPKH60015 there should be definately no need to apply this OSS.
Checking the source code i find all the mentioned changes are existing in the system and are active.
BUT, STILL I'AM NOT ABLE TO CREATE ARE-1 for DEEMED EXPORT.
we have two number ranges under number range objects J_1IEXCLOC and J_1IEXCEXP.
1.)we are doing [J1IIN] after [VF01] for local excise invoice using number range object J_1IEXCLOC
2.) we are doing [J1IIN] after [VF01] for export excise invoice using number range object J_1IEXCEXP and proceeding to create ARE-1 using num range object J_1IARE1----
'FINE'
But
3.) while doing [J1IIN] after [VF01] using num range object J_1IEXCLOC for deemed using num range object J_1IEXCEXP System showing error "Error in allocating Excise invoice number Interval not found Number object J_1IEXCLOC".
NOT ENABLING TO CREATE ARE-1.
if i use num range object J_1IEXCLOC at [J1IIN] and excise invoice type 'deemed' it is generating excise invoice and updating modvat database.
but, while creating ARE1 at [J1IA101] it is throwing an error "maintain number range object for object J_1IARE1, year, excise group.
but, as I cannot have two number ranges for ARE1.i.e., one for local and other for export.
Please suggest me.
Is it possible to apply any user exit to change customer currency sothat within India the exports excise invoice number is picked up.
PLEASE SUGGEST ME QUICKLY.WE ARE GOING LIVE.
Thanking you all
Maheshoe

Exports and Deemed Exports

Hi Experts
Glad if one of you could tell me the FUNCTIONAL process in
Exports
Deemed Exports
Regards
SDC

hi,
Deemed Exports refers to those transactions in which the goods supplied do not leave the country and the payment for such supplies is received either in Indian rupees or in free foreign exchange.
The following categories of supply of goods by the main/ sub-contractors shall be regarded as "Deemed Exports" under this Policy, provided the goods are manufactured in India:
(a) Supply of goods against Advance Licence/Advance Licence for annual requirement/DFRC under the Duty Exemption /Remission Scheme;
(b)Supply of goods to Export Oriented Units (EOUs) or Software Technology Parks (STPs) or Electronic Hardware Technology Parks (EHTPs) or Bio Technology Parks (BTP);
(c)Supply of capital goods to holders of licences under the Export Promotion Capital Goods (EPCG) scheme;
(d)Supply of goods to projects financed by multilateral or bilateral agencies/funds as notified by the Department of Economic Affairs, Ministry of Finance under International Competitive Bidding in accordance with the procedures of those agencies/ funds, where the legal agreements provide for tender evaluation without including the customs duty;
(e)Supply of capital goods, including in unassembled/ disassembled condition as well as plants, machinery, accessories, tools, dies and such goods which are used for installation purposes till the stage of commercial production and spares to the extent of 10% of the FOR value to fertiliser plants.
(f)Supply of goods to any project or purpose in respect of which the Ministry of Finance, by a notification, permits the import of such goods at zero customs duty .
(g)Supply of goods to the power projects and refineries not covered in (f) above.
(h)Supply of marine freight containers by 100% EOU (Domestic freight containersmanufacturers) provided the said containers are exported out of India within 6 months or such further period as permitted by the Customs; and
(i)Supply to projects funded by UN agencies.
(j)Supply of goods to nuclear power projects through competitive bidding as opposed to International Competitive Bidding.
The benefits of deemed exports shall be available under paragraph (d), (e), (f) and (g) only if the supply is made under the procedure of International Competitive Bidding (ICB). http://dgftcom.nic.in/exim/2000/not/not02/not0302.htm
Benefits for Deemed Exports
8.3
Deemed exports shall be eligible for any/all of the following benefits in respect of manufacture and supply of goods qualifying as deemed exports subject to the terms and conditions as given in Handbook (Vol.1):-
(a)Advance Licence for intermediate supply/ deemed export/DFRC/ DFRC for intermediate supplies.
(b)Deemed Export Drawback.
(c)Exemption from terminal excise duty where supplies are made against International Competitive Bidding . In other cases , refund of terminal excise duty will be given.
regards
sadhu kishore

Qty block against CT3 form for Deemed Export order

Hi,
Can we link sales order & CT3 form, purpose is that for deemed export order customer is giving new PO & new CT3. So want to make block sales order against CT3.
Pl. help to solve this issue.
Thanks

Hi,
First of all you need to mainataiin Number ranges for T.code:SNRO
1.Licence :J_1ILIC
2.Are3 :J_1IARE3
3.Create License In T.code : J1ILIC01
4.Create ARE 3 T.code: J!IA301.
4. Enter the license details in the item tab of ARE Create document.
on Posting the ARE 3 document Quantity and Value will reduces from the Licence. you can check again in
Regards
Shekar

Deemed Exports, where u tracking the ARE-3 doc in SD

Dear SD Gurus
what s the sequence of process in deemed exports in relation to ARE-3 form tracking, monitering and maintaining.
Please suggest in correct way

hi
Easy Access Path     SAP Easy Access India Localization Menu (J1ILN) > Indirect Taxes > Sales/Outbound Movements > Exports Under Excise Regulations > Deemed Exports > Central Processing >
Transaction Code     *J1IA301 *
On the initial screen, select u201CA21 Create ARE-3u201D and u201C R09 Outgoing Excise Invoiceu201D, enter Excise Invoice No. and press Enter .
At Header data, click on   tab, enter u201CDispatched Onu201D date & u201CRemoval Timeu201D
Click on   tab & Tick Print ARE Document Check Box
. Select Local excise as well as Customs dept address from Drop down list in   tab.
At Detail data Click on tab, enter u201CLicense yearu201D, u201CLicense number as Internal Certificate/Licenseu201D, License item(Optional), Click on   tab, enter Package Details if needed. You can enter any additional data at Header as well as Detail level in   tab. Click on Check   button & Click Save/ Post button.
System will ask for the Output Device, enter Output Device, Enter Number of Copies, Tick in Print immediately box & click on Print Button. To see the print preview, click on Print Preview Button.
You can subsequently u201CPostu201D ARE3 by selecting u201CA04 Post ARE-3u201D and u201C R12 ARE3 Internal Document Numberu201D.& press Enter and at Header data, click on   tab, enter u201CDispatched Onu201D date & u201CRemoval Timeu201D Click on Check   button & Click Save button.
ARE3 Change or Display
Easy Access Path     SAP Easy Access India Localization Menu (J1ILN) > Indirect Taxes > Sales/Outbound Movements > Exports Under Excise Regulations > Deemed Exports > Central Processing >
Transaction Code     J1IA301
On the initial screen, select u201CA02 Changeu201D and u201C R12 ARE3 Internal documentu201D, enter Internal document No. and press Enter .
At Header data, you can add Excise Invoice in   tab,   by clicking add button. click on   tab, to change date of u201CCreated Onu201D. You can change Local excise as well as Customs dept address from Drop down list in   tab. At Detail data Click on   tab, to change Package Details if needed. You can change any additional data at Header as well as Detail level in   tab. Click on tab, to change u201CLicense yearu201D, u201CLicense number as Internal Certificate/Licenseu201D, License item(Optional),
Click on Check   button & Click on Save   button.
ARE3 Cancel
Easy Access Path     SAP Easy Access India Localization Menu (J1ILN) > Indirect Taxes > Sales/Outbound Movements > Exports Under Excise Regulations > Deemed Exports > Central Processing >
Transaction Code     J1IA301
On the initial screen, select u201CA05 Cancelu201D and u201C R12 ARE3 Internal documentu201D, enter Internal document No. and press Enter .
On Next screen Click on Save   button.
Result
ARE3 is cancelled.
ARE3 Updation
Proof of Export Documents received.
Access the transaction choosing one of the following navigation options:
Easy Access Path     SAP Easy Access India Localization Menu (J1ILN) > Indirect Taxes > Sales/Outbound Movements > Exports Under Excise Regulations > Deemed Exports > Central Processing >
Transaction Code     J1IA301
On the initial screen, select u201CA06 Updateu201D and u201CR12 ARE3 Internal documentu201D, enter ARE3 Internal Document and press Enter .
At Header data, click on   tab, enter details of Rewarehousing Certificates in respective fields u201CCountersigned by Customeru201D u201CArrived Back u2013 In case of Return exportu201D, Click on Check   button and Click on Save button. System will display a message of u201CStatusu201D, click on u201CYesu201D button to continue.
Result
ARE3 Rewarehousing certificate details are updated.
ARE3 Reversal
This activity is performed to Reverse ARE3, when you have not received the Rewarehousing Certificate and you have to pay Excise Duty.
Prerequisite
ARE1 No. is Posted.
Procedure
Access the transaction choosing one of the following navigation options:
Easy Access Path     SAP Easy Access India Localization Menu (J1ILN) > Indirect Taxes > Sales/Outbound Movements > Exports Under Excise Regulations > Deemed Exports > Central Processing >
Transaction Code     J1IA301
Business Role     Excise Clerk
On the initial screen, select u201CA07 Reverseu201D and u201CR12 ARE3 Internal Documentu201D, enter Internal Document No. and press Enter .
At Header data, Click on   tab and enter u201CReason Codeu201D, Click on Check   button & Click on Save   button.
Result
ARE3 is Reversed.
Edited by: rithvika on Mar 24, 2009 2:22 PM
Edited by: rithvika on Mar 24, 2009 2:23 PM
Edited by: rithvika on Mar 24, 2009 2:23 PM

CT3 license for Deemed Export

Hi,
I am trying to create CT3 license for Deemed export by giving license type as None, but after posting the ARE3 when checking the license display it is not showing any updation. Please guide me if any setting needs to be maintained for license.
Also do we need to maintain excise duty component manually or it is to be automatic while creation of license.
Rgds,
Antima

hi ,
Maintain the License type as ct1 or ct2
CT1 is value based
CT2 is Quantity based
depending upon ur requirement maintain the license type while capturing the license
J1ILIC01 - Capture
Thanks and Regards,
Rahul

Are-1 for deemed exports.

Hi all,
AS per the client's requirement , they create ARE-1 for deemed exports in the following two instances...
1). With reference to their Bond they create ARE-1 , but this should be tracked as deemed exports.
2). With reference to CT-1 form number of the merchandise exporter they create ARE-1, this should be treated as deemed export.
Is there any way to create ARE-1 for deemed exports.. Am getting series group problem while generating ARE-1 , as deemed exports follow domestic series group. While generating ARE-1 both export and deemed exports should have the same series for number range...Please advise..

Hi
Deemed export can only be created against CT1 and CT2 licence types. That is ARE3 form.
and not ARE1
Regards
MBS

What is export under bond?

Hi,
tell me briefly what is export under bond?
Ram Rathode

hi,
Physical export : Product exported out side the country . Sold against LC ( letter of credit ) . This can be called as Direct Export also.
         Documents required to be prepared while physical export : Bill of lading , Cargo   manifesto , Certificate of qty and certificate of origion .
This can be with bond or without bond. If you export under bond , duty will be forgone , means , you will be creating ARE otherwise you need to pay duty .
Deemed export : Sale to the customer who is going to export the product after reprocessing in his plant . Here customer is within india.
         CT3 : is issued in case of sale to EOU ( Export Oriented Unit ) factories.
         CT2 : is issued in case of non - EOU customer ,but he is going to reprocess the product and export .This can be with or without Advance authorisation .
Hope , tried to explain in short the definitions and basic concepts. If u need in detail , i agree with Mr.Lakshmipathi.
Do post if any specific doubt exists.
saravanan

Basic excise duty calculated in duty free deemed export

Hi Experts,
We are facing an issue where system calculates basic excise duty in case of deemed export(duty free) . In some invoices it calculates basic excise duty though it should not calculate as it is duty free.
Our scenario is like this:-
At sales order in deemed export we take alternative tax classification as "7"( Header level - Billing tab). Due to this my JMOD value becomes Zero which is ok. Another condition type is JEX2 which is 100% of JMOD.
Now while creating invoice at VF01, value of JMOD AND JEX2 are Zero which is absolutely OK. But at the time of release to accounting system update 12% value in JEX2 only which flows to G/L.
Example:-
This case is ok.
Condition type                                      Price
PR00                                                  100
UTXJ(100% Of PR00)                           100
JMOD                                                 0
JEX2(100% OF JMOD)                         0
Wrong duty calulation
Condition type                                      Price
PR00                                                  100
UTXJ(100% Of PR00)                           100
JMOD                                                 0
JEX2(100% OF JMOD)                         12
In our most case this work fine means if JMOD is 0 then JEX2 is also 0, But in some invoices system calculate or update JEX2 with 12% value after release to account which is not at all required.
We have checked all the customization setting which are ok.
Please advise why system is behaving this way only in case of some invoices.
Your efforts will be highly appreciable.
Regards,
Dharminder

Dear Experts,
If anyone face this issue please give your valuable inputs. I will highly appreciates if got some advise or suggestion on the issue in J1IIN
We have done the debug at our end and following is the observation
The name of the include is - MJ1IINF01
The variable that needs to be watched is - CUST_TYP
The perform called during the execution is DETERMINE_INVOICE_TYPE
1) Export first and deemed next
When we first create invoice for export the variable CUST_TYP is set to
“F” and the invoice is created as per expected with correct duties.
After this if we create a deemed invoice without exiting the screen the
invoice type under “UTILIZATION”, include keeps CUST_TYP as “F” and
do
not change it to “L”. Hence it remains export. Which is the cause of
problem we are facing at present..
But in next case it changes CUST_TYP properly as explained below.
2) Deemed first and Export next
When we first create invoice for deemed the variable CUST_TYP is set to
“L” and the invoice is created as per expected with correct duties.
After this if we create a export invoice without exiting the screen the
invoice type under “UTILIZATION” include changes CUST_TYP as “F” and
hence we get desired effect.
Our analysis shows that the include is not able to change variable
CUST_TYP to “L” from “F” in first case. But in second case it is
correctly changes to “F” from “L”.
Please advise.
Regards,
Dharminder

How to update Quantity and Value in Licences for Deemed Export

Dear All,
Could you please let me know where I have to update the Quantity and Value of Licence in case of Deemed export.
I am not aware much about Deemed export. I hope CT3 is the licence, against which we have to maintain the Value or Quantity.
While creating ARE3 documet, Quantity or Value will be reduced from the Licence.
Kindly update me regarding this.
Regards,
Mullairaja

Hi,
First of all you need to mainataiin Number ranges for T.code:SNRO
1.Licence :J_1ILIC
2.Are3 :J_1IARE3
3.Create License In T.code : J1ILIC01
4.Create ARE 3 T.code: J!IA301.
4. Enter the license details in the item tab of ARE Create document.
on Posting the ARE 3 document Quantity and Value will reduces from the Licence. you can check again in
Regards
Shekar

Deemed export

hi all
please find below my client scenario
my client process is (MTO) we are exploding the BOM in the sales order
project item-item category is TAP
equipment item- item category is TAN
components-item category is BTAN
in the delivery we take all the components(i.e btan) and deliver .with reference to delivery we create proforma invoice and subsequently
excise invoice(J1IIN) and click on utilization and select deemed export and save
my issue is while creating the license i have to give all the materials , but my problem is i have more than 100 materials
is there any solution that i can use only one license number for all the materials?
while creating ARE-3 i have to give the license number for each and every line item.
please provide the solution
Thanks in advance
sri

Hi
AS far as i know CT3 license is material specific with quantity and value. So for every material you should have a CT3 and should be got from the customer.
If you have a 100 sub materials then i suggest create a recording in BDC or LSMW so that it will be easy for your client in future.
Create a recording and upload the CT3 licences.
And also in J1IA301 while creating ARE3 you have to refer the CT3 license for this also create a recording to ease the manual entry.
Prefer BDC for this as in requires table control and also discuss with your abapper
regards

Export under Rebate

Dear Friends,
I need to generate both Rebate and LOU excise invoices.
IMG setting I have maintained as below:
1) LG --> Tax on Goods Movement --> India --> Basic Settings --> Maintain Series Group. Here for the series group, "No util" and "Imm.util" boxes are unchecked
2) LG --> Tax on Goods Movement --> India --> Business Transaction --> Outgoing Excise Invoice --> Maintain Default Excise Groups and Series Groups. Here under the tab Exports "Exports under LOU " .
While creating excise invoice in J1IIN, after giving the billing document reference and entering into screen, when I am selecting the No bond option (Export Bond / No Bond / Deemed / LoU) ...system is giving a message .....
Calculate Excise duty on the document.....
The message details shows - The billing document has no excise duty..... Use 'Calculate Tax' Function to determine excise Duty for export .

Dear Jude,
I have maintained one pricing condition PR00 both for capturing the price and assessable value....where I have maintained Condition category 'H' - in condition type PR00.The values are flowing into the Excise Invoice and subsequently into ARE1....
My Issue ....
1.The values when I create a Export Excise invocice the excise values are in Display mode....and No A/C doc gets generated for the Export Excise Invoice under LUT and Rebate...Let me know this is fine.
2.Once I create a ARE1 referring to the Rebate Excise Invoice.....the output shows the blank "AMOUNT OF REBATE " column, but the "VALUE" and the "DUTY PAID" coulmns are showing the Excise values...
So my question is once I create a ARE1 for Rebate the A/c entries should update the Cenvat Credit Receivables A/c and Rebate claim A/c......How can i achieve this....Since the Export Excise Invoice and the ARE1 generates no A/C doc?
Thanks
Ivy

ARE1 procedure for exports under bond.

Hi Sap Experts
I need some help on ARE1 flow,i am doing export sale.
So in first step i create OR>>PR>>PO(sto)>>Outbound delivery>>proforma>>Excise Invoice.
Before this i have created Bond on Port Plant.
so In excise invoice creation(j1iin) i am selecting Utilization and Local so i am getting option Bond/No Bond/Deemed/Lou.
But the problem here is Deemed is coming in blue,where actually Bond should come.
So Experts please though some light on this as i am doing this senario first time.
i want to know what is the procedure should follow both in trasaction and configuration wise for ARE1 .
I wish i could get Inputs from Experts
Thanks & Regards

Dear
Goto SPRO
Logistics general
Tax on goods movements
India
Business Transactions
Outgoing excise invoices
Maintain default excise groups and series groups
In this you maintain the
sales area
shipping point
Plant
Excise group
Series group for your requirement and assign export under bond here.
Then your requirement will satisfy. Now here assigned 'Deemed',so it comes blue in J1IIN. Change this to 'Export under bond', then in J1IIN bond will be in blue.
Please note, change only the required one, not all.
For ARE-1 creation do you have any addon module for SAP?
Regards
Deepu Pillai

Deemed export under CT3 & ARE-3

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