Difference betwenn Bond & LOU

Question

Hi,
1 what is the diffrerence between     1. BOND & LOU
      2 No bond & export under clain for rebate
2. when we create excise invoice (J1IIN)
for domestic in utilization -Excise invoice type is LOCAL
for EXPORTS in utilization -Excise invoice type is    EXPORT  Bond / No Bond / Deemed / LoU
how system differentiates between domestic & exports excise invoice
& on what criteria this local/ Bond / No Bond / Deemed / LoU comes automatically.

Answer 1

1)  Exports Under Bond
Exporters are classified into two categories. Manufacturer-Exporters who manufacture and export  the goods in his own name without payment of excise duty and Merchant Exporters who buy the goods without payment of excise duty from a manufacturer and export the goods in his name.  For getting the goods without payment of duty, the merchant exporter has to necessarily execute a bond (standard forms are prescribed for various types of bonds, in which the assessee gives an undertaking to export the goods within a stipulated period as per the law).  The execution of bond is to ensure that in case of non-fulfillment of obligation, the central excise duty amount liable to be paid on the goods can be realized from him. Normally the bond is executed for an amount equivalent to the duty amount payable on the goods that the exporter is planning to export.  Whenever  the goods are cleared from the factory without payment of duty for export, the duty amount payable on the goods will be debited from the Running Bond Account.  Whenever the goods are actually exported (after the proof of export is received from the Division/Maritime Commissioner),  the manufacturer will take credit of the duty amount debited earlier by him.  The manufacturer also has the option to maintain a running bond account by executing a bond with the Central Excise authorities.    Though it is optional for a manufacturer-exporter to execute a bond for export clearances, it is very much necessary for merchant exporters. 
2)  Exports under Letter of  Undertaking
The manufacturer  exporters have another option for clearing their goods for export without payment of duty.  They have to give a letter of undertaking which is valid for a year.  This procedure of giving a letter of undertaking  was introduced as a liberalization measure.  The assessee will not have to follow the difficult legal procedures involved in executing a bond (providing surety/security in the form of Bank Guarantee etc).  It will be sufficient if he just gives the letter of undertaking in the form prescribed. 
3)  Exports under Rebate
Export  under Rebate is the procedure in which the exporters first pay the central excise duty before clearing the goods from the factory and subsequently get it back by applying for rebate after the goods are exported.  They have to apply to the Division or to the Maritime Commissioner (designated exclusively to look after all Export related issues) as the case may be, along with the required documents (usually the Export Promotion copy of the Shipping Bill and Bill of Lading) to prove that their goods had actually been exported.    Rebate can be claimed for both the inputs (purchased from indigenous markets and used in the manufacture of exported goods) as well as for the final products.  Normally, rebate is being widely opted by non-excise assessees (for example garment exporters) who procure raw materials locally, manufacture their final products and export them.   It is similar to Drawback of Customs duties in respect of Imported raw materials. 
With regard to number range for domestic and exports, you have to maintain a seperate number range for each in T.Code SNUM  and the Objects are
-  J_1IEXCEXP:::::for  Export excise invoice number range
-  J_1IEXCLOC:::::for  Local excise invoice number range
thanks
G. Lakshmipathi