Export under No bond?

Hi
In what case Export under no bond possible?
As per my knowledge for Export ARE-1 is required.
for ARE-1 creation Bond is required?
Does Export under no Bond means Export with LOU???
Reg,
Amol

In exports, under three methods, we can declare the excise returns.  They are
1)  Exports Under Bond
2)  Exports Under Letter of Undertaking and
3)  Exports under Rebate
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. 
The other two will be followed separately due to format restriction.
thanks
G. Lakshmipathi

Similar Messages

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    Edited by: sapmmlearner on May 13, 2011 1:39 PM
    Edited by: sapmmlearner on May 14, 2011 7:04 AM

    hi experts... pls do reply...

  • Activate LOUT and Export under BOND in J1IIN

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  • Export under bond / no bond / LUT

    dear all,
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    Thanks & Regards

    Hello
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  • Export under Rebate - No Bond

    Dear all,
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    Hi Kishan,
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  • Export sales under excise bond scenario

    Hi Experts,
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    Hi,
    When you create an excise invoice for exports under rebate . A/c document needs to be generated and than you will create an ARE1. So for export under rebate you debit the duties at the time of sale and take the rebate in the end of the month.
    Setting for for normal exports and export under rebate will be different.
    Also note that at the time of ARE1 no g/l account entries will be trigger in any process
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  • ARE1 procedure  for exports under bond.

    Hi Sap Experts
      I need some help on ARE1 flow,i am doing export sale.
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    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
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    Please note, change only the required one, not all.
    For ARE-1 creation do you have any addon module for SAP?
    Regards
    Deepu Pillai

  • Exports Under Bond, Message No.: 8I102

    Hi
    When I am creating Excise Invoice for Export under Bond scnerio, duty values are not coming, even though I have maintained duty rates in J1ID, and maintained condition types BED in pricing procedure as statistical.
    Give me detailed solution, and procedure to be followed for Export Sales Under Bond.
    Babu Rao

    First check whether the duty values are flowing in billing document only then, the same will flow into your excise invoice.
    If in billing document, excise values are flowing but not in excise invoice, then go to IMG Logistics-General --> Tax on Goods Movements --> India --> Business Transactions --> Outgoing Excise Invoices --> Maintain Default Excise Groups and Series Groups.
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    thanks
    G. Lakshmipathi

  • 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 .
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    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

  • Deemed/Export under Bond

    Dear All,
    I need to do 2 Transaction in Same plant
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    2)Export Under bond.
    In Logistics-General --> Tax on goods Movements --> India --> Business Transactions --> Outgoing Excise Invoices --> Maintain Default Excise Groups and Series Groups.
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    1000100010001000A1S1+Deemed Export...iam getting error
    Target key must be different from source key
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    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

  • Export under bond

    Dear Fnds,
    When iam Doing the Excise Invoice ,when iam Clicking on the Utilization tab.
    System Directly showing Deemed Export,Actually I need  to Create ARE-1(Export under bond).
    Where is this Setting.
    Regards
    raj.

    Hi
    I think you have two series groups 1 for domestic and another for exports
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    or else you can maintain the default series groups in
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    Sales Org.
    Distr. Channel
    Division
    Shipping Point
    Plant
    Excise Group
    Series Group
    Export Type   as B EXPORT UNDER BOND
    regards

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