Exports to Nepal - Notification No. 46/2001-C.E. (N.T) needs amendment.
PURSUANT to Revised Treaty of Trade between Government of India and Government of Nepal, exports to Nepal have been put at par with exports to other countries (except Bhutan). In this regard, six Notification Nos. 24/2011-Central Excise(N.T), 26/2011-Central Excise(N.T), 27/2011-Central Excise(N.T), 28/2011-Central Excise(N.T), and 29/2011-Central Excise(N.T), all dated 5.12.2011 have been issued to amend earlier Notification Nos 19/2004-Central Excise(N.T) dated 6.09.2004, 42/2001-Central Excise(N.T) dated 26.06.2001, 43/2001CE(N.T) dated 26.06.2001, 44/2001-Central Excise(N.T) dated 26.06.2001 and 45/2001-Central Excise(N.T) dated 26.06.2001, respectively.
But, there is one more Notification which perhaps the Board was not aware of at the time of issuing the above Notifications. It is Notification No 46/2001 CE(NT) dated 26.06.2001. This Notification still reads:
In pursuance of sub-rule (1) of rule 20 of the Central Excise (No.2) Rules, 2001 (hereinafter referred to as the said rules), the Central Government hereby extends the facility of removal of any excisable goods falling under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) from the factory of production or such other premises as may be approved by the Commissioner intended for storage in a warehouse registered at such place as may be specified by the Board and for export therefrom under the provisions of rule 18 of the said rules to Nepal and rule 19 of the said rules to all countries, by such exporter or class of exporters as may be specified by the said Board.
With effect from 01.03.2012, exports to Nepal were brought on par with export to other countries and export is permissible under Rule 19 to Nepal also. But still, the above Notification allows setting up of export warehouses for exports only under Rule 18 for exports to Nepal. This needs to be corrected immediately to avoid possible disputes.
Further, Notification No 45/2001 CE(NT) still carries the following para which has become redundant after bringing the exports to Nepal on par with other countries. This special provision was required earlier as exports to Nepal was not allowed under Bond.
(3) Export in bond of petroleum oil and lubricant products to Nepal. - Notwithstanding anything contained in condition (1) above, the export in bond without payment of duty of excise of petroleum oil, liquified petroleum gas and lubricant products to Nepal, through the agency of Nepal Oil Corporation from calibrated stocks of M/s Indian Oil Corporation registered as a warehouse in accordance with the provisions rule 20 the Central Excise (No.2) Rules, 2001, and situated at places notified for the purpose, from time to time, or purchased without payment of duty from tanks of other Oil Companies or Undertakings is permitted provided that the Indian Oil Corporation shall execute a bond in the form specified in Annexure-I, to cover removals of petroleum oil, liquified petroleum gas and lubricant products to be exported for such amount and in such manner as may be determined by the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise having jurisdiction over the installation from which the petroleum oil, liquified petroleum gas and lubricant products are to be exported.