SAP CIN : What is ARE-1 Form ?

ARE-1 : A form, in India, that companies has to fill out when they remove excisable goods from there manufacturing plants for export. The form exempts them from paying excise duty when they remove the goods from their premises .

The excisable goods shall be exported within six months from the date on which they were cleared for export from the factory of manufacture or warehouse. This date will be indicated on the ARE.1 and invoice issued for the purpose.As being an Export Document it is prepared in quintuplicate (5 copies).

Scenario:

If we exceed the export period, we forego the exemption from basic excise duty and we must pay the excise duty to the
excise authorities. If we try to change an ARE-1 after the end of the export period, the system issues a warning message.

We then have two options:

•  If we manage to obtain an extension from the excise department, we enter the extension date in the ARE-1. This effectively extends the ARE-1’S export period.
•  Otherwise in the case of exports under bond we must pay the excise duty plus interest. In the case of exports under claim for rebate, we forego the excise duty already paid. We then close the ARE-1 as normal.

As per present law the Export period & Rebate period is 6 months.

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