R/3 allows 3 types of exports
1.Export under bond
2.Export under claim for rebate
Let us analyse only case 1 and 3 here....
Export under bond:
Each excise bond only covers a limited amount of basic excise duty ,the bond value. Every time we post an ARE-1 document the system reduces the bond balance automatically. Please note that excise bonds should be assigned to ARE-1.
Following is the processflow involved in ARE-1
1.Receive the excise bond forrm Govt, enter that in system
2.Receive sales order from customer
3.Created delivery and excise invoice(type:export under bond)
4.Excise clerk creates ARE-1 doc,calls the local excise offier to check the goods
5.Excise officer check the goods against ARE-1 and fillout a part of form
6.Clerk posts ARE-1 and exise officer will sign in that
7.Shipping dept ship the goods and before it leaves the country customs will check the goods
8.Customs will check the ARE-1 and will fill out part b of ARE-1
9.Clerk receives and update ARE-1 send it back to excise officer he will send the excise clerk a final confirmation
10.Excise clerk will close ARE-1
We can ship deemed export to ANY customer who is in possesion of Deemed export licence without paying any basic excise duty,but only when the goods are accompanied by an ARE-3 doc. For this in R/3 we have to enter the CUSTOMERS DEEMED EXPORT LICENCE.Please note that we can issue an ARE-3 only with respect to a customer deemed licence and its should be assigned to ARE-3
All the procees steps involved in ARE-1 are same here to except that customer warehouse person receives the goods ,fills out the part b of ARE-3 doc and send it back to the excise clerk...
ARE 1 is for Export
ARE 3 is for Deemed Export
There is no ARE 2
For details please see the help.sap.com--> under export under excise regulation you will find all the details of ARE 1 and ARE3
you will find all the details of Exports Scenario
1. Export under bond
2. Export under no bond(export under claim for rebate) etc
Dear Swamy Kumar,
Actually, Manufacuting plants are entitled not to pay any excise duty ,as long as the goods are accompanied by an ARE document.R/3 system Handles ARE docs and other permitted docs like export bonds and deemed export licences.
Please check the given below link::