What is ARE1, ARE2 and ARE3 in CIN?

[Former Member]

Can any one explain me what is ARE1, ARE2 and ARE3 in CIN?

[Former Member · Accepted solution]

Hi Swamy

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

Regards

Sandeep Bhowmick

[Former Member]

I resolved it. Thanks for your valuable inputs.

[Former Member]

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::

http://help.sap.com/saphelp_47x200/helpdata/en/93/75663ca0a9272ae10000000a11405a/frameset.htm

with regards

Amjad

[Former Member]

Hi,

R/3 allows 3 types of exports

1.Export under bond

2.Export under claim for rebate

3.Deemed exports

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

Deemed Export:

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...

Best Regards,

Amit