what is the ARE Document and use

[Former Member]

experts through some light on this

what is the ARE Document.

The reference document for Creation of ARE Document is the Excise Invoice. All the details captured in Sales Order, Delivery, Billing and excise

Invoice is defaulted in the document.

ARE1 & ARE3 Tracking for Running Bonds.

1.can anypne tell me waht is this are (ARE1 & ARE3 ) document means.

2.what is the use of it and what data it contains.

3.do sd consultants need to take care of this.

[Former Member · Accepted solution]

Ramesh Kumar,

what is the ARE Document.

A Form that companies have to fill when they moe excise goods from their manufacturing plant to export.

The Form Exempts them from paying the Excise duty, when they move the goods from their premises.

can anypne tell me waht is this are (ARE1 & ARE3 ) document means.

ARE1 - Exisable goods for Export - These settings are applicable for Exports under Bond, Exports under claims of rebate

ARE3 - Excisable goods from Factory - These settings are applicable for Exports under Bond, Exports under claims of rebate

You create an ARE3 When you want to send a customer a deemed Export

what is the use of it and what data it contains.

It Consists of your Material, Excise Duty details, Cess, Freight, Insurance , CIF value and selling commission.

do sd consultants need to take care of this.

Yes SD individuals are required to carry out configuration for this process.

1. IMG --> LG --> Tax on goods movement --> India --> Business transactions --> Exports under excise regulations --> Exports --> Make settings for ARE1 Procedure

2. IMG --> LG --> Tax on goods movement --> India --> Business transactions --> Exports under excise regulations --> Deemed Exports --> Make settings for ARE3 Procedure

Regards

Sathya

[Former Member]

hI

Export Cycle:

Export Cycle starts with execution of Letter of Undertaking or BOND. Bond is executed with some amount which is accounted in system. The Export form which is called as ARE1 is created at the time of Export Sales against Excise Invoice and sent along with the consignment. Value is debited as soon as the export sales happens wrt that particular Bond and the same is accounted in Bond Register.

ARE1 with Export documents are received back after duly signed by Customs authorities after actual export from the port for onward submission to Excise dept. which has to be received within 180 Days from the date of preparation. The activity is called as Proof Of Export (POE). You will be exporting the goods without payment of excise duty. Bond amount is credited as soon as the POE is received and accounted in system.

If the POE is not received within 180days, supplying plant should debit the excise duty.

In some of the companies, export happens on Letter of Undertaking, which does not have a value and you will be exporting the goods without payment of excise duty.

You have a option to export the goods on payment of excise duty, which is called as export under Claim of Rebate, in which at the time of Clearance, you will be paying the duty and you will get the refund after submitting the POE to Excise Dept.

Deemed Export Cycle:

Deemed export cycle starts with receipt of CT3, CT2 certificate from the Customer, the certificates are to sale our finished goods to Domestic Customer without payment of duty. Certificates received from the customer are updated in system, CT3 certificate contains material and qty which should not be exceeded, where as CT2 Certificate contains material, qty, value & duty any of which should not be exceeded.

At the time of sales, Deemed Export Form ARE3 is prepared against the Excise Invoice and sent along with the consignment. The ARE3 is signed by the excise authorities of customer which should be sent to the supplying plant within 90 days, which is called as Rewarehousing Certificate. If rewarehousing Certificate is not received at supplying plant, then supplying plant is liable to pay the excise duty.

[Former Member]

Hello,

1.can anypne tell me waht is this are (ARE1 & ARE3 ) document means.

ARE1 Form - It to be prepared and handed over to govt for export scenario

ARE3 Form - It to be prepared and handed over to govt for deemed export scenario

2.what is the use of it and what data it contains.

It is a mandatory document and to be submitted to excise dept.

3.do sd consultants need to take care of this.

After invoice get generated , the form to be printed . It takes the values from invoice.

Thanks

Rk

[Lakshmipathi]

1.can anypne tell me waht is this are 
      (ARE1 & ARE3 ) document means.

It is one of the Central Excise documents being prepared by all manufacturing units when they export their products to overseas countries.

2.what is the use of it and what data it contains

.

The purpose of this creation is to avail exemption of excise duty. It contains all datas that you show in invoice like sold to party, ship to party, total number of pallets, items exported, quantity etc.,

3.do sd consultants need to take care of this

Part of the IMG settings will have to be taken care by FI and some part by SD

Last but not least, had you searched the forum to find out answers for these questions ??

thanks

G. Lakshmipathi