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ARE1 creation

Former Member
0 Kudos

Dear Expert,

anyone tell me the running bond full process?

Accepted Solutions (1)

Accepted Solutions (1)

Lakshmipathi
Active Contributor
0 Kudos

In the attached link, go through the procedures explained under Export of goods under bond without payment of duty

[Procedure for Export |http://cenexcisenagpur.nic.in/Excise/pro_export.htm]

Also from SAP point of view, check this documentation

[Excise Bond|http://help.sap.com/saphelp_470/helpdata/en/5b/75643c07437c7fe10000000a114084/content.htm]

thanks

G. Lakshmipathi

Answers (1)

Answers (1)

Former Member
0 Kudos

HI

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.

CREATION OF BOND

Easy Access Path>>>>>> SAP Easy Access India Localization Menu (J1ILN)> Indirect Taxes > Master Data> Excise Bond

Transaction Code>>>>>>> J1IBN01

On the initial screen, enter Plant, In Bond Type field; select the respective Bond Type i.e. u201CFixed Bondu201D, u201CLetter of Undertakingu201D, or u201CRunning Bondu201D. Enter Bond no. as per Exc. Dept, Bond value in INR, Select Type of dispatch i.e. Multiple or Single, Bond Execution dt., Dt. of expiry, Bond current balance if any, Select Surety as u201CYesu201D if any surety has been issued like Bank Guarantee or any other and enter the details of the same , else select u201CNou201D and press Save.

regards

Prashanth