2.    In this regard references have been received from the field formations that a large number of units whose turnover for export run into few crores are not following AR-4 procedure for export on the plea that their turnover for home consumption is less than Rs. 30 lakhs. Further, some unscrupulous manufacturers are also clearing their goods without payment of duty under the guise of export clearances.

3.    The issue has been examined. It is clarified that Board's Circular No. 87/87/94-CX dated 26.12.94 prescribes that units manufacturing dutiable excisable goods and desiring to export the same without payment of excise duty can do so after execution of the requisite bond with the competent Central Excise Officer. The Circular also provides in that the earlier instructions on the subject which are inconsistent with these instructions may be treated as withdrawn. under the Circular No. 37/37/94-CX dated 20.5.94 has already been superseded vide Circular No. 87/87/94-CX dated 26.12.94.

4.    In view of above it may be ensured that the export by a manufacturer exporter is allowed only under prescribed procedure and under regular AR- 4 proforma.

5.    The trade and field formations may be informed suitably.