CBIC Extends Rule 18 & Rule 19 Excise Export Benefits to Maldives and Mauritius
The Central Government has notified a significant change to the export-related provisions under the Central Excise Rules, 2017 by issuing Notification No. 03/2026-Central Excise (N.T.) dated 30th June, 2026. Through this amendment, Maldives and Mauritius have been added to the list of countries covered under the provisos to Rule 18 and Rule 19 of the Central Excise Rules, 2017.
This change has an immediate impact on manufacturers and exporters dealing with excisable goods that are supplied to these two countries, particularly in relation to rebate of duty on exports and export without payment of duty.
Legal Basis and Nature of the Amendment
Statutory power invoked
The amendment has been carried out in exercise of powers granted to the Central Government under section 37 of the Central Excise Act, 1944 (1 of 1944). Acting under this enabling provision, the Government has framed what is titled as the:
Central Excise (Second Amendment) Rules, 2026
These rules are notified via G.S.R. 532(E) and are effective from the date of issue itself, i.e., 30th June, 2026.
Scope of amendment – What exactly has changed?
The Central Excise Rules, 2017 have been amended at two specific places:
- Proviso to
Rule 18– Rebate of duty on exports - Proviso to
Rule 19– Export without payment of duty
Earlier, the provisos to both Rule 18 and Rule 19 referred only to:
“Nepal, Bhutan, Bangladesh and Sri Lanka”
By virtue of the present amendment, this phrase has been substituted with:
“Nepal, Bhutan, Bangladesh, Sri Lanka, Maldives and Mauritius”
Thus, the scope of these provisos now extends to six countries instead of four, thereby formally including Maldives and Mauritius in the same treatment as the previously listed neighbouring destinations.
Effective date and continuity
- The amendment rules come into force immediately upon publication of the notification.
- The principal Central Excise Rules, 2017 were originally notified vide G.S.R. 733(E), dated 30th June, 2017.
- They had last been amended by Notification No. 02/2026-Central Excise (N.T.) dated 26th March, 2026 (G.S.R. 203(E), dated 26th March, 2026) before this latest change.
Understanding Rule 18 – Rebate of Duty on Exported Goods
Core framework of Rule 18
Rule 18 of the Central Excise Rules, 2017 sets out the mechanism for rebate of duty in respect of goods that are exported out of India. The provision empowers the Central Government to:
- Grant rebate of:
- Duty already paid on excisable goods that are exported; or
- Duty paid on inputs/materials used in manufacturing or processing such exported goods.
- Prescribe, through separate notifications:
- Conditions to be fulfilled;
- Limitations, if any; and
- Procedural requirements for claiming rebate.
In practice, this means an assessee who pays excise duty on:
- Final goods which are then exported; or
- Inputs used in producing exported goods,
may be eligible to claim a refund (rebate) of that duty, subject to compliance with the relevant notifications and documentation requirements.
Meaning of “export” for Rule 18
The Explanation under Rule 18 sets out the definition of “export” for the purposes of rebate:
“Export”, with its grammatical variations and cognate expressions, means taking goods out of India to a place outside India and includes shipment of goods as provision or stores for use on board a ship proceeding to a foreign port or supplied to a foreign going aircraft.
Key points emerging from this definition:
- Export covers physical movement of goods outside India.
- It is not limited to cargo consignments; it also includes:
- Goods supplied as provisions or stores on board a ship heading to a foreign port.
- Goods supplied to a foreign-going aircraft.
This broad understanding is crucial for assessees who supply bunkers, catering materials, spare parts or other stores to ships and aircraft operating as foreign-going vessels.
Impact of adding Maldives and Mauritius under Rule 18
By updating the proviso to include Maldives and Mauritius, the Government has effectively: