BG - Revised norms for execution of Bond and Bank Guarantee under Advance License and EPCG Schemes.

Document Text

Circular No. 79/2003-Cus. 4th September, 2003, (2ndAmendment to Circular No.48/03-Cus. dated 6.6.2003). F.No.605/41/2003-DBK Government of India Ministry of Finance Department of Revenue Sub: Revised norms for execution of Bond and Bank Guarantee under Advance License and EPCG Schemes – reg. Kind attention is invited to DOR Circular Nos.48/2003-Cus. dated 6.6.2003 and 74/2003-Cus. dated 21.8.2003 in terms of which revised norms for execution of Bond/BG under Advance License and EPCG Schemes have been notified. In terms of Para 2.1 of the DOR Circular No. 74/2003-Cus. dated21.8.2003 it was inter-alia clarified that Bond shall be backed by a bank guarantee or cash security or surety and that in respect of importers specified in Paras 2(a) to (d) of the said Circular (excepting in the case of public sector undertakings) who are eligible for BG exemption, the Bond shall be backed by a surety. 2. After issue of DOR Circular No.74/2003-Cus., trade has represented that furnishing of such surety against Bond by Status Holders and other established exporters, who are having substantial exports, becomes difficult on account of the large volume of import undertaken by and EPCG Schemes. Further, it also increases the transaction cost. This issue has been discussed again with DGFT/MOC who has strongly recommended that considering the practical problem in furnishing such surety by status holders and large exporters operating under EPCG/Advance License Schemes, it would be advisable to permit furnishing of a bond without surety. them under Advance License 3. Considering that the existing provision of furnishing of Bond/BG on Central Excise side also provide for furnishing of bond without surety in the case of status holders and manufacturer exporters, it is clarified that in respect of category of importers specified in paras 2(a) to (d) of DOR Circular No.74/2003-Cus. dated 21.8.2003 (including public sector undertakings), a bond without surety shall be accepted for the purpose of permitting import of goods under Advance License/EPCG Schemes. 4. All other conditions/checks specified in DOR Circular Nos.48/2003-Cus. dated 6.6.2003 read with Circular No.74/2003-Cus. dated 21.8.2003 shall continue to apply for the purpose of execution of Bond/BG under Advance License/EPCG Schemes. 5. Suitable Standing Order and Public Notice for the guidance of staff and trade may kindly be issued. 6. Receipt of the Circular may kindly be acknowledged. R.K. Talajia Officer on Special Duty (DBK)

HS Codes Referenced

Need the current duty rate?

Calculate the full duty cascade — BCD, SWS, IGST and trade remedies — for any HS code, free.