Customs - Board's Circulars04.12.1995
Export - Subsidiaries of Export Houses - Joint Bond facility extended.
Document Text
F.No. 605/241/95-DBK Circular No. 123/95-Cus. Dated 4/12/95 Government of India, Ministry of Finance Department of Revenue, New Delhi Subject: Amendment in Circular No. 52/95 allowing the relaxation of execution of bond/ bank guarantee by the parent company on behalf the subsidiary company. A representation has been received by the Ministry to extend the facility of execution of BG/ Bond to the subsidiary of export house/ trading house/ star trading house/ super star trading house as has been made available to them under Circular No. 52/ Customs & 97/ 95 Customs issued from F.No. 605/75/95- DBK. the representationist that such facility will be in conformity with the provisions of para 103(i) (d) of the Handbook of Procedures Volume- I. represented by It has been The matter has been considered by the Ministry and it has been decided to exit the benefit of joint bond/ bank guarantee which shall be signed both to the parent company as well as the subsidiary company holding the licence. The facility, however, will be subject to the following conditions:- (1) The parent company should necessarily have more than 50% share holding in the subsidiary company. (2) The facility will be subject to the fact that both the parent company and the subsidiary company should have common Board of Directors. This fact can be verified from the Article of Association/ memorandum of Association of the parent company and the subsidiary
Source: Government of India — Customs - Board's Circulars, dated 04.12.1995. Text is machine-extracted for reference; the officially published version prevails. Not legal advice.
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