Warehousing - Bank guarantee/security for inter-city transfer of goods from one bonded warehouse to another - Exemption to Central and State Public Sector undertakings.

Document Text

Circular No. 42/2007-Customs Government of India Ministry of Finance Department of Revenue Central Board of Excise & Customs 30th November, 2007. Subject: Bank guarantee/security for inter-city transfer of goods from one bonded warehouse to another - Exemption to Central and State Public Sector undertakings. I am directed to refer to Board's Circular No. 68/95, dated 15-6-95 and No. 99/95, dated 20-9-95 (issued from F. No. 473/61/94-DC) laying down the procedures for appointment of Public Bonded Warehouses and licensing of Private Bonded Warehouses under Section 57 and 58 of the Customs et,1962. 2. In this context, a reference has been received from M/s. India Tourism Development Corporation Limited, a Government of India Undertaking, seeking exemption from furnishing Bank guarantee for inter-city transfer of goods from one bonded warehouse to another. 3. The matter has been examined in the Board, Para 5(iii) of Board's circular No. 99/95 dated 20-9-95, dealing with the requirement of transit bond or transfer of bonds to interiors, provides that the duty should be secured by a transit bond backed by a Bank guarantee or a cash security for 50% and 25% of the duty involved in respect of sensitive and non-sensitive goods respectively. Further, Commissioners may demand Bank guarantee/security upto the value of duty amount, if they consider it necessary in certain cases. 4. As a measure of relaxation to the Central/State Government undertakings, as has been done in case of requirement of Bank guarantee/ security in similar other matter like, transshipment of goods from Gateway ports to Feeder ports/ICDs/CFSs [Circular No. 78/2001-Cus., dated 7- 12-2001 refers] it is clarified that all Central and State Public Sector Undertakings shall be exempt from furnishing Bank guarantee or other form of security for inter-city transfer of goods from one bonded warehouse to another, including transfer of goods from Sea/Dryland port. The transit Bond would, however, be continued to be executed. 5. The contents of this circular may be brought to the notice of the field formations and the Trade under your jurisdiction. 6. The receipt of this circular may please be acknowledged.

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