Warehousing - Transfer of imported goods for re-warehousing from major ports to inland warehousing stations need for adequate security for customs duty.

Document Text

F. No. 473/25/90-Cus. VII 30-09-91 Sub: - Transfer of imported goods for re-warehousing from major ports to inland warehousing stations need for adequate security for customs duty - Regarding. I am directed to refer to the correspondence resting with Board's letter of even number dated 20/11/1990 on the subject cited above and to say that the following guidelines may be kept in view while releasing the requirements of 100% Bank Guarantee in permitting transfer of imported goods in bond to inland warehousing stations:- (1) 15% bank guarantee may be from public sector undertakings/State/Central Government undertaking, 100% EOUs and Export Processing Zones, Manufacture-in-bond units and ship stores, along with the transit bond equal to the amount of duty on the condition that re-warehousing certificates in respect of the consignments cleared should be produced within three weeks of the dispatch failing which next consignment may be allowed only on transit bond supported by 1 00% bank guarantee. insisted (2) Regular importers who have not defaulted in producing re- warehousing certificate in the past may be allowed to furnish bank guarantee equal to 25% of the duty amount along with transit bond on the same conditions mentioned above. (3) In case of importers of heavy consignments or in bulk, Collectors could consider accepting a standard bank guarantee. This running guarantee should be of adequate amount, which will be treated as a security for all the transfers that are likely to be made, during the period of validity of bank guarantee. The validity period of the bank guarantee should be renewed immediately before expiry. (4) For imports of highly sensitive nature where the rates of duty are very high or which command high premium in the market the Collectors may decide on the requirement of bank guarantee depending on the reputation of the importer. In this case restriction regarding bank guarantee equal to 25% would not apply and the Collectors may exercise their discretion to decide upon the bank guarantee. (5) Established Export Houses/Trading Houses may be allowed to furnish 15% bank guarantee instead of 25% bank guarantee. (6) Wherever bank guarantee have been furnished, the Collectors concerned should monitor their validity and ensure that the cancelled bank guarantees are returned to the importers within ten days of their submitting the re-warehousing certificate to the customs. 2. The Board's instructions dated 18/05/1990 and 20/11/1990, may be considered modified to the above extent.

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