Norms for execution of Bank Guarantee under specified export promotion schemes- Modifications
By Circular No. 58/2004-Cus. Dated 21.10.2004, Board had fixed revised norms for execution of Bond / Bank Guarantee (BG) in respect of imports made under the Advance Licence and EPCG Schemes.
Board has received representations
1. to consider the service exports at par with the physical exports and to extend the benefit of exemption from BG to the service providers who fulfill the criteria laid down in the circular ;
2. to extend the benefits of the said circular to the imports under DFIA scheme;
3. to consider the cumulative turnover of all the units of a manufacturer for the purpose of eligibility for exemption under the circular if all the units are operated under the same Importer Exporter Code (IE-Code).
Board has reacted favourably. And directs that
1. As regards extending benefits provided under para 3.1 of the circular to the service exporters on par with the exporters who are doing physical exports, it is observed that the service providers with foreign exchange earnings of Rs.50 lakhs or more during the preceding financial year and having a clean track record have already been allowed the facility of 15% BG vide Circular No.30/2005-Cus. Dated 12.7.2005.
2. Further, the service providers in the port handling sector who have been appointed as Custodians have been allowed to furnish BG @ 25% vide Circular No.49/2005-Cus. dated 29.11.2005.
3. It has now been decided to extend the facility of nil / reduced rate of bank guarantee to all the service providers who meet the criteria prescribed.
4. It has been decided that the benefits of the said circular may also be extended to the imports under DFIA scheme provided they have fulfilled the other criteria of the said circular as amended.
5. It has been decided that the combined export performance / duty payment of all the units of a manufacturer exporter operating under a single IE-Code shall be considered for extending the benefits of the said circular provided all such individual units are separately registered with the Central Excise department and they have fulfilled the other criteria of the said circular.
CBEC Circular NO. 17/2009-Cus., Dated: May 25, 2009