Customs – Change in Bond form - Advance License and EPCG Schemes
CUSTOMS Circular No. dated 21.10.2004 prescribes a Bond Form to be furnished for availing duty exemption under Advance License and EPCG Schemes. Condition 1 of the prescribed form of bond reads as under:
“1. I / we, the obligor(s) shall observe all the terms and conditions of the said notification.”
Now this is changed to:
“1. /we, the obligor(s) fulfil all the conditions of the said notification and shall observe and comply with all its terms and conditions.”
So earlier, they were required only to observe all the terms and conditions; now they are required to fulfill and comply with all the conditions. Now is there any difference? Is the Board afraid of some legal complication?
The reason cited is: “The benefit of zero duty EPCG scheme which is governed by notification Nos. 101/09-Cus and 102/09-Cus both dated 11.09.09 is subject to the condition that the importer should not have been issued in the year of issuance of zero duty EPCG authorization, the duty credit scrips under SHIS scheme. Since there are conditions in the EPCG notification which an authorization holder should fulfil at the time of import for being eligible for duty exemption, it has been decided to change condition 1 of the prescribed form of bond”
Does observe mean only watching? Black's Law Dictionary defines, 'observe' as to adhere to or abide by (a law).
CBEC Circular No. 40/2010 – Customs - Dated: October 28, 2010