Amendment to Guidance Note in Appendix 25B of HBP

By Vijay Kumar

DGFT has amended Guidance Notes 1,4 and 5 to Appendix 25B of the HBP. Appendix 25B is the Format of Legal Undertaking. Note 1 before amendment read:

The Bank Guarantee /Legal Agreement is to be executed and signed by the importer/exporter (party) and the surety Bank (Guarantor) on a non-judicial stamp paper of the minimum value of Rs. 15/-, or any amount as may be prescribed by the concerned State Government under the Indian Stamp Act, 1899 or State Act, as the case may be.

This is now amended to read as:

"The Bank Guarantee / Legal Agreement is to be executed by the surety Bank (Guarantor)/ importer/exporter (party) on a non-judicial stamp paper an amount as may be prescribed by the concerned State Government under the Indian Stamp Act, 1899 or State act, as the case may be."

Also in Notes 4 and 5, in the Phrase B.G/LUT , B.G is deleted and only LUT remains.

The effect of this amendment is explained by DGFT as "Bank Guarantee (B.G.) would require execution by the surety Bank (Guarantor) and LUT by Exporter/Importer"

DGFT Public Notice No 29 (RE-2012)/2009-14 Dated 12.11.2012.