Simplification of procedure for Bonds to be submitted to Customs
IN a recent Trade Facilitation meeting in the JN Customs, an importer raised this issue:
There is facility to give yearly Bonds to Customs, however, practically not getting implemented. We give different bonds:
End use bonds for Advance licence (Exports).
For advance licence with EODC, for 1 licence if 20 imports take place, we give 20
bonds for post imports, whereas, for new licence registration for prior import, we give only one-time bond for all imports.
Our request to give One Time Bond licence wise for post import also.
The Department replied:
In this connection, it is to inform that for import under Advance Authorization, wherein, EODC has been issued by DGFT, the requirement of executing End use bond for each import at the time of importation has been prescribed under Exemption Notification itself. As in case of clearance under Advance Authorization as per Notification 18/2015 Cus dated 01.04.2015, it is prescribed as under -
"that in respect of imports made after the discharge of export obligation in full, if facility under rule 18 (rebate of duty paid on materials used in the manufacture of resultant product) or “sub-rule (2) of rule 19 of the Central Excise Rules, 2002 or of CENVAT Credit Rules, 2004 has been availed, then the Importer shall, at the time of clearance of the imported materials furnish a bond to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, binding himself, to sue (sic use) the imported materials in his factory or in the factory of his supporting manufacturer for the manufacture of dutiable goods and to submit a certificate, from the jurisdictional Central Excise officer or from a specified chartered accountant within six months from the date of clearance of the said materials, that the imported materials have been so used:
Provided that if the importer pays additional duty of customs leviable on the imported materials but for the exemption contained herein, then the imported materials may be cleared without furnishing a bond specified in this condition and the additional duty of customs so paid shall be eligible for availing CENVAT Credit under the CENVAT Credit Rules, 2004."
However, regarding execution of single continuity End Use Bond, as advised by the trade, its modalities with respect to ICES System and further monitoring thereof are being examined by the group. Once such a system is finalized, it will be properly enforced & communicated by way of suitable Public Notice/Facility Notice.