Bank guarantee for advance licence - clarification
As per para 3.1 of the Customs Circular No. 58/2004, the Bank Guarantee/cash security shall be taken as per the following norms for the purpose of permitting clearance of imported goods under Advance License/EPCG Schemes.
Category of Importer | Quantum of Bank Guarantee/cash security |
|---|---|
(a) All exporters who have an export turnover (physical exports) of Rs 5 Crores in current or preceding financial year and having a good track record of three years of exports | Nil |
(b) Public Sector Undertaking | Nil |
(c) Star Export House | Nil |
(d) Manufacturer exporters registered with Central Excise, who have been exporting during the previous two financial years and have minimum export of Rs. 1 crore or more during the preceding financial year. | Nil |
(e) Manufacturer exporters registered with Central Excise, who have paidcentral excise duty of Rs.1 crore or more during the preceding financial year. | Nil |
(f) Manufacturer exporters who are not covered under (a), (b),(c),(d) & (e) above. | 25% |
(g) Others | 100% |
As per par 10 of the Circular, BG exemption specified in para 3.1 above shall also be available in respect of past licenses where license holder had earlier filed BG but as on date he is entitled for BG exemption.
The Board now clarifies that
These concessions are also available for his past licences. Under the circumstances, in case a licence holder has executed 100% 15% BG at the time of registration and he subsequently attains a status which entitles him for full/partial BG exemption under Para 3.1 of the Circular, the Custom House may return the earlier executed higher BG and accept the lesser/nil BG afresh, if the exporter makes such request. This facility may, however, be extended only if the licence holder fulfills the conditions of Para 3.2 of the Circular. These conditions would ensure that while genuine exporters would be facilitated, the unscrupulous exporters/defaulters would be kept under check.
MFDR letter No. D.O.F. NO. Dated : January 30, 2008