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of <h1>Platinum Ingots Re-export Approved: Bond and Bank Guarantee Required, Subject to Favorable Origin Verification by 2024.</h1> <h3>Equidem Enterprise Pvt. Ltd. Versus The Deputy Commissioner of Customs, Airport Special Cargo Commissionarate Mumbai Customs Zone-III & Ors.</h3> The HC resolved the petition by allowing the re-export of Platinum Ingots, subject to conditions. The petitioner agreed to furnish a bond for the full ... Imposition of a condition of furnishing bank guarantee to the extent of 10% of the value of Platinum Ingots imported by petitioner - HELD THAT:- The respondents do not seem to have any objection insofar as description of the goods is concerned. Respondents also do not seem to have any issue so far as it relates to change at CTH level in the final product. According to respondents, the goods imported meets the CTH criteria. The problem seems to be only as regards 3% value addition for non-originating goods. It is respondents’ case that the value addition of 3% shown to have been achieved appears to be very high and therefore, to check the genuinity of the value addition claim, department has decided to call for verification of the details claimed in the country of origin certificate. Upon furnishing the bank guarantee, respondents shall forthwith permit re-export of the Platinum Ingots to the extent of value of bank guarantee given covered under 19 bills of entry filed by petitioner - Respondents are directed to complete the verification/ investigation at the earliest on or before 31st October 2024. Petition disposed off. Issues:Challenge to decision imposing bank guarantee condition for re-export of Platinum Ingots imported by petitioner.Analysis:The petitioner challenged the decision requiring a bank guarantee for re-exporting Platinum Ingots imported and covered under 19 bills of entry. The respondent specified conditions for consignments, including treating an alloy with 2% or more platinum as a platinum alloy and meeting origin criteria under Product Specific Rule and 3% value addition for non-originating goods.The respondents verified compliance with conditions, confirming that the goods were platinum alloy, and discussing the origin criteria and value addition. The process of manufacture was scrutinized, focusing on the simple melting process used by the petitioner. The issue arose regarding the claimed high value addition of 3% for non-originating goods, leading to a decision to verify the details in the country of origin certificate.The petitioner agreed to comply with the conditions, undertaking to furnish a bond for the full value of the goods and a bank guarantee for 10% of the value. The bank guarantee, to be provided by a Scheduled Bank, would be valid until December 31, 2024. Upon furnishing the bank guarantee, re-export of the Platinum Ingots would be permitted.The court directed the respondents to complete the verification by October 31, 2024, urging prompt attention to a communication for origin certificate verification. If the report is favorable, the bank guarantee would be canceled and returned upon request. In case of an adverse report, the petitioner would need to renew the bank guarantee until adjudication proceedings are concluded.The judgment clarified that no observations were made on the merits of the matter, keeping all rights and contentions open. The petition was disposed of, concluding the legal proceedings.
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