Bank guarantee exemption: prior penalization bars exemption; affidavit and random verification required before granting exemption. Bank guarantee exemption for Advance Authorization, DFIA and EPCG holders requires the licensee not to have been penalized in the previous three financial years for specified substantive violations (including mis-declaration, clandestine removal, fraudulent availing of credits or incentives, failure to deposit collected duties, non-registration to evade tax, or comparable foreign exchange/foreign trade bookings). Licensees may be asked to furnish an affidavit and Commissioners must randomly cross-check affidavits with field formations; other para 3.2 conditions remain unchanged.