Letter of Undertaking permits status holder manufacturer exporters to replace bank guarantees for export warehousing subject to time-limited conditions. Warehousing is allowed initially up to six months, extendable by the Assistant/Deputy Commissioner in six month increments, with a maximum tenure of three years; goods remaining beyond allowed warehousing are deemed cleared for home consumption and attract duty and interest at the prescribed rate. Status Holder manufacturer exporters with a clean track record may submit a Letter of Undertaking instead of a Bank Guarantee for an initial warehousing period up to six months, extendable once, but further extensions require furnishing the bond security previously prescribed.