Bank guarantee exemption requires affidavit confirming no penalization for specified customs offences, subject to random verification. Exemption from furnishing a Bank Guarantee under AA/DFIA/EPCG requires that the license holder should not have been penalized during the previous three financial years for specified customs, central excise, service tax offences-including duty evasion, mis-declaration, clandestine removal, wrongful availment of credits or rebates, non-deposit of collected duties, and non-registration with intent to evade-or under FEMA or the Foreign Trade Act; applicants must submit an affidavit declaring compliance, subject to random verification by Customs.