Bond quantum under export authorisation excludes penal interest, but bonds must include a condition for interest and charges on default. Clarifies that the bond and Bank Guarantee amounts under Advance Authorization and EPCG schemes must be limited to the duty ordinarily leviable on the goods but for the exemption; interest, being penal and payable only on default, should not be added to the bond/BG quantum. Bonds must nonetheless include a condition that interest and other charges will be payable by the authorization holder in case of non-compliance, and trade notices and internal instructions should be issued to implement the clarification.
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Bond quantum under export authorisation excludes penal interest, but bonds must include a condition for interest and charges on default.
Clarifies that the bond and Bank Guarantee amounts under Advance Authorization and EPCG schemes must be limited to the duty ordinarily leviable on the goods but for the exemption; interest, being penal and payable only on default, should not be added to the bond/BG quantum. Bonds must nonetheless include a condition that interest and other charges will be payable by the authorization holder in case of non-compliance, and trade notices and internal instructions should be issued to implement the clarification.
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