Clarification on Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017-reg.

Security requirements for concessional import duty relaxed; reduced bank guarantee and surety norms with compliance conditions.

Clarification prescribes reduced security and surety norms under the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017: government entities are exempt from bank guarantee and surety; Authorized Economic Operators and compliant GST-registered manufacturers/service providers must give surety or, if unable, furnish bank guarantee/cash security up to five percent of duty foregone; other importers must furnish bank guarantee/cash security up to twenty-five percent. Higher security may be required by Assistant/Deputy Commissioner with Commissioner approval up to full duty foregone. Relaxations do not apply where prosecution was initiated under central or GST laws in the preceding three financial years. Consignment-wise guarantees and self-renewal clauses are permitted.