EPCG exemption

[sukhvinder singh]

Dear Sir ,

We are registered under excise as manufacture still not start the production , we want to import the Capital goods under EPCG scheme at Zero rate . Department is demanding 100% bank gurantee at the time of Clearance as we are not manufacture or not export from last three year .

Please provide the relevent notification or circullar to save the said bank gurantee

[YAGAY and SUN]

No way out.  You would have to furnish 100% Bank Gurantee.

AI Summary

EPCG bank guarantee requirement: importers without active production or recent exports must furnish full bank guarantee for clearance.
A full bank guarantee is required for import of capital goods under the EPCG scheme where the importer is registered as an excise manufacturer but has not started production and lacks recent export activity; customs will demand the guarantee at clearance and no circular was identified to avoid that requirement.