Bank Guarantee Percentage for EPCG

[kunal umarani]

Sir ,

What would be the bank guarantee percentage customs may impose for EPCG if importer in new but registered with excise as well as having permanent excise registration also SSI and RCMC as Manufacturer Exporter

As per Board circular 58/2004 its 15 % but some DGFT licencing authorities imposing preferably 100 % BG on Licence itself

My question is if he has endorsed on licence as 100 % ( Preferably ) who is the final deciding authority Customs or DGFT and what are the relevant judgments or circular or public notice for the same

Customs now started arguing that if such endorsement is there we will take 100 % BG

Pl refer pune DGFT Trade Notice No. 15/AM16 dated 09.06.2016 and

Policy Circular No. 35(RE-2000)/2000-2001 Dated: 19^th December, 2000

Awaiting reply

[Kishan Barai]

Respected Sir,

According to me for startups 100% BG would be imposed by customs until export obligation is fulfilled.

But,

Many bank provide 100% BG by capping only 15% of your amount.

For example, If customs asks for 100000 BG then many bank provide that with only 15,000 actual blocked capital by Bank.

It is totally depend on bank & your relations with bank manager.

[kunal umarani]

Dear Mr Kishan ,

Thanks for your valuable feedback ..

I have one doubt . ?

Any circular or notification which mention imposition of 100 % BG

Importer is standstill on circular no 58/2004 customs

As he is having central excise ( Permanent ) so 15 % BG is applicable

How to explain him ?

His bank not allowing for 15 % margin for BG

[Gopikishan Kabra]

We r facing a major problem due to sudden action of 100 percent bg our machines r held there from last 20 days how to arrange 85 percent fund for additional bg it would be hard to import machineries. Is there any way to go with 15 percent bg

[Gopikishan Kabra]

Is there any update regarding bank guarantee ? what to do if didnt agree on 15 percent bg ? how to arrange additional guarantee or funds to pay duties there is huge charges for 00 percent bank guarantee its better to pay duty. but how to arrange additional funds projects cant afford additional cost..??????????/