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

AI Summary

Debate Over Bank Guarantee for EPCG Scheme: 15% Suggested, But Some Authorities Demand 100%. Clarification Needed. An individual inquired about the bank guarantee percentage required for the Export Promotion Capital Goods (EPCG) scheme, particularly when the importer is new but registered with excise and as a Manufacturer Exporter. The Board circular suggests a 15% bank guarantee, but some DGFT authorities impose a 100% guarantee. Respondents discussed that while customs may require 100% until export obligations are met, banks might cap the actual blocked capital at 15%. Concerns were raised about the financial strain of a 100% guarantee, with suggestions to negotiate with banks or pay duties instead. Participants sought clarification on applicable circulars and notifications.