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

Bank guarantee percentage: endorsements may lead customs to demand full guarantees despite a Board circular prescribing a lower standard.
Dispute concerns whether Customs may require a higher bank guarantee where a DGFT licence or its endorsement records a preference for a full guarantee, despite Board Circular 58/2004 prescribing a lower guarantee for exporters with excise registration and SSI/RCMC status. Customs has begun enforcing the endorsement at clearance, creating cashflow and operational difficulties; banks may supply guarantees subject to margins or capped blocked funds, but importers seek authoritative clarification on which instrument controls enforcement.