AUTO RENEWAL CLAUSE IN BG BOND

[Asked by Guest]

Dear Sirs,

We have submitted Provisional BG Bond to customs for differential duty and still it is going on.

Due date for renewal is 2019, but customs are insisting us to amend the BG bond with a auto renewal clause,

but our banker (SBI) is not accepting.

Please check and advise whether such clause is available in any of notifications or circulars or any other documented procedure.

[KIRTIKUMAR PUROHIT]

proper officer can isis to add any claused when duty liabilityof will remain continue; Banker may accept to grant auto renuwal clause but SBI not accepting this than there is no option except change the Banker, because every banker have own policy so banker could denied.

AI Summary

Auto-renewal clause in bank guarantee: customs may require it but banks may refuse on policy grounds.
Customs may require amendment of a provisional bank guarantee to include an auto-renewal clause to preserve duty liability; acceptance of such a clause by the issuing bank is subject to the bank's internal policy, and refusal by the current banker necessitates obtaining a guarantee from another bank willing to accept the clause.