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.
Customs demands auto-renewal clause in bank guarantee; SBI refusal may require changing banks for compliance. A party submitted a provisional bank guarantee (BG) bond to customs for differential duty, with a renewal due in 2019. Customs requested an amendment to include an auto-renewal clause, but the bank (SBI) refused. The party sought advice on whether such a clause is mandated by any notification or procedure. The response indicated that while a proper officer can insist on adding clauses for ongoing duty liabilities, if SBI does not accept the auto-renewal clause, the only option may be to change banks, as banks have their own policies and may deny such requests. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
