Bank Guarantee Percentage for EPCG

[PANKAJ MAHESHWARI]

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 48/2017cs its 5 % and 25% imposing BG on Licence itself

My question is that 5% and 25% BG applicable on EPCG scheme or Advance authorisation scheme

what are the relevant judgments or circular or public notice for the BG on EPCG scheme and advance authorisation scheme

Customs now started arguing that if such endorsement is there we will take 100 % BG and 15% 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

Customs BG Rates for EPCG Scheme: New Exporters Face 100% BG, AEOs Get Concessions Based on Tier. A discussion on a forum addresses the bank guarantee (BG) percentage imposed by customs for the Export Promotion Capital Goods (EPCG) scheme. An inquiry is made about whether the 5% and 25% BG rates apply to EPCG or the Advance Authorization scheme, referencing specific circulars and notices. A response suggests that for new exporters, a 100% BG may be required for EPCG, with concessions available for Authorized Economic Operators based on their tier. It also mentions that banks might offer a 100% BG by retaining only 15% of the amount.