bond for concessional rate of duty

[vasudevan konda]

Sir, we have executed Bond for import of goods at concessional rate of duty u/n 57/2017.

We have executed bond for Rs.one crore. Can we use the same bond by taking credit of duty of the goods imported and used in the manufacturing activity, for the purpose of further import of goods. The Department is wary of the use and they demand to execute Bond against consignment basis. Please give remedial advice.

Vasudevan konda

9727706525

[YAGAY and SUN]

If it is a running bond then you can use it provided the existing imports had not exhausted the bond value/duty amount as mentioned, otherwise you have to execute a fresh bond along with BG if you are not AEO Status Holder or do not have Status Holder Certificate as mentioned in FTP.

AI Summary

Concessional duty bond: running bond may be used until its secured value is exhausted; fresh bond and BG required otherwise.
A bond executed for import at concessional rate of duty can be used as a running bond until the bond's secured duty value is exhausted; once exhausted a fresh bond must be executed and, unless the importer holds Authorised Economic Operator or Status Holder Certificate under the Foreign Trade Policy, a bank guarantee will also be required.