VALIDITY OF B-17 BOND

[SURYAKANT MITHBAVKAR]

One of our customer issued CT-3 to clear the materials. On date of despatch we noticed that his bond validity is over five days before. We contacted to party regd tha same and received copy of letter of acceptance of B-17 Bond under different Bond number that earlier when he issued CT-3. Can we clear the material on basis of earlier CT-3 on today since Customer done renewal of B-17 Bond with different Bond Number. pl. advice

[Snehal Kulkarni]

Since the Customer had issued a CT-3 certificate, then obvisously he a EOU. In case of EOU, a general bond-B17 of 'X' amount is executed at the time of taking the LoP.

If the date LOP is expired, EOU have to renew that Bond.

In this case, the Bond was expired at the time of issuance of the CT-3 and susequently it is being renewed, you may clear the goods under exemption ensuring the receipt of re-warehousing certificate within 90 days from the date of clearance.

 

 

 

 

 

[SURYAKANT MITHBAVKAR]

Party has renew the B-17 Bond under different Bond numbers and saying that we can clear material under CT-3 (Which is issued earlier under different Bond Number)

Can we clear the material under previous CT-3

[Snehal Kulkarni]

Please note a B-17 Bond is given by them at the time of set up of the EOU Unit. The bond was accepted at that moment. Renewal is the formality.

The Bond will be same only the File No will be different.

Being the LoP is in force, you may despatch the material on the same CT-3. There is no need to obtain the separate CT-3.

AI Summary

B-17 bond validity: renewal under a different bond number permits clearance under the original CT-3 if LoP remains in force. Where an EOU's original B-17 bond expired at despatch but was subsequently renewed under a different bond number, renewal is a formality and, provided the Letter of Permission remains in force, the goods may be cleared on the original CT-3 without issuing a fresh CT-3; ensure receipt of the re-warehousing certificate within the prescribed period after clearance.