Clarification - MF(DR)Circular No.42/2007

[Guest]

MF(DR)Circular No.42/2007 Customs dated 30.11.2007 granting exemption from furnishing of Bank Gaurantee to Central/State Government undertaing. My query is; Whether transfer of goods from Mumbai Port to warehouse at Gujarat is covered under the above circular or not? Relevant extract of the circular is reproduced as under: it is clarified that all Central and State Public Sector Undertakings shall be exempt from furnishing Bank guarantee or other form of security for inter-city transfer of goods from one bonded warehouse to another, including transfer of goods from Sea/ Dryland port. The transit would, however, be continued to be executed.

AI Summary

Transfer from Mumbai Port to Gujarat Warehouse Requires Bank Guarantee under MF(DR) Circular No.42/2007 A query was raised regarding whether the transfer of goods from Mumbai Port to a warehouse in Gujarat is exempt from furnishing a bank guarantee under MF(DR) Circular No.42/2007, which grants such exemptions to Central and State Public Sector Undertakings for inter-city transfers. The circular specifies that exemptions apply to transfers between bonded warehouses, including those from sea or dryland ports. The response clarified that the transfer in question does not qualify for the exemption, indicating that a bank guarantee is still required for this specific transfer.