Duty Exemption/EPCG Scheme - Guidelines for Bank Guarantee

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....he changes effected in the Duty Exemption Scheme and the Export Promotion Capital Goods (EPCG) Scheme in the revised edition of the Exim Policy published on 31st March, 1995 and the revised Handbook of Procedure, Vol. I published on 1st May, 1995, the Bond cum surety/ security under these Schemes is required to be executed by the importers with the Customs authorities. Accordingly, provisions for ....

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.... goods on merits minus additional duty actually paid). For example if basic duty on the goods imported is 50% and additional duty is 20%, the effective duty recoverable on imports shall be 50% plus 20% on 150% i.e. 80% of assessable value. Since additional duty will actually be recoverable only at the rate of 20% on assessable value (basic Customs duty being exempt), the bond to be executed shall ....

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...., such higher quantum of bank guarantee would be justified in cases where the party have huge amounts outstanding against them or have repeated cases of evasion of duty against them, etc. II. BOND UNDER E.P.C.G. SCHEME 4.1 Under E.P.C.G. Scheme also bond should be insisted upon for the difference between the duty leviable on goods on merits and the duty actually paid on importation. However,....