DEEC Scheme - Revised Norms of Execution of Bond and Bank Guarantee for Custom

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....y ordinarily leviable on the goods but for the exemption (i.e. basic duty and additional duty leviable on the goods on merits minus additional duty actually paid). For example, if basic duty on the imported goods is 50% and additional duty is 20%, the effective duty recoverable on imports shall be 50% plus 20% on 50% i.e. 80% of assessable value. Since additional duly will actually be recoverable only at the rate of 20% of assessable value (basic Customs duty being exempt), the bond to be executed shall be for the difference between 80% and 20% i.e. 60% of the assessable value. Surety with the Bond should be in the form of Bank Guarantee or Cash Security. A guarantee from a financial institution like, IDBI, ICICI, UTI etc. may also be accep....

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....t House & PSU (b) Export House & PSU   Zero Duty EPCG 25%, except where the Committee of Secretaries/EPCG Committee fixes a lower Bank Guarantee/Cash Security. (c) Other manufacturer-exporter (a) (b) 15 % EPCG Zero Duty 50% 50% (d) Service Providers (a) 15% EPCG 50% 3.2 In cases where lower Bank Guarantee is fixed in respect of Category (b) of exporters by the COS/EPCG Committee the Commissioners of Customs if finds that the importer has committed serious violation of Customs Act or is guilty of evasion of duty, he may refer the case to the licensing authority for reconsideration. Such cases may also be brought to the notice of the Ministry. 3.3 Where an importer so requests, a Bank Guarantee may be taken even co....