TaxTMI 
TaxTMI 
DEEC Scheme / EPCG Scheme - Bond/ Bank Guarantee- Group Company Defined and Conditions for Corporate Guarantee Specified
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....#39;s letter F.No. 605/ 75 (A) / 95-DBK dated 8th August, 1997 regarding revised Norms for execution of Bond and Bank Guarantee under DEEC Scheme. 2. Representations have been received from Customs houses and from the exporting community regarding the scope of some of the terms used in the Circular viz. "Flagship Company" and Group Companies. Doubts have been raised whether the term "Flagship Com....
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....t be a Super Star Trading House, Trading House etc. 5. For the purpose of identifying that both Companies are Group Companies, i.e. the Company furnishing the Corporate Guarantee (CG) and Company on whose behalf the CG is executed the following may be satisfied. 6. First of all a Group Company must be one which is under the same management, i.e. in which any of the following ingredients is satis....
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....an authorised Company Secretary/ Chartered Accountant that the Company in whose favour CG is given is a Group Company. The Certificate should also indicate the relevant criterion by which they come under the same management/ Group. 8. The Company executing the CG must give the Guarantee only after the Company's Board passes a Resolution under Section 370 of the Companies Act. A copy of the Re....
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....d, and if necessary, a fresh CG be obtained. 13. The Corporate Guarantee may be accepted as a substitute for a Bank Guarantee even in respect of Capital Goods cleared in the past against a EPCG Licence subject to all the above-mentioned conditions being completed to the satisfaction of the commissioner of Customs. 14. Where in any particular case, Committee of Secretaries prescribes a BG to be f....