Revised norms for execution of Bond and Bank Guarantee under Advance License and EPCG Schemes – reg

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.... importers not only obtained Advance licenses from DGFT authorities in order to avail BG exemption, they also submitted forged/false CA certificates which were issued by the CAs without verification.  As a result it has become necessary to re-examine the facility of BG concession/exemption extended under earlier DOR Circular Nos.45/96-Cus. dated 28.8.96 and 71/98-Cus. dated 15.9.98 and incorporate additional safeguards.  Whereas 45/96 grants BG concession/exemption under Advance License and EPCG Schemes to status holders and others, 71/98 grants exemption from BG to manufacturer exporters under Advance License and EPCG Schemes.   2. The issue has been re-examined in DOR and the following revised norms are issued for t....

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.... (e)   Others 100% 3.2 BG exemption as specified in Para 3.1 above shall be admissible subject to the following conditions:   (a) The license holder has not defaulted on the export obligation in respect of any advance license/EPCG licence issued to him in the past.  The BG exemption shall stand withdrawn if DGFT or Customs comes across default in export obligation against any Advance License/EPCG License issued.    (b) For the purpose of availing BG exemption in terms of Para 3.1 above, the manufacturer exporter shall submit the export performance certificate {as specified in Para 3.1(c) } issued by jurisdictional Superintendent of Central Excise where his factory is located.  In re....

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....se BG shall only be acceptable by Customs at the port of registration of the license.   3.5 Bond/BG shall be filed for a minimum period of 3 years with an undertaking to keep the BG alive for the entire period of export obligation viz. 8+1 = 9 years or 12+1 = 13 years etc. under EPCG Scheme as the case may be.   3.6 Custom House shall properly maintain Bond/BG registers and ensure that wherever the bank guarantees are not renewed in time, recovery action is initiated by enforcement of the bank guarantee within time.  Customs shall also ensure that, wherever required, bank guarantees are renewed well in time.   3.7 In the case of subsidiary company of a parent company of a recognized status, the fa....