Clarifications in respect of quantum of Bond and Bank Guarantee (BG) under Advance Authorization and Export Promotion Capital Goods schemes— reg.

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....eg. I am directed to invite your attention to the above mentioned subject and to say that, doubts have been raised, whether the amount of Bond and Bank Guarantee(BG) to be executed under Advance Authorization and Export Promotion Capital Goods schemes, include the interest amount also. 2. The matter has been examined by the Board. Para 3 of Board's Circular No.58/2004-Cus. dated 21.10.2004 state....

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....specified in condition 4 of the Bond format enclosed to the circular No.58/2004-Cus. 3. Accordingly, it is clarified that the Bond under Para 3 of Circular No.58/2004-Cus. shall cover only the duty ordinarily leviable on the goods but for the exemption. Similar analogy will apply for quantification of the BG amount. 4. However, the bond executed under both the schemes should include a condition ....