Assessment under Project Import Regulations, 1986 - Requirement of cash security in lieu of bank guarantee.

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....ecurity in lieu of bank guarantee. I am directed to refer Board's Circular No. 89 dated 9-8-1995 issued from F.No. 528/ 73/ 92- (TU), in partial modification of letter F.No.521/192/ 90-Cus.(TU) dated 9.1.1992, advising Customs Houses / Commissionerates to take cash security equivalent to 2% of the CIF value of goods sought to be imported, subject to a maximum of Rs. 50 lakhs, at the time of regis....

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....ion in import duty and the inordinate delay associated with finalisation of the said project imports, it has been decided to do away with the practice of taking cash security. Henceforth, subject to a maximum of Rs. 1 Crore, only a bank guarantee, equivalent to 2% of the CIF value of goods sought to be imported, would be taken at the time of registration of the Project Contract under Project Impor....