Revised norms for execution of Bond and Bank Guarantee under Advance Licence and EPCG Schemes - reg.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....orged/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 28.08.96 and 71/98-Cus dated 15.9.98 and incorporate additional safeguards. Whereas 45/96 grants BG concession/exemption under Advance Licence and EPCG Schemes to status holders and others 71/98 grants exemption from BG to manufacture exporters under Advance Licence and EPCG Scheme. 2. The issue has been re-examined in DOR and the following revised norms are issued for the purpose of availing exemption from BG under Advance Licence and EPCG Schemes in amendment of earlier DOR Circular Nos. 45/96-Cus dated 28.8.96 an....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....BG exemption shall stand withdrawn if DGFT or Customs comes across default in export obligation against any Advance Licence/EPCG Licence issued.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 respect of new manufacturer export who have paid central excise duty of ₹ 1 crore or more during the preceding financial year also (vide Para 3.1 (d) the relevant certificate shall be issued by jurisdictional Superintendent of Central Excise where the factory is located. c) The Licence holder should not have been penalized unde....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... BG/Cash security/any other guarantee from financial institutions like IDBI, ICICI, UTI, etc. shall also be available. The facility, however, shall be subject to the following conditions :- i) The parent company shall necessarily have more than 50% share holding in the subsidiary company. ii) The bond shall be jointly signed by the parent company as well as the subsidiary company and shall be executed alongwith BG/Cash security/or guarantee from financial institutions like IDBI, ICICI, UTI etc. wherever applicable in terms of criteria laid down. The guarantee shall be in relation to terms and conditions of the Joint Bond. iii) The parent company shall stand surety for the subsidiary company that in the event subsidiary company fails t....