17 August 2022
Kindly help on IGCR Application.- We had applied for IGCR for a shipment from party with continuity bond and BG. But due to forex fluctuation the balance in bond will not suffice the differential duty. Please guide on how to top up the existing bond. And share format if available. Thank you.
06 July 2024
To top up an existing bond in the IGCR (Integrated Goods and Services Tax (IGST) Centralized Registration) application due to forex fluctuations not covering the differential duty, you typically need to follow these steps:
1. **Contact Your Bank or Financial Institution:** - Reach out to the bank or financial institution where your continuity bond is lodged. Explain the situation and request them to facilitate a top-up of the bond amount to cover the additional duty due to forex fluctuations. - Provide all necessary details, including the IGCR reference number, shipment details, and the exact amount needed for the top-up.
2. **Submit Documentation:** - Prepare and submit any required documentation as per the bank's or financial institution's requirements. This may include: - Copy of the IGCR application and reference number. - Shipment details, including the invoice showing the differential duty amount. - Any communication or correspondence related to the need for the bond top-up. - Your company's identification documents and authorization letters as needed.
3. **Format for Request:** - While specific formats can vary by institution, generally, your request should be in writing, clearly stating the purpose (top-up of bond for IGCR due to forex fluctuations), the IGCR application details, and the exact amount needed for the top-up. - Here's a basic format you can use as a guideline:
``` [Date]
To, [Bank Name/Financial Institution Name], [Address], [City, State, Zip Code].
Subject: Request for Top-Up of Continuity Bond for IGCR Application
Dear Sir/Madam,
I am writing to request a top-up of the continuity bond lodged with your bank/financial institution under the Integrated Goods and Services Tax (IGST) Centralized Registration (IGCR) application.
Application Reference Number: [Insert IGCR Reference Number] Shipment Details: [Briefly describe the shipment, invoice number, and differential duty amount due to forex fluctuations]
Due to forex fluctuations, the balance in our existing bond is insufficient to cover the differential duty amount. Therefore, we kindly request you to facilitate a top-up of the bond by [Amount in INR] to ensure compliance with customs regulations and the IGCR requirements.
Enclosed are the necessary documents for your reference:
- Copy of IGCR application and reference number. - Shipment details and invoice showing the differential duty amount. - Any other relevant documents as per your requirements.
We appreciate your prompt attention to this matter and look forward to your favorable response.
Sincerely,
[Your Name] [Your Position] [Your Company Name] [Contact Information] ```
4. **Follow-Up and Confirmation:** - Follow up with the bank or financial institution to ensure they have received your request and all required documents. - Obtain confirmation once the bond top-up has been processed and ensure that the updated bond amount reflects in your IGCR application.
5. **Compliance and Record Keeping:** - Ensure compliance with all regulatory requirements and maintain records of all communications, documents submitted, and approvals related to the bond top-up.
By following these steps and providing clear documentation, you should be able to initiate the process of topping up your continuity bond for the IGCR application effectively. If you have specific requirements or additional questions, consider consulting with a customs broker or legal advisor for tailored advice.
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