Bank Gurantee under EPCG

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Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2011 We are an Manufacturing organization and recently we have imported a CNC Punching machine from UK which costed Around 32 Lakhs (Used Machine). I just needed to ask how much amount of Bank Guarantee Will i be liable to pay. I am Completely Confused Right now because i have got mixed opinions about that. SO please if u can help me.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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07 July 2011 IF YOU AN EXPORT HOUSE NO NEED TO BANK GUARANTEE.

FOR MORE INFO:-
http://www.ieport.com/Cus2003/Cir/cir48.htm

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Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2011 No WE are not an Export house.We are a Partnership firm. As per the circular i think we obligate to the 100% bank guarantee slab.

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RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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07 July 2011 It has been provided in paragraph 2.27.1. of the said foreign trade Policy that all exporters having an export turnover of at least Rs 5 crores in the current or preceding financial year and having a good track record of three years of exports will be exempted from furnishing a Bank Guarantee (BG) for any of the Schemes under the Policy and may furnish a LUT in lieu of BG. Further, paragraph 2.20 of the Hand Book of Procedures (Vol. I) prescribes that in cases of direct import, before clearance of goods through Customs, the licence holder shall execute a legal undertaking (LUT)/Bank Guarantee (BG) with the Customs authorities in the manner as may be prescribed by them.

In the light of these Policy provisions, the issue regarding execution of Bond/BG under DEEC and EPCG Schemes has been reviewed by the Board and in supersession of earlier DOR Circular Nos. 45/96-Cus., dated 28.8.96, 71/98-Cus., dated 15.9.98, 48/2003-Cus., dated 6.6.2003, 74/2003-Cus., dated 21.8.2003 and 79/2003-Cus., dated 4.9.2003, the following revised norms are prescribed for the purpose of furnishing Bond and BG under the said Schemes.

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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07 July 2011 The bond under Advance License and EPCG Schemes shall be furnished in the format annexed to this Circular. The bond shall cover the duty ordinarily leviable on the goods but for the exemption. The bond shall be backed by a Bank Guarantee or cash security as per the norms prescribed in the following paragraph. Guarantee from a financial institution like IDBI, ICICI, UTI etc. may also be accepted in lieu of Bank Guarantee.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 July 2011 Thanks for the help

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
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07 July 2011 WELCOME IN CA CLUB INDIA...