F.No.305/60/98-FTT

Circular No. 59/99-Cus
dated 6/9/1999

Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs, New Delhi

Subject : Private / Public Bonded Warehouses for Diamonds / Coloured Gemstones under paragraph 8.13 of Exim Policy 1997-2002 – Clarification – regarding.

    I am directed to refer to Board”s Circular No. 47/99-Cus., dated the 27th July, 1999 issued from F.No. 305/60/98-FTT on the above subject.

2.  After issued of the said circular, References have been received, both from trade and the Ministry of Commerce, on the issue of furnishing of Bank Guarantee / Cash Deposit.  It has been stated that the requirement of cash deposit or Bank Guarantee equal to 50% of the duty liability along with the Bond as security is not conductive to export growth of the Indian diamond industry.

3.  The matter has been examined in consultation with the Ministry of Commerce and it has been decided that the following categories of exporters may be exempt from the requirement of furnishing any bank guarantee / cash security or surety, namely-

(a) Exporters holding the status of Super Star Trading House / Star Trading House / Trading House / Export House under the EXIM Policy 1997-2002.

(b) Exporters having post export performance as given at Serial No. 3 of the table given in the Paragraph 8.14 of Handbook of Procedure, Vol.I, 1997-2002 and where the value of import under the provision of Paid 8.13 of EXIM policy does not exceed two times of FOB value of exports of Cut & Polished Diamond, made during the preceding licensing year.

(c) Overseas companies with the branch office in India having an average annual export turnover of not less than Rs. 150 crores in the preceeding three licensing year. For the aforesaid three categories of exporters, Legal undertaking (LUT) in lieu of bank guarantee / cash security may be obtained. In other cases i.e. other than (a) to (c) above, the requirement of Bank Guarantee / Cash Deposit would be 25% in lieu of 50% of the duty fixed earlier.

4.  Board”s Circular No. 47/99-Cus, dated 27/7/99, stands modified to the above extent.

5. Wide publicity may be given by issue of a Public Notice in this regard.

6. Kindly acknowledge receipt of this Circular.  Difficulties, if any, faced in the implementation of the above changes, may be brought to the notice of the Board at an early date.

Sd/-
(C.P.Goyal)
Sr. Technical Officer (TU)

More Under Custom Duty

Posted Under

Category : Custom Duty (6694)
Type : Circulars (7563) Notifications/Circulars (30679)

Leave a Reply

Your email address will not be published. Required fields are marked *