Subject: Amendment in Circular No. 52/95 allowing relaxation of norms fixed by Board for execution of Bank Guarantee.
After considering various representations received from Export Promotion Councils and exports in general. Board has decided to make, the following further relaxation in the norms fixed earlier in Circular no. 52/ 95 dated 25.5.95 for execution of Bond / Bank Guarantees;
(i) Under DEEC Scheme
“Export House” (both large and SSI type) may be permitted to clear their imported materials under DEEC Scheme against a Bond without execution of Bank Guarantee. Thus, “ExportHouses” will now be treated at par with Trading Houses, Star Trading Houses, Super Star Tradingand Trading Houses mentioned in Clause (a) of Para 3.1 of Board’s Circular No. 52/95 dated25.5.95 and extended the same facility as was allowed earlier under Para 3.1 and Para 3.2 to thecategory of importers. According , the term “Export Houses” is hereby deleted from clause(b) of circular No.
(ii) Under EPCG Scheme
(b) Under the Zero-Duty EPCG Scheme i.e. Exemption Notification No. 111/ 95 dated 5.6.1995, the facility of exemption from execution of Bank Guarantee and clearance of Capital Goods on execution of a Bond without Bank Guarantee may be extended onlyto Super Star Trading Houses, star Trading Houses and Trading Houses. However,”Export Houses” may be allowed clearance on execution of a Bond for the difference betweenthe duty leviable on goods on mertis and the duty actually paid on importation, with a Bank Guarantee for 25% of the duty saved instead of 50% Bank guarantee.Where the Committee of Secretaries / EPCG Committee prescribes a higher minimumBank Guarantee in a particular case, the said minimum stipulated Bank Guaranteeshall be taken by the Custom House.
2. Your attention is invited to the clarifications already issued to all Commissioner of Customs, All Chief Commissioners of Customs and Central Excise vide Board’s Telex F.No.605/75/95-DBK date 25.8.95 (copy enclosed). These clarifications will continue to remain in force for clearance of Capital Goods by holders of EPCG Licences both under 15% and Zero-Duty Exemption Notification.