CIRCULAR NO. 20/2005-Cus.
22nd March, 2005
F.NO. 605/40/2004-DBK
Government of India
Ministry of Finance
Department of Revenue
Sub : Revised Norms for Execution of Bond and Bank Guarantee under Advance Licence and EPCG Schemes – Reg.
The undersigned is directed to invite attention to Board’s Circular No.58/2004-Cus. dated 21.10.2004 on the above subject and to say that a doubt has been raised as to whether a Surety is to be furnished alongwith Bond in the case of imports by Star Export Houses, Public Sector Undertakings etc. {vide para 3.1(a) to (e)} under Advance Licence and EPCG Schemes. It has been represented that since established exporters, Star Export Houses and Public Sector Undertakings have large volume of imports under Advance Licence and EPCG Schemes, it becomes difficult for them in arranging Sureties by another firm or person for each & every import. Besides, it adds to transaction cost. It has, therefore, been requested that the requirement of Surety for execution of Bond under Advance Licence and EPCG Schemes should be dispensed with in the case of Star Export Houses, Public Sector Undertakings etc., as available earlier under Circular No.79/2003-Cus. dated 4.9.2003 (since superceded)
2. The matter has been examined by the Board. It is to inform that in the case of imports by Star Export Houses, Public Sector Undertakings etc. under Advance Licence and EPCG Schemes, the intention is not to take a Surety alongwith Bond. It is, therefore, clarified that in respect of the categories of importers specified in paragraph 3.1(a) to (e) of Circular No. 58/2004-Cus. dated 21.10.2004, a Bond without Surety shall be accepted for the purposes of import of goods under Advance Licence/ EPCG Schemes. All other conditions/checks specified in the Circular remain unchanged.
3. A suitable Public Notice and Standing Order may be issued for the guidance of the trade and staff. Difficulties faced, if any, in implementation of the Circular may be brought to the notice of the Board at an early date.
Receipt of this Circular may kindly be acknowledged.
Yours faithfully,
Sd/-
R.K. Talajia
OSD(DBK)
