Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject: Transhipment of cargo — 25% security to be taken
It is directed to refer to the Board’s Ciurcular No. 34/2000-Cus. Dated 3rd May, 2000 on above mentioned subject. Paragraph 2(ii) of the said Circular provides the manner in which the value of the Mother Bond is to be calculated. It has been provided in Paragraph 2(iii) that the Mother Bond would be like a running bond, whereas carriers would be free to furnish security for each trip of vessel separately. In this connection, doubts have been expressed regarding the amount of security to be furnished along with the bond required for the purpose of transhipment of import/export cargo from/through gateway ports.
2. The matter has been examined and it has been decided that the amount of security would be 25 percent of the bond value. As the carriers have been given option to furnish security for each trip of vessel separately, the amount of security would be 25 per cent of average value of cargo being carried in that particular trip of the vessel.
3. The above instructions should be brought to the notion of the Trade as well as departmental officers by way of issuing suitable notice/standing orders.
4. Difficulties, if any, in implementation of the above said instructions may be brought to the notice
of the Board. Kindly acknowledge receipt of the Circular.