Circular No.608/45/2001- CX
24th December 2001
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Subject: Board’s Circular No. 586/23/2001-CX dated 12.9.2001-furnishing of security by merchant exporters-reg.
I am directed to refer to the New Central Excise Manual released on 1.9.2001 and Board’s Circular No. 586/23/2001-CX dated 12.9.2001 wherein it is directed that Merchant Exporters, other than the Status holders (Super Star Trading House, Star Trading House, Trading House and Export House), have to, along with the bond executed for purposes of exports, furnish a security of 25% of bond amount, and to state that many representations have been received from the trade stating that the new dispensation is adversely affecting the exports as the cost of compliance has increased.
2. The matter has been examined by the Board and in the interest of facilitating exports it has been decided to keep the instruction regarding the furnishing of 25% security in abeyance till further order in respect of Merchant Exporters who are registered with a Recognised Export Promotion Council. Accordingly, it is directed that 25% security may not be insisted upon from said Merchant Exporters who are registered with a Recognised Export Promotion Council.
3. The field formations may suitably be informed.
4. Receipt of this Circular may please be acknowledged.
5. Hindi version will follow.