|
| |
CIRCULAR NO. 49 /2005-Cus.
29th November, 2005.
F.NO.607/08/2005-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.
Kind attention is
invited to Circular No.58/2004-Cus. dated 21.10.2004 vide which revised norms
for execution of Bond/BG under Advance Licence and EPCG Schemes were notified
for the various categories of importers. Subsequently, after announcement of the
Annual Supplement to the Foreign Trade Policy 2004-09, vide Circular
No.30/2005-Cus. dated 12.7.2005, the quantum of Bank Guarantee in respect of
other manufacturer exporters covered under Para 3.1 (f) of Circular
No.58/2004-Cus. was reduced from 25% to 15% and units in Agri Export Zones
(AEZs) were also made eligible for the said Bank Guarantee of 15%. It was
also clarified that the facility of 15% Bank Guarantee has also been extended to
established service providers who have free foreign exchange earnings of
Rs.50 lakhs or more during the preceding financial year and have a clean track
record.
2. In recent months it has been brought to the
notice of the Ministry by the trade that the service providers operating in the
port handling sector, who are appointed as custodians by the
jurisdictional Customs authorities, are required to import port handling
equipments in bulk so as to develop the infrastructure. And, if such
service providers are not a star export house and if they do not have any
past foreign exchange earnings, at present they are required to give 100%
Bank Guarantee for importing capital goods under EPCG Scheme which increases the
transaction cost.
3. On examination of their request
in the Ministry, it has been decided that service providers in the port handling
sector who are appointed as Custodians by the jurisdictional Customs/Central
Excise authorities shall be eligible for 25% Bank Guarantee for importing
capital goods under EPCG Scheme. Circular No.58/2004-Cus. dated 21.10.2004
stands modified to this effect.
4. A suitable Trade
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.
