Circular No. 32/2009-Cus dated 25.11.2009
Revised norms for execution of Bank Guarantee under specified Export Promotion
Schemes - Modifications in Circular No.17/09-Cus dt.25.05.09 - reg.
I am directed to invite your attention to Circular No.17/2009-Cus. dated
25.05.2009 (herein after referred to as ‘the said circular’) vide which revised
norms for execution of Bond / Bank Guarantee (BG) in respect of imports made
under the Advance Authorization / Export Promotion Capital Goods/Duty Free
Import Authorization Schemes were notified and to say that, representations have
been received to clarify, whether the status holders other than ‘Star Export
House’ are entitled for ‘nil’ BG in terms of sl.No.(c) of the Table appended to
para 2.1 of the said circular.
2 The issue has been examined by the Board. The circular no 17/09-Cus. had
amended circular No.58/2004-Cus which was issued in the light of the provisions
of the 2004-05 edition of the Foreign Trade Policy (FTP).The FTP-2004 recognized
five categories of Status Holders viz. One star /two star / three star /four
star and five star Export Houses. The circular No. 58/2004-Cus extended the
benefit of ‘nil’ BG to all the five categories through a common phrase ‘Star
Export House’ under sl.No. (c) of the Table. The intention of the circular no
58/2004-Cus was therefore to extend the benefit of ‘nil’ BGto all the status
holders.The sl no. (c) of the table remained unchanged in circular No.
17/09-Cus.
3. As the above categories are now known as Export House, Star Export House,
Trading House, Star Trading House and Premier Trading House respectively in
terms of para 3.10.2 of the current FTP, the benefit of ‘nil’ BG should also be
extended to all categories of status holders.The words ‘Star Export House’
appearing under sl. No. (c) of the Table may therefore be read to mean ‘Status
Holders recognized under the provisions of the Foreign Trade Policy’
4. These instructions may be brought to the notice of the trade / exporters by
issuing suitable Trade / Public Notices. Suitable Standing orders/instructions
may be issued for the guidance of the assessing officers. Difficulties faced, if
any, in implementation of the Circular may please be brought to the notice of
the Board at an early date.
Receipt of this Circular may kindly be acknowledged.
F.NO.605/61/2007-DBKYours faithfully,
(P.V.K. Rajasekhar)
OSD (Drawback)
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