I am directed to invite your attention to the Board’s Circular No.36/2002-Cus. dated the 28th June, 2002 on the above subject.

2. It has been brought to the notice of the Board that in case of import of silver under the above said notification, the importers are being asked to furnish bank guarantee on the basis of tariff rate of duty applicable to silver and not on the basis of effective rate of duty on silver when imported by the nominated agencies. It has been requested that the bank guarantee should be worked out taking the duty on silver at the rate of Rs. 500/- per kg. i.e. the rate of duty as applicable to the nominated agencies under notification No. 80/97-Cus. dated 21.10.97.

3. The matter has been examined. At present, the nominated agencies are allowed to import silver on payment of duty at the rate of Rs. 500 per kg. under notification No.80/97-Cus. dated 21.10.97. To bring down the transaction cost of exports, it has been decided that for the purpose of calculation of bank guarantee amount in case of import of silver under the scheme “Export Against Supply by Foreign Buyer”, the duty rate on silver will be taken at the rate of Rs. 500/- per kg.

4. The Circular No.36/2002-Cus. dated 28th June, 2002 stands amended to the above extent.

5. Wide publicity may be given by issue of a Public Notice in this regard.

6. Difficulties, if any, faced in the implementation of above instructions, may be brought to the notice of the Board at an early date.

Kindly acknowledge receipt of this Circular.

(C.P. Goyal)
Sr. Technical Officer (FTT)
 

F.No.305/13/2000-FTT