Subject : Exemption from Bank Guarantee to manufacturer Exporters under DEEC and EPCG Schemes - regarding.

    Attention is invited to Board's Circular No. 71/98-Customs dated 15th September 1998 granting exemption from Bank Guarantee to manufacturer exporters registered with Central Excise Department subject to conditions specified therein.

2.  In terms of Notification No. 49/99-CE(NT) dated 9th July, 1999, manufacturer of goods chargeable to nil rate of duty and specified in chapters 61 and 62 of the Schedule I to the Central Excise Tariff Act, 1985 (CETA,1985) have also been permitted to get registered with the Central Excise Department under Rule 174(I) of the Central Excise Rule 1944. Hence manufacturer exporters of such goods who get registered with Central Excise Department would become eligible to avail the exemption from Bank Guarantee under Board's Circular No. 71/98-Cus if they fulfill the conditions of the said Circular.

3.  It is therefore clarified that manufacture exporters who manufacture goods specified in Chapter 61 and 62 of CETA, 1985 chargeable to nil rate of Central Excise duty would also be eligible for exemption from Bank Guarantee in terms of Board's Circular No. 71/98-Cus.  If they fulfill the condition of 71/98 and get themselves registered with Central Excise Department.

4.  Suitable standing orders and Public Notice may be issued for the guidance of staff and for information of the Trade.  Copies of the S.O./P.N. may be forwarded to Joint Secretary (Drawback) and the DGI, C & CE. New Delhi.