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CUSTOMS CIRCULAR NO. 49 /2005-Cus. dated
29th November, 2005.
Amendment to Circular No.58/2004-Cus. dated 21.10.2004.
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.
5. Receipt of the Circular may kindly be acknowledged.
Yours faithfully,
Sd/-
(R.K. TALAJIA)
O.S.D. (DBK)
F.NO.607/08/2005-DBK