Kerala HC: Physiotherapists and Occupational Therapists Cannot Use “Dr.” Without Medical Degree  ||  Delhi High Court: Law Firms Must Verify Cited Case Laws; Senior Counsel Not Responsible for Finality  ||  MP High Court Dismisses Shah Bano’s Daughter’s Plea, Rules ‘Haq’ Movie is Fiction  ||  Bombay HC Cancels ERC Order, Rules Stakeholders Must Be Heard Before Amending Multi-Year Tariff  ||  Calcutta High Court Rules Dunlop’s Second Appeal Not Maintainable under the Trade Marks Act  ||  Kerala HC: Revisional Power U/S 263 Not Invocable When AO Grants Sec 32AC Deduction After Inquiry  ||  J&K&L HC: Section 359 BNSS Doesn’t Limit High Court’s Inherent Power U/S 528 to Quash FIRs  ||  Bombay HC: BMC Ban on Footpath Cooking via Gas/Grill Doesn’t Apply to Vendors Using Induction  ||  Madras HC: Buyer Not Liable for Seller’s Tax Default; Purchase Tax Can’t Be Imposed under TNGST Act  ||  Kerala HC: Oral Allegations Alone Insufficient to Sustain Bribery Charges Against Ministers    

Clarification regarding bank guarantee requirement for bond executed by EOUs- (Ministry of Finance ) (14 Aug 2018)

MANU/CUCR/0027/2018

Customs

1. Various representations have been received regarding difficulties faced by EOUs with respect to requirements of bank guarantees in view of Circular no. 48/2017-Customs dated 08.12.2017 issued by CBIC. The matter has been examined.

2. Clarification issued vide Circular no. 48/2017-Customs dated 08.12.2017 is with respect to Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 notified vide Notification no. 68/2017-Customs (NT) dated 30.06.2017. Vide the said Circular, various norms have been prescribed with respect to requirement of bank guarantee/cash security/surety for various categories of importers which is required to be furnished for the bond to be executed as per sub-rule (2) of Rule 5 Customs (import of goods at concessional rate of duty) Rules, 2017. No specific reference has been made to EOUs in these norms.

3. The confusion is arising on account of the requirement of EOUs to follow Rule 5 of Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 to be eligible for claiming exemption of duties/taxes on the import of goods under Notification no. 52/2003 dated 31.03.2003. As the EOUs have already been executing B-17 bond, hence it was clarified vide Circular no. 29/2017-Customs dated 17.07.2017 that the said B-17 bond will serve the requirement of continuity bond as required under Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 and there is no requirement to submit a separate continuity bond by EOUs. As B-17 bond is serving the purpose of continuity bond for EOUs, hence various circulars issued by the Board extending the facility of exemption from furnishing bank guarantee/surety by EOUs namely Circular no. 54/2004-Customs dated 13.10.2004 and circular no. 36/2011-Customs dated 12.08.2011 will continue to hold good, as these circulars are in line with the Para 6.12 of the Foreign Trade Policy which lays down the conditions for EOUs to be exempted from furnishing of bank guarantee.

4. In view of above, it is reiterated that waiver of bank guarantee/surety to EOUs would continue to be governed by various circular issued from time to time by CBIC with regard to B-17 bonds executed by EOUs and will not be guided by the Circular no. 48/2017-Customs dated 08.12.2017 which governs the general importers and not the EOUs.

5. Difficulties, if any, may be brought to the notice of the Board.

Tags : CLARIFICATION   BANK GUARANTEE   BOND   EXECUTION  

Share :        

Disclaimer | Copyright 2025 - All Rights Reserved