OFFICE OF THE COMMISSIONER OF CUSTOMS, CUSTOM HOUSE, CHENNAI.

PUBLIC NOTICE No. 189/2001-GR.7

Sub: Procedure of Execution of Bond and Bank Guarantee under the Advance Licences - Reg.

        The Mother Bond should be given for the entire value of the licence. The Bank Guarantee can be given for a subject consignment whenever the import takes place. However, whenever the importer makes subsequent imports in the same licence, the Bank Guarantee to be given at this stage, should not only cover the Bank Guarantee for the subject consignment but should also cover the Bank Guarantee amount for the previous consignments already cleared in the said licence. The Bank Guarantee given at this stage should have the details of the previous consignments and it should cover the previous imports also. In other words the importers can give a cumulative Bank Guarantee including the consignments that have been cleared. As a result there will be one Bank Guarantee only for each licence. As soon as the Bank Guarantee is given for the later consignment covering the previous consignment, the Bank Guarantee for the previous consignment will be cancelled and returned to the importer subject to the condition that the later Bank Guarantee covers the previous consignment value also.