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

PUBLIC NOTICE NO.135/2001-GR.7

                  Sub:   Procedure of execution of Bond and Bank Guarantee under the Advance Licences – reg.

 

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         Attention  of  all Importers, Exporters, CHAs and  all other concerned is invited to the Advance Licences issued on or after 01.04.1995  in terms of  the Notifications  issued in this behalf consequent to the revised edition  of EXIM Policy.

 

2.       Attention of the trade is specifically invited to Boards Circular No.45/96-Cus, dated 28.8.1996 which has given a revised norms for execution of Bond and Bank Guarantee under the DEEC Scheme.  Bond under DEEC Scheme should cover  the duty ordinarily leviable on the goods but for the exemption (i.e.basic duty and additional duty leviable on the goods on merits minus additional duty actually paid).  For example, if basic duty on the imported goods is 50% and additional duty is 20%, the effective duty recoverable on  imports shall be 50% plus  20% on 50% i.e. 80% of assessable value.  Since additional duty will actually be recoverable only at the rate of 20% of assessable value (basic Customs duty being exempt), the bond to be executed shall be for the difference between 80% and 20% i.e.60% of the assessable value.  Surety with the Bond should be in the form of Bank Guarantee.

                 

The following norms have been fixed for quantum of Bank Guarantee for different categories of importers:

 

 

 

3.       It is noticed that this Custom House so far has been accepting Bond and Bank Guarantee for each consignmentwise.  This practice has created lot of administrative inconvenience.  To facilitate speedy clearance of imported materials under DEEC Scheme it has been decided that the Bond and Bank Guarantees should be executed and submitted by the importers, exporters, etc at the time of registration of Advance Licences.  There shall be One Bond backed by appropriate bank guarantees for each Advance Licence registered in the Custom House.  Therefore at the time of registration, the quantum of Bond and amount of Bank Guarantee should cover total imports against the relevant Advance Licences.  The amount of Bond and Bank Guarantee shall be arrived at by following the procedure prescribed in para 2 above.  In respect of licences issued for Silk, the existing practice of taking 50% Bank Guarantee from manufacturer exporter will continue.

 

4.       In respect of  Advance Licences which are already  registered and against which requisite bonds and bank guarantees have  been  executed piece meal, bonds and bank guarantees for such licences should be  calculated for the entire licence after giving due adjustment  for the amount of Bond & Bank Guarantee already executed before the next import is made in the subject licence.

 

         This Public Notice shall be operative with immediate effect.

 

 

Sd/-(10.07.2001)

(JOSEPH DOMINIC)

COMMISSIONER OF CUSTOMS

 

F.No.S.Misc.336/201-Gr.7

Group-7,

Custom House,

Chennai-1

                 

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