Norms for Execution of Bank Guarantee in respect of Advance Authorization (AA)/Duty Free Import Authorization (DFIA)/Export Promotion Capital Goods (EPCG) Schemes reg. - Customs - 07/2013

GOVERNMENT OF INDIA OFFICE OF THE COMMISSIONER OF CUSTOMS (PORT) CUSTOM HOUSE, 1 STRAND ROAD KOLKATA-700001 F.No. S60 (Misc.)-126/2013 A (G) Dated: 22.03.2013 PUBLIC NOTICE NO. 07/2013 Subject: Norms for Execution of Bank Guarantee in respect of Advance Authorization (AA)/Duty Free Import Authorization (DFIA)/Export Promotion Capital Goods (EPCG) Schemes reg. Attention of all importers, members of trade and industry is invited to the Circular No.58/2004-Cus dated 21.10.2004 on the above subject. This was amended by Circular Nos. 17/2009-Cus and 32/2009-cus. Circular No.58/2004 was further amended by Circular No.6/2011-Cus dated 18.01.2011. By this amendment, Para 3.2 (c) was amended and the conditions for availing of exemption from bank guarantee were modified. 2. Prior to amendment by Circular 6/2011-Cus, one of the explicit criteria for denying benefit was that the license holder should have been penalized. However, the issue of penalty imposed for technical offences had arisen. The Circular 6/2011-Cus asked for taking an affidavit from the license holder stating whether any case(s) for certain offences, regarded as other than technical offences, had been booked during the previous three financial years and it was prescribed that, in case such violation(s) were revealed, the benefit of exemption from bank guarantee should not be extended. 3. It has been brought to the notice of the Board by exporters, trade associations and the field formations that with this amendment the benefit of availing of exemption from bank guarantee will be denied even before the show cause notice proposing imposition of penalty has been adjudicated. 4. The Board has reviewed the matter and considers that the position of not having been penalized should be restored. Accordingly, the Para 3.2 (c) of Circular 58/2004-Cus shall be read as follows: (c) The License holder should not have been penalized during the previous three financial years in cases booked against him related to Customs, Central Excise or Service Tax under the provisions of the Customs Act, 1962, the Central Excise Act, 1944, the Finance Act, 1994 (for Service Tax), as detailed below: (a) Cases of duty evasion involving mis-declaration mis-statement/collusion/willful suppression/fraudulent intent whether or extended period for issue of show cause notice has been invoked. (b) Cases of mis-declaration and/or clandestine/unauthorized removal of excisable/import/export goods warranting confiscation of said goods. (c) Cases of mis-declaration/mis-statement/collusion/willful suppression/fraudulent intent aimed at availing CENVAT credit, rebate, refund, drawback, benefits under export promotion/reward schemes. (d) Cases wherein Customs/Excise duties and Service Tax has been collected but not deposited with the exchequer. (e) Cases of non-registration with the Department with intent to evade payment of duty/tax. or in cases booked against him under the Foreign Exchange Management Act (FEMA), 1999 or the Foreign Trade (Development and Regulation) Act, 1992. 4.1 Thus, henceforth, any importer, who seeks exemption from furnishing the Bank Guarantee for the import under Advance Authorization (AA)/Duty Free Import Authorization (DFIA)/Export Promotion Capital Goods (EPCG) Schemes, he shall furnish an affidavit stating that he fulfills the above criteria. Such affidavits would also be got verified randomly from field formation by Deputy/Assistant Commissioner of Customs of the import Group. 5. It may be noted that the other conditions in Para 3.2 of the Circular No.58/2004-Cus dated 21.10.2004 remain unchanged. Difficulties, if any, faced in the implementation of this Circular, may be immediately brought to the notice of this office. (Gurdeep Singh) Commissioner of Customs (Port), Custom House: Kolkata