Format of Bank Guarantee for Customs purposes - Provision for automatic extension of the guarantee period – reg. - Customs - 19/2010

OFFICE OF COMMISSIONER OF CUSTOMS NEW CUSTOM HOUSE, PANAMBUR MANGALORE 575010 F. No. S-01/13/2010-Apprg. Dated: 22.10.2010 PUBLIC NOTICE NO. 19/2010 Sub - Format of Bank Guarantee for Customs purposes - Provision for automatic extension of the guarantee period reg. Attention of the CHAs/Import-Export trade and all concerned is invited to revised format of Bank Guarantee to be furnished along with Bonds for various purposes under the provisions of Customs Act 1962, and rules and regulations made there under. 1. Reserve Bank of India (RBI) has issued a Master Circular DBOD. No. Dir. BC. 14/13.03.00/2009-10 dated 1st July, 2009 wherein it has been clarified to the Banks that 't the Public Notice issued by the Customs Department stipulates, inter alia, that all bank guarantees furnished by an importer should contain a self-renewal clause inbuilt in the guarantee itself. As the stipulation in the Public Notice issued by the Customs Department is akin to the notice in the tender form floated by the DGS D, the provision for automatic extension of the guarantee period in the bank guarantees issued to DGS D, as at sub-paragraph (iv), should also be made applicable to the bank guarantee issued favouring the Customs Houses. 2. The Master Circular of RBI can be accessed from the RBI web site at http://www.rbi.org.in/scripts/BS_ViewMasCircuIardetaiIs.aspx?ld=5130 Mode=0 3. In view of the referred instructions of RBI, the provision for automatic extension of the guarantee period may be got incorporated in the Bank Guarantees given in favour of Customs authorities. Model form of Bank Guarantee Bond is enclosed. The same may be used for new bank guarantee. With regard to the existing bank guarantee a similar extension clause may be furnished from the banks. (Based on Boards letter F.No. 473/04/2009-LC Dtd-30.06.2010) (M. AJIT KUMAR) COMMISSIONER