Dispensing bank guarantee for bonds in respect of procurement of indigenous goods by 100% EOUs - Regarding - Central Excise - 47/90-CX.8

Dispensing bank guarantee for bonds in respect of procurement of indigenous goods by 100% EOUs - Regarding Circular No. 47/90-CX.8 Dated 16-7-1990 [From F. No. 267/34/90-CX.8] Government of India Central Board of Excise Customs New Delhi Subject : Dispensing bank guarantee for bonds in respect of procurement of indigenous goods by 100% EOUs - Regarding. Representations have been received from the Trade requesting for waiver of requirement of submitting bank guarantees for bonds executed under exemption Notification No. 123/81-C.E., dated 2-6-1981 and for accepting general surety bond in respect of indigenous goods procured by 100% EOUs without payment of duty. The matter has been examined by the Board. Keeping in view Government policy to encourage exports, it has been decided that security in the form of bank guarantees for bond executed under Notification No. 123/81-C.E., dated 2-6-1981 need not be insisted upon and surety bonds in lieu thereof should be accepted subject to the solvency of the surety. Field formations should be advised suitably. A suitable Trade Notice may also be issued for the information of the Trade.