Executiion of LUT/BG against Import Authorisation issued by import of Restricted Items on Re-export basis - DGFT - 39/2009-2014

GOVERNMENT OF INDIA MINISTRY OF COMMERCE INDUSTRY DIRECTORATE GENERAL OF FOREIGN TRADE UDYOG BHAVAN, NEW DELHI Policy Circular No. 39/2009-2014 Dated 15th July 2010 To, All Regional Authorities; Trade Industry Subject: Executiion of LUT/BG against Import Authorisation issued by import of Restricted Items on Re-export basis. This refers to the Import Authorisation which are approved for import of restricted items on re-export basis by the EFC. To ensure that goods are re-exported by the importers as declared by them at the time of application for Import Authorisations, it has been decided that Regional Authority (RA) concerned will take LUT/BG from the importers at the time of issuance of such authorization as per the following details:- 1. The status holders and manufacturers with a turnover of 5 Cr and above, shall execute only a LUT for the full import value. 2. Other importers, not covered by Sl.No. 1 above, shall excute LUT for the full import value along with a bank guarantee (BG) for a value of Rs. 1 lakh (one lakh Rupees). 3. LUT / BG should have a minimum validity for a time period covering the re-export time plus six months. 4. LUT/BG should be redeemded by RA as soon as the documentary evidence for re-export of goods is furnished by the importer. 5. This issues with the approval of Competent Authority. (SHUBHRA) Joint Director General of Foreign Trad e (Issued from F.No.01/53/8/484/AM010/N-23/Import Cell)