9911796707
TMI BlogDEEC Scheme - Revised Norms of Execution of Bond and Bank Guarantee for CustomX X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 or Cash Security. A guarantee from a financial institution like, IDBI, ICICI, UTI etc. may also be accepted in lieu of Bank Guarantee. 2.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tee of Secretaries / EPIC Committee fixes a lower Bank Guarantee / Cash Security. (c) Other manufacturer - exporters (a) (b) 15% EPCG Zero Duty 50% 50% (d) Service Providers (a) 15% EPCG 50% 3.2 In cases where lower Bank Guarantee is fixed in respect of Category (b) of exporters by the COS / EPCG Committee the Commissioner of Customs if finds that the importer has committed serious violation of Customs Act or is guilty of evasion of duty, he may refer the case to the licensing authority for reconsideration. Such cases may also be brought to the notice of the Ministry. 3.3 Where an importer so requests, a Bank Guarantee may be taken even consignment- wise under E.P.C.G. Scheme the same may be acceptable but only at the Port ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y and shall be executed along with BG/Cash security/ or Guarantee from financial institutions like IDBI, ICICI, UTI etc. wherever applicable in terms of criterion laid down. The guarantee shall be in relation to terms and conditions of the Joint Bond. (iii) The parent company shall stand surety for the subsidiary company that in the event subsidiary company fails to fulfill the export obligation and defaults on payment of Customs Duty and interest, the parent company shall make goods the Government revenue and the interest. In other words the parent company will be severally and jointly liable for the action in terms of the bond / B.G. jointly executed by them. (iv) This facility should be extended only to those companies which have pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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