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TMI BlogRevised norms for execution of Bond and Bank Guarantee under Advance License and EPCG Schemes – regX X X X Extracts X X X X X X X X Extracts X X X X ..... ce licenses from DGFT authorities in order to avail BG exemption, they also submitted forged/false CA certificates which were issued by the CAs without verification. As a result it has become necessary to re-examine the facility of BG concession/exemption extended under earlier DOR Circular Nos.45/96-Cus. dated 28.8.96 and 71/98-Cus. dated 15.9.98 and incorporate additional safeguards. Whereas 45/96 grants BG concession/exemption under Advance License and EPCG Schemes to status holders and others, 71/98 grants exemption from BG to manufacturer exporters under Advance License and EPCG Schemes. 2. The issue has been re-examined in DOR and the following revised norms are issued for the purpose of availing exemption from BG under Advance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3.1 above shall be admissible subject to the following conditions: (a) The license holder has not defaulted on the export obligation in respect of any advance license/EPCG licence issued to him in the past. The BG exemption shall stand withdrawn if DGFT or Customs comes across default in export obligation against any Advance License/EPCG License issued. (b) For the purpose of availing BG exemption in terms of Para 3.1 above, the manufacturer exporter shall submit the export performance certificate {as specified in Para 3.1(c) } issued by jurisdictional Superintendent of Central Excise where his factory is located. In respect of new manufacturer exporters who have paid central excise duty of Rs.1 crore or more during the preced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntee within time. Customs shall also ensure that, wherever required, bank guarantees are renewed well in time. 3.7 In the case of subsidiary company of a parent company of a recognized status, the facility of filing joint bond (both by the parent company as well as the subsidiary company holding the license) alongwith BG/Cash security/ any other guarantee from financial institutions like IDBI, ICICI, UTI etc, shall also be available. The facility, however, shall be subject to the following conditions :- (i) The parent company shall necessarily have more than 50% share holding in the subsidiary company. (ii) the bond shall be jointly signed by the parent company as well as the subsidiary company and shall be executed alongw ..... X X X X Extracts X X X X X X X X Extracts X X X X
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