Duty Exemption Scheme
Bond/BG to be executed with that Custom House where application for Advance Licence is registered
Circular No.75/1995 dated 28/6/95Subject: Circular No. 32/95 - Taking a Bond/Bank Guarantee by the Custom House/Port in which DEEC Book is registered - Regarding.
A reference has been received from some of the Commissioners of Customs pointing out that the procedure laid down in Para 2.4 of Ministry's Circular No. 32/95 dated 5.4.95(F.No. 605/57/95-DBK) does not specify which Custom House is to accept the Bond/Bank Guarantee which is to be executed by the importer for goods imported under the Exemption Notification Nos. 79/95 and 80/95 dated 31.3.95. Different Custom Houses are reported to be following different practices, which may result in the importers having to execute more than One Bond/Bank Guarantee if the goods are imported at more than one Port.
2. The matter has been examined in the Ministry and it has been decided that with a view to remove any inconvenience which the importers/exporters have to face on this account, and also to ensure more effective monitoring of the export obligation by the Custom House, the Bond/Bank Guarantee must be taken by the Custom House in which the Application for Advance Licence/DEEC Book is registered by the exporter. Where the goods are imported at a port other than the Port of Registration, the Custom House which issues the Telegraphic Release Advice (TRA) will take the Bond/Bank Guarantee and endorse the facts of the amount of the Bond/Bank Guarantee taken on the TRA issued by it to the Port of Clearance. The Port of Clearance/Custom House must after making the endorsement in the DEEC Book Part I (Import) Part C and Part D, intimate by Telex the particulars of the duty-free materials imported as entered in Part D of the DEEC Book to the Custom House where the DEEC Book is registered. The Custom House where the DEEC Book is registered, must issue the TRA only after the Bond/Bank Guarantee has been executed by the importer.
3. Custom Houses should take immediate action to issue suitable standing orders /Departmental orders for the information of the field staff. Suitable trade/public notices may also be issued for information of the trade. Copies of the same should be sent to Director (Drawback) and DGIACCE.
Sd/-
(Sunil Kumar)
Director (Drawback)
F.No. 605/57/95-DBK
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