DEEC & EPCG Scheme
-Manufacturer-Exporters exempted from furnishing Bank Guarantee
- Bond form prescribed
Circular No.71/1998-Customs date 15/9/1998Subject: Exemption from Bank Guarantee to manufacturer Exporters under DEEC andEPCG Schemes - regarding.
In partial modification of Board's Circular No. 45/ 96-Cus dated 28.8.1996vide F.No.605/75(A)/95-DBK, it has been decided that Manufacturer-Exporters registered with the Central Excise Department shall be exempted from furnishing a Bank Guarantee under the DEEC and EPCG Schemes. Under EPCG Scheme the facility shall be available to EPCG Licences issued after 1.4.1995.
2. The exemption from furnishing Bank Guarantee shall be available provided the following conditions are fulfiled :-
(i) Where he has been already issued an EPCG Licence, and is having a turnover ofRs.1 Crore or more in the preceding financial year;
(a) he must also have a record of having achieved the export obligation specified in the EPCG notification(s); or
(b) if the Export Obligation has not expired, the Exporter has not defaulted on the export obligation specified in EPCG for the block period in any licence(s) as prescribed in the relevant Customs notification (s).
(ii) For a licence holder who has no previous Hence issued under EPCG Scheme, he must have Export turnover of Rs. 1 Crore or more in the preceding financial year. The exemption from Bank Guarantee shall, however the withdrawn if such exporter defaults on his export obligation for two successive block periods under Zero duty EPCG Scheme, or for three consequtive years under 1O% duty EPCG Scheme.
(iii) For exporters operating under the DEEC Scheme, where he has been issued a DEEC Licence(s) and he has a turnover of Rs.1 Crore or more in the preceding financial year, he must have a record of achieving the export obligation as specified in the relevant customs notification(s).
(iv) For first time licence holders under DEEC Scheme, who have previous export performance with a turnover of Rs. 1 Crore or more in the preceding financial year.
(v) The exporter should not have been penalised under the provisions of Customs Act, Central Excise Act, Foreign Exchange Regulation Act or Foreign Trade (Development and Regulation) Act during the last two financial years.
(vi) Provided that the person standing surety to the Bond (format annexed to the Circular) is certified by his Bank or a Chartered Accountant that he is solvent.
3. Suitable standing orders and Public Notice may be issued for the guidance of staff and for information of the Trade. Copies of the S.O./PN may be forwarded to Joint Secretary (Drawback) and the DGI, C & C. Ex. New Delhi.
Sd/-
(Sunil Kumar)
Director (Drawback)
F.No.605/75(A)/95-DBK
Form of Bond
(For Availing Duty Exemption under DEEC/EPCG Scheme)
I/we, __________________________ having our registered office at _________________ hereinafter referred to as the Obligor(s) and _______________called the surety(ies) (which expression shall, unless repugnant to the context or meaning thereof include our heirs, successors, executors, administrators, liquidators, legal representatives and assignees) hereby hold and firmly bind over - selves jointly and severally unto the President of India, acting through the (jurisdictional Assistant Commissioner of Customs) Department of Revenue, Ministry of Finance, Government of India, hereinafter referred to as 'the Government' in the sum of Rupees _____________only for which payment to be well and truly made, I/we, the obligor(s) bind myself/ourselves by these presents.
WHEREAS I / we, the obligor(s), have imported goods listed in Annexure Iavailing customs duty exemption in terms of the Notification of the Government of India in the Ministry of Finance (Department of Revenue) No. ______________dated the ________________ (hereinafter referred to as the said notification) against the Import Licence No. ____________ dated __________________ (hereinafter referred to as licence) for the import of the goods mentioned therein on the terms and conditions specified in the said notification and licence.
WHEREAS I/we the obligor(s) is/are manufacturer exporter(s) holding registration No. ____________dated ___________ with the (name and address of the registering Central Excise authority to be mentioned)______________.
WHEREAS I/we the obligor(s) has/have undertaken to fulfil the export obligation as specified in the said notification and the licence and to produce evidence of having, so fulfilled the export obligation within 30 days from the expiry of the specified Export Obligation period to the satisfaction of the Government.
Now the conditions of the above Bond are that:
1. I/we, the obligor(s) shall observe all the terms and conditions of the said notification;
2. I/we, the (obligor(s) shall observe all the terms and conditions specified in the licence;
3. I/we, the obligor(s), shall fulfil the export obligation as specified in the said notification and the licence and shall produce evidence of having so fulfilled the export obligation within 30 days from the expiry of the specified export obligation period to the satisfaction of the Government.
4. In the event of failure to fulfil full or part of the export obligations as specified in the said notification and the licence, I/we, the obligor(s), herein undertake to pay the customs duty but for the exemption and also interest @ 24% per annum thereon forthwith and without any demur, to the Government.
5. I/we, the obligor(s), shall comply with the conditions and limitations stipulated in the said Import and Export Policy as amended from time to time.
6. I / we, the obligor(s), shall not change the name and style under which we the obligor(s), are doing business or change the location of the manufacturing premises except with the written permission of the Government.
It each and everyone of the above condition is duly complied with by us, the obligor(s), the above written bond shall be void and of no effect; otherwise the same shall remain in full force and effect and virtue.
It is hereby declared by us, the obligor(s) and the Government as follows:
1. The above written bond is given for the performance of an act in which the publicare interested.
2. The Government through the Commissioner of Customs or any other officer of Customs recover the sums due from the obligor(s) in the manner laid down in sub- section (1) of the section 142 of the Customs Act, 1962.
Provided always that the liability of the surety hereunder shall not be impaired or discharged by reason of any time being granted, or any forbearance, act or omission of the Government (whether with or without the knowledge or the consent of the surety) in respect of or in relation to the obligation and condition to be performed or discharged by the obligor(s) nor & shall it be necessary to sue the obligor(s) before suing the surety for amounts hereunder.
AND the President of India shall, at his option, be competent to make good all the loss and damages by endorsing his rights under the above written bond.
I/we further declare that this bond is given under the orders of the Central Government in the performance of an act in which the public are interested.
In these presents the words imposing singular shall also include the plural andvice-versa where the context so requires.
IN WITNESS HEREOF these presents have been signed this day _________of_______ 19______ herein before written by the obligor(s) and the surety(ies).
Place:
Date:
(Signature of the Obligor)
Witness (1) name and address (1) occupation (1)_____________ (2) name and address (2) occupation (2)_____________*(Signature of surety) *As per Para 6 of Board's Circular No.71/98-Cus. dated 15th Sept.1998.Witness (1) name and address (1) occupation (1)_____________ (2) name and address (2) occupation (2)_____________ Signature and date Name __________________________________ Designation ___________________________Accepted for and behalf of the President of India on ______________________dayof _________ 19 ___________. Signature and date Name ___________________________________ Designation ____________________________ Annexure - 1 Table _________________________________________________________________________________ Sl.No. Description of item Quantity Assessable Duty involved Value (but for exemption) _________________________________________________________________________________ 1 2 3 4 5 _________________________________________________________________________________
(Please refer CUS CIR NO. 58/2004 DATE 21/10/2004)
(Please refer CUS CIR NO. 48/2003 DATE 06/06/2003)
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