Acceptance of BG/LUT

4.18

At the time of issue of the authorisation, the acceptance of the undertaking given by the applicant to the Regional Authority concerned in the form given in ‘Aayaat Niryaat Form’ will be endorsed on the reverse of the Advance Authorisation.

Note :-

(a) No BG/LUT will be required where the specified export obligation has been fulfilled before making any import. In case of partial fulfillment of export obligation before effecting any imports, the BG/ LUT may be reduced proportionately.

The Authorisation holder shall also produce EP copy of the shipping bills and Bank Certificate of Export and Realisation, and a statement of exports giving details of shipping bill wise exports indicating the shipping bill number, date, FOB value as per shipping bill and description of export product substantiating the completion or the partial fulfillment of the export obligation to the Regional Authority concerned.

However, realization of export proceeds shall not be insisted if the shipments are made against irrevocable letter of credit in case of status holders/confirmed irrevocable letter of credit in case of others [OLD- confirmed irrevocable letter of credit ] or bill of exchange is unconditionally Avalised/ Co- Accepted/ Guaranteed by a bank and the same is confirmed by the exporters bank. In both these arrangements, certification of this is to be made by the bank in column 14/ 15 of Appendix 22A.

(Expression "irrevocable letter of credit in case of status holders/confirmed irrevocable letter of credit in case of others" has been substituted vide PN. NO. 33/2006, DT. 17/07/2006)

(b) In respect of an Advance Authorisation on which “No BG/ LUT” facility has been provided, the Regional Authority shall forward a copy of the “No Bond Certificate” indicating the shipping bill number, date, FOB value as per shipping bill and description of export product, in respect of shipment which were taken into account for calculating fulfilment of export obligation to the Customs Authorities with whom the authorisation is required to be registered. Such details shall also be placed by the zonal offices in their website immediately after issuance of the export obligation discharge/redemption letter/No Bond Certificate and by DGFT Hqr in DGFT website on monthly basis for the customs authority to access it from the website.

Before allowing the imports against Advance Authorisation, the Customs shall verify that the details of the exports as given in the “No Bond Certificate”, are as per their records.

(c) The cancellation/ redumption of BG/LUT would be undertaken by the Customs within 30 days of issue of Export Obligation Discharge Certificate (EODC) /bond waiver by the regional office.