Dear Friends
As we aware execution of Bond and Bank Guarantee (BG) for the
purpose of permitting clearance of imported goods under Advance License/EPCG Schemes
is mandatory. But there are concessions for certain category of status holders.
Especially a registered member of an Export Promotion Council
shall produce a certificate of proof of export performance along with
certificate of status of applicant as “Manufacturer Exporter” from the
concerned Export Promotion Council can make use of this concession.
Alternatively, the exporter shall produce a certificate of
proof of export performance by a practicing Chartered Accountant alongwith
certificate of status of applicant as “Manufacturer Exporter” duly
authenticated by a practicing Chartered Engineer to the satisfaction of the
Assistant Commissioner or Deputy Commissioner.
The Chartered Accountant issuing the certificate will mention
his GST code and other registration details in the certificate and such
certificates shall certify: • the proof of export performance; during the
current financial year and preceding financial year; and • the proof of payment
of GST as the case may be, during the current financial year or preceding
financial year. In addition to above, Manufacturer Exporter shall submit one of
the following documents:
(a) Installation certificate pertaining to earlier imported
or domestically procured capital goods, by the Manufacturer exporters, issued
by Jurisdictional Superintendent of Central Excise certifying manufacturing
activity; or
(b)Installation certificate pertaining to earlier imported or
domestically procured capital goods, issued by a Chartered Engineer certifying
manufacturing activity. In such cases, Manufacturing Premises shall be post
verified by the Jurisdictional Superintendent of Central Excise and Monitoring
Cell shall ensure that such verification report is received; or
c) EODC or Redemption letter issued by DGFT (alongwith copy
of License) during the current financial year or preceding financial year in
respect of earlier Licence issued under Advance Authorisation or EPCG Scheme
In Simple terms, a Manufacturer Exporter can produce RCMC
certificate copy and performance certificate from respective Export Promotion
Council and can give only 15% Bank Gurantee based on below circular 17/2009
________________________________________
Circular - Customs
Norms for execution of Bank Guarantee under specified export
promotion schemes- Modifications in Circular No.58/04-Cus dt.21.10.04-reg.
Circular No. 17/2009-Cus.
F.NO.605/61/2007-DBK
Government of India
Ministry of Finance
Department of Revenue
-----------
New Delhi, the
25th May , 2009.
Sub: Norms for execution of Bank Guarantee under specified
export promotion schemes- Modifications in Circular No.58/04-Cus
dt.21.10.04-reg.
I am directed to invite your attention to Circular
No.58/2004-Cus. dated 21.10.2004 (herein after referred to as 'the said
circular') vide which revised norms for execution of Bond / Bank Guarantee (BG)
in respect of imports made under the Advance Licence and EPCG Schemes were
notified and to say that, representations suggesting the following amendments
in the said circular have been received,-
(i) to consider the service exports at par with the physical
exports and to extend the benefit of
exemption from BG to the service
providers who fulfill the criteria laid
down in the circular ;
(ii) to extend the
benefits of the said circular to the imports under DFIA scheme;
(iii) to consider the cumulative turnover of all the units of
a manufacturer for the purpose of eligibility for exemption under the circular
if all the units are operated under the same
Importer Exporter Code (IE-Code).
2 The above representations have been examined by the
Board. As regards extending benefits
provided under para 3.1 of the circular to the service exporters on par with
the exporters who are doing physical exports, it is observed that the service
providers with foreign exchange earnings of ₹ 50 lakhs or more during the
preceding financial year and having a clean track record have already been
allowed the facility of 15% BG vide Circular No.30/2005-Cus. dated 12.7.2005.
Further, the service providers in the port handling sector who have been
appointed as Custodians have been allowed to furnish BG @ 25% vide Circular
No.49/2005-Cus. dated 29.11.2005. It has
now been decided to extend the facility of nil / reduced rate of bank guarantee
as provided under para 3.1 (a), (d),(e) & (f) of the said
circular to all the service providers who meet the criteria prescribed
in the said paragraph and other criteria of the said circular as amended.
2.1. In view of the modifications proposed at para-2 above,
the table in para-3.1 of the circular No.58/2004-Cus shall be replaced with the
following table and the note.
(a) All exporters who
have an export turnover of ₹ 5 crores of
goods exported physically or of services in current or preceding financial year
and having a good track record of three years of exports Nil
(b) Public Sector Undertaking Nil
(c) Star Export House 1[Status Holders recognized under the
provisions of the Foreign Trade Policy] Nil
(d) Manufacturer
exporters / Service Providers registered with Central Excise or the Service Tax
authorities, as the case may be, who have been exporting during the previous
two financial years and have minimum export of ₹ 1 crore or more during the preceding
financial year. Nil
(e) Manufacturer exporter / Service Provider registered with
Central Excise or the Service Tax authorities, who has paid central excise
duty/ Service Tax of ₹ 1 crore or more, as the case may be, during the
preceding financial year. Nil
(f) (1)
Manufacturer exporters who are not covered under (a), (b),(c),(d) & (e) above. 15%
(2) Units in Agri
Export Zones (AEZs), 15%
(3) Established
Service Providers who have free foreign Exchange earnings of ₹ 50 lakhs or more
during the preceding financial year and
have a clean track record. 15%
(g) service providers
in the port handling sector who are appointed as Custodians by the jurisdictional Customs / Central Excise
authorities 25%
(h) Others 100%
Note: The exemption provided at para (g) above shall be
applicable only in respect of import of capital goods under EPCG scheme.
3. As regards extending the benefits of the above mentioned
circular to the imports under the DFIA scheme, it is observed that the DFIA
scheme is akin to the Advance Authorization scheme; both the schemes are
operated more or less with the same set of provisions under the Foreign Trade
Policy / Hand Book of Procedures. Since the Advance authorization scheme is
already covered by the said circular, it has been decided that the benefits of
the said circular may also be extended to the imports under DFIA scheme
provided they have fulfilled the other criteria of the said circular as
amended.
4. As regards considering the combined export performance /
duty payment of all the units of a manufacturer operating under single Importer
exporter code (IE code) for the purposes of deciding the eligibility of the
said importer for benefits under the said circular, it has been felt that the
exporter operating under one IE code and having different units is basically
one legal entity. Accordingly it has been decided that the combined export
performance / duty payment of all the units of a manufacturer exporter
operating under a single IE-Code shall be considered for extending the benefits
of the said circular provided all such individual units are separately
registered with the Central Excise department and they have fulfilled the other
criteria of the said circular.
5. These instructions may be brought to the notice of the
trade / exporters by issuing suitable Trade / Public Notices. Suitable Standing orders/instructions may be
issued for the guidance of the assessing officers. Difficulties faced, if any, in implementation
of the Circular may please be brought to the notice of the Board at an early
date.
Receipt of this Circular may kindly be acknowledged.
Yours faithfully,
(P.V.K. Rajasekhar)
OSD(Drawback
********************
Notes :
1. Inserted vide M.F. (D.R.) Circular No. 32/2009-Cus., dated
25-11-2009
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