Government of India
Ministry of Commerce & Industry
Department of Commerce
Directorate General of Foreign Trade
Udyog Bhawan, New Delhi-110011
Public Notice No. 38(RE:2010)/2009-2014
The 9th March, 2011
Subject: Amendment in Appendix 25A, HBP Vol.I (Appendices and Aayat Niryat
Forms) regarding periodicity of Bank Guarantee (BG) to be executed with Regional
Authorities in case of domestic procurement of goods against EPCG authorization.
In exercise of powers conferred under paragraph 2.4 of the Foreign Trade Policy,
2009-2014, the Director General of Foreign Trade hereby makes the following
amendments in the Appendix 25A of Handbook of Procedures Vol.I (Appendices and
Aayat Niryat Forms) 2009-2014:
Amendment:
- The existing Note at the bottom of Appendix 25 A “The Bank Guarantee shall
be valid till the expiry of the export obligation period plus six months” shall
be substituted by the following:
“The Bond/ BG shall be filed for a minimum period of three years with an
undertaking to keep the BG alive for the entire period of export obligation
viz.8+2=10 years or 12+2=14 years, as the case may be.”
- The details regarding E-mail ID, Phone/FAX Number of the exporters and Bank
Guarantor have been added in Para 1 of Appendix 25A.
Effect of Public Notice:
Validity of Bank Guarantee is being harmonized with provisions of Customs
Circular No.58/2004 dated 21.10.2004 as amended from time to time. In addition,
specific contact details like E-mail ID, Phone Number/FAX Number of the exporter
and the Bank are to be provided.
Sd/-
(Anup K Pujari)
Director General of Foreign Trade
E-mail: dgft@nic.in
(Issued from F. No.01/36/218/169/AM-11/EPCG-I)
APPENDIX 25 A
BANK GUARANTEE FORMAT
To,
The President of India
Acting through the Director General of Foreign Trade
In consideration of the President of India, acting through the Director General
of Foreign Trade (which expression shall be deemed to include the Joint Director
General of Foreign Trade/Deputy Director General of Foreign Trade), or any other
authority for the time being authorised to perform the duties of Joint Director
General of Foreign Trade/Deputy Director General of Foreign Trade), Ministry of
Commerce, Government of India, New Delhi (hereinafter referred to as the
Government) having agreed to grant to ___________________(full expanded name,
E-mail I.D, Phone No./Fax. No. of the Importer/Exporter with complete address)
(hereinafter referred to as Importer/Exporter) an Authorisation being
Authorisation No.__________ dt.____ (hereinafter referred to as Authorisation
for the import of the goods mentioned therein) for a value of Rs._________
(Rupees ___________________ only) under the___________________ Scheme (fill up
the actual Scheme) notified by the Government under the Foreign Trade Policy
2009-14 as may be amended from time to time (hereinafter referred to as scheme)
on the terms and conditions specified in the said Authorisation which term inter
alia stipulates production of a Bank guarantee for Rs._________________
(Rupees___________ only). We ____________________ (indicate the name, E-mail
I.D, Phone No./Fax. No and full address and other particulars of the Bank)
(hereinafter referred to as Bank) at the request of the Importer/Exporter do
hereby unconditionally and irrevocably undertake to pay the Government an amount
not exceeding Rs.____________ against any loss or damage caused to or suffered
by the Government by reason of any failure on the part of the said Importer/
Exporter of any of the terms or conditions contained in the said Authorisation
including the export obligation mentioned therein.
- We ___________________ (indicate the name of Bank) do hereby undertake to pay
the amounts due and payable under this guarantee without any demur or protest,
merely on a demand from the Government stating that the amount claimed is due by
way of loss or damage caused or suffered by the Government by reason of breach
by the Importer/Exporter of any of the terms or conditions of the said Authorisation. Any such demand made on the Bank shall be conclusive as regards
the amount due and payable by the Bank under these presents.
- We undertake to pay to the Government any money so demanded notwithstanding
any dispute or disputes raised by the Importer/Exporter in any suit or
proceeding pending before any court or Tribunal relating thereto and our
liability under these presents being absolute and unequivocal.
- We,_________________(indicate the name of Bank) further agree that the
guarantee herein contained shall remain in full force and effect during the
period that would be taken for the performance of the said Authorisation and
that it shall continue to be enforceable till all the obligations of the
Importer/Exporter under or by virtue of the said Authorisation have been fully
discharged to the satisfaction of the Government or till Jt.DGFT/Dy.DGFT, or any
Licensing authority for the time being authorised to perform the duties of
Jt.DGFT/Dy.DGFT, Ministry of Commerce, New Delhi certifies that the terms and
conditions of the said Authorisation have been fully and properly carried out by
the Importer/Exporter and accordingly discharges this guarantee. Provided,
however, unless a demand or claim under this guarantee is made on us in writing
on or before the ______________. We shall be discharged from all liability under
this guarantee thereafter.
- We ____________________ (indicate the name of bank), further agree with the
Government that the Government shall have the fullest liberty without our
consent and without affecting in any manner our obligations hereunder (i) to
vary any of the terms and conditions of the said Authorisation and modify the
said scheme from time to time or (ii) to extend time of performance by the said
Importer/Exporter from time to time or to postpone for any time or (iii) from
time to time any of the powers exercisable by the Government against the said
Importer/Exporter and to forbear or enforce any of the terms and conditions
relating to the said Authorisation and we shall not be relieved from our
liability by reason of any such variation, or extension being granted to the
said Importer/Exporter for any forbearance, act or omission on the part of the
Government or any indulgence by the Government to the said Authorisation holder
or by any such matter or thing whatsoever which under the law relating to
sureties would, but for this provision, have effect of so relieving us.
That this shall be a continuing Bank Guarantee and shall not be discharged by
any change in the constitution of the importer/exporter or of the Bank.
That the guarantor will not revoke the guarantee without prior written consent
of the Government.
"Dated the_______________day of____________year_________ for
______________________ indicate the name of the Bank)"
Note: “The Bond/ BG shall be filed for a minimum period of three years with an
undertaking to keep the BG alive for the entire period of export obligation
viz.8+2=10 years or 12+2=14 years, as the case may be.”