Online India Export Import Data Search

Amendment in Circular No. 52/95 allowing the relaxation of execution of bond/ bank guarantee by the parent company on behalf the subsidiary company, Customs Circular No 123/1995, 04-12-1995



Date: 04-12-1995
Notification No: Customs Circular No 123/1995
Issuing Authority: Indian Customs  
Type: Circular
File No:
Subject: Amendment in Circular No. 52/95 allowing the relaxation of execution of bond/ bank guarantee by the parent company on behalf the subsidiary company
Amendment in Circular No. 52/95 allowing the relaxation of execution of bond/ bank guarantee by the parent company on behalf the subsidiary company

Circular No. 123 dated 4th December 1995

A representation has been received by the Ministry to extend the facility of execution of BG/ Bond to the subsidiary of export house/ trading house/ star trading house/ super star trading house as has been made available to them under Circular No. 52/ Customs & 97/ 95 Customs issued from F.No. 605/75/95- DBK. It has been represented by the representations that such facility will be in conformity with the provisions of para 103(i)(d) of the Handbook of Procedures Volume- I.

The matter has been considered by the Ministry and it has been decided to exit the benefit of joint bond/ bank guarantee, which shall be signed both to the parent company as well as the subsidiary company holding the licence. The facility, however, will be subject to the following conditions:

(1)     The parent company should necessarily have more than 50% share holding in the subsidiary company.

(2)     The facility will be subject to the fact that both the parent company and the subsidiary company should have common Board of Directors. This fact can be verified from the Article of Association/ memorandum of Association of the parent company and the subsidiary company.

(3)     The bond/ bank guarantee shall be jointly signed by the parent company as well as the subsidiary company and shall be executed in terms of criteria laid down under Circular No. 52/95-Cus. as further amended by Circular No. 97/95-Cus. issued from F.No. 605/ 75/95 -DBK.

(4)     The parent company shall stand surety for the subsidiary company that in the event subsidiary company failing to fulfill the export obligation and thereupon defaulting payment of Customs Duty and interest, the parent company shall make good to Govt. revenue and the interest. In other words the parent company will be severally are jointly liable for the action in terms of the bond/ bank guarantee jointly executed by them.

The above instructions will apply mutatis mutandis both to Duty Exemption Scheme and EPCG Scheme. A Standing order for the guidance of the departmental officers and a Public Notice for the benefit of the trade may kindly be issued. A copy of SO/ PN issued on this behalf may be sent to the Commissioner (DBK) and DGI ACC & E. In case of any difficulty, the same may please be brought to the notice of the Ministry.

       

DO YOU NEED HELP?







Enquiry Form

Fields marked with an asterisk * are required.

 

+



What is New?

Date: 03-05-2016
DGFT Notification No. 06/2015-2020
Amendment in Para 5.04 (h) of FTP 2015-2020.

Date: 03-05-2016
DGFT Public Notice No. 04/2015-2020
Notification of new Appendix 5D containing the list of services for which payment is received in Rupee terms which could be counted towards discharge of Export Obligation under the Export Promotion Capital Goods(EPCG) Scheme.

Date: 03-05-2016
DGFT Public Notice No. 05/2015-2020
Amendment of ANF 3C Application for on line filing of Grant of Status Certificate.

Date: 02-05-2016
Notification No. 16/2016-Customs (ADD)
Seeks to levy definitive anti-dumping duty on imports of Measuring Tapes originating in, or exported from Chinese Taipei, Malaysia, Thailand and Vietnam for a period of five years.

Date: 29-04-2016
Customs Notification No. 60/2016 (NT)
Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver

Date: 29-04-2016
DGFT Notification No. 04/2015-2020
Status Holder-Amendment in Para 3.20(b) of ForeignTrade Policy 2015-20.

Date: 29-04-2016
DGFT Notification No. 05/2015-2020
Updation of SCOMET list [Appendix 3 to Schedule 2 of ITC (HS) Classification of Export & Import Items].

Date: 28-04-2016
RBI/2015-16/384 A.P. (DIR Series) Circular No. 64
Foreign Exchange Management (Remittance of Assets) Regulations, 2016

Date: 28-04-2016
RBI/2015-16/385 A.P. (DIR Series) Circular No. 65
Import of Goods: Import Data Processing and Monitoring System (IDPMS)

Date: 28-04-2016
RBI/2015-16/386 A.P. (DIR Series) Circular No. 66
Opening and Maintenance of Rupee / Foreign Currency Vostro Accounts of Non-Resident Exchange Houses: Rupee Drawing Arrangement



Exim Guru Copyright © 1999-2016 Exim Guru. All Rights Reserved.
The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

EximGuru.com

C/o Infodrive India
E-2, 3rd Floor, Kalkaji Main Road
New Delhi - 110019, India
Phone : 011 - 40703001