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Clarifications regarding Private/ Public Bonded Warehouses for diamonds/
coloured gemstones under paragraph 8.13 of Exim Policy 1997-2002
Circular No. 59dated 6th September 1999
I am directed to
refer to Board's Circular No. 47/ 99-Cus., dated the 27th July, 1999 issued from
F.No. 305/ 60/ 98-FTT on the above subject.
2. After
issued of the said circular, References have been received, both from trade and
the Ministry of Commerce, on the issue of furnishing of Bank Guarantee/ Cash
Deposit. It has been stated that the requirement of cash deposit or Bank
Guarantee equal to 50% of the duty liability along with the Bond as security is
not conductive to export growth of the Indian diamond industry.
3. The
matter has been examined in consultation with the Ministry of Commerce and it
has been decided that the following categories of exporters may be exempt from
the requirement of furnishing any bank guarantee/ cash security or surety,
namely-
(a) Exporters
holding the status of Super Star Trading House/ Star Trading House/ Trading
House/ Export House under the EXIM Policy 1997-2002.
(b) Exporters
having post export performance as given at Serial No. 3 of the table given in
the Paragraph 8.14 of Handbook of Procedure, Vol. I, 1997-2002 and where the
value of import under the provision of Paid 8.13 of EXIM policy does not exceed
two times of FOB value of exports of Cut & Polished Diamond, made during the
preceding licensing year.
(c) Overseas
companies with the branch office in India having an average annual export
turnover of not less than Rs. 150 crores in the preceding three licensing year.
For the aforesaid three categories of exporters, Legal undertaking (LUT)
in lieu of bank guarantee/ cash security may be obtained. In other cases i.e.
other than (a) to (c) above, the requirement of Bank Guarantee/ Cash Deposit
would be 25% in lieu of 50% of the duty fixed earlier.
4. Board's Circular
No. 47/ 99-Cus, dated 27/ 7/ 99, stands modified to the above extent.
5. Wide publicity
may be given by issue of a Public Notice in this regard.
6. Kindly
acknowledge receipt of this Circular. Difficulties, if any, faced in the
implementation of the above changes, may be brought to the notice of the Board
at an early date.
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