| Date: |
19-06-1998
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| Notification No: |
Customs Circular No 42/1998
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| Issuing Authority: |
Indian Customs
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| Type: |
Circular
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| File No: |
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| Subject: |
Regarding Customs and 100% EOUs and EPZs Units - Execution of a single B- 17 bond in lieu of the different bonds being executed at present
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Regarding Customs and 100% <a href='http://www.eximguru.com/exim/eou/default.aspx'>EOU</a>s and EPZs Units - Execution of a single B-
17 bond in lieu of the different bonds being executed at present
Circular
No. 42dated
19th June 1998
I am directed to refer to Board's Circular No.
14/98-Cus dated 10. 3. 98 issued from F. No. 305/107/97 - FTT regarding
execution of the single bond in lieu of different bonds being executed at
present by 100% EOUs/ EPZs units which has been notified vide Notification No.
6/98-CE (NT) dt. 2. 3. 98 called B-17 bond. It was provided in the above said
circular that only surety bond has to be executed by such units.
2. It is seen that
some units specially the capital oriented units being set up by equity
participation of their foreign collaborators, are not able to organise
prescribed individual/ corporate surety equivalent to the bond amount. They have
requested that they may be allowed to furnish security for the Bond and a lower
rate for giving bank guarantee or other security be fixed.
3. The matter has
been considered by the Board and it has been decided that where the units are
unable to give a surety for the B-17 bonds as prescribed in the above said
Circular, they may be allowed to execute the bond coupled with security for 5%
(five per cent) of the value of the bond in the bond in the from of bank
guarantee of cash deposit or any other mode of securities recognized
by the Government.
4. The circular and
reference stand modified to the above extent and it may be given wide publicity
by way of issue of a Trade Notice/ Public Notice.
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