Department of Revenue
Government of India
Ministry of Finance
Circular No. 06 /2011-Customs
New Delhi, the 18th January, 2011
To,
All Chief Commissioners of Customs / Customs & Central Excise.
All Directors General of CBEC /CDR, CESTAT.
All Commissioners of Customs & Central Excise.
Sir/Madam,
Sub : Norms for Execution of Bank Guarantee in respect of Advance Authorization
/ Duty Free Import Authorization (DFIA) / Export Promotion Capital Goods(EPCG)
Schemes – reg.
The undersigned is directed to invite your attention to
Circular No.58/2004-Cus.
dt.21.10.2004 on the above subject as amended by
Circular Nos.17/2009-Cus.
dt.25.5.2009 and
32/2009-Cus. dt.25.11.2009 and to state that references have
been received with reference to para 3.2(c) of the
Circular No. 58/2004-Cus.
dt.21.10.2004. Para 3.2(c ) of the said Circular, interalia, stipulates that
exemption from Bank Guarantee contemplated therein will not be available in case
the licence holder has been penalized under the provisions of Customs Act,1962,
the Central Excise Act,1944, the Foreign Exchange Management Act (FEMA),1999 or
the Foreign Trade (Development and Regulation) Act,1992 during the previous
three Financial years.
- It has been informed that many a time requests are received from importers
for exemption from Bank Guarantee on the ground that penalty imposed on them was
on account of offences which were technical in nature. It has been suggested
that exemption from Bank Guarantee may not be denied in cases of technical
offences.
- The issue has been examined. It is noted that the Board has recently relaxed
the criteria for accreditation of importers under the Accredited Clients Programme (ACP) vide circular No.29/2010-Cus. dt.20.8.2010. According to the
said circular, the importer for availing the facility under ACP should not have
any cases of Customs, Central Excise or Service Tax, as detailed below, booked
against them, in the previous three financial years:
- Cases of duty evasion involving mis-declaration / mis-statement/collusion /
willful suppression / fraudulent intent whether or not extended period for issue
of Show Cause Notice (SCN) has been invoked.
- Cases of mis-declaration and/or clandestine/unauthorized removal of
excisable / import / export goods warranting confiscation of said goods.
- Cases of mis-declaration / mis-statement / collusion / willful suppression /
fraudulent intent aimed at availing CENVAT credit, rebate, refund, drawback,
benefits under export promotion/reward schemes.
- Cases wherein Customs/Excise duties and Service Tax has been collected but
not deposited with the exchequer.
- Cases of non-registration with the Department with intent to evade payment
of duty / tax.
- It has been decided that the above criteria may be adopted and para 3.2( c)
of Circular No. 58/2004-Cus. modified to this extent. Thus offences, other than
those stipulated at para 3 above, would not result in denial of the benefit of
Circular No.58/2004-Cus. In order to verify whether the Authorization holder
meets the above criteria, he may be asked to furnish an affidavit stating
whether any case(s) involving mis-declaration, suppression etc. as mentioned in
para 3 above have been booked against him during the previous three Financial
years under the provisions of the Custom Act,1962,Central Excise Act,1944, the
Foreign Exchange Management Act (FEMA), 1999, the Foreign Trade (Development and
Regulation) Act,1992 and the Service Tax (Finance Act,1994).In case the details
reveal violation(s) of the type mentioned above under the provisions of the
above mentioned Acts then the benefit of Circular No. 58/2004-Cus.will not be
extended. The Commissioners shall ensure that some of the affidavits furnished
are cross checked randomly with the field formations for their veracity.
- 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,
(M.V.V.SURYA NARAYANA)
OSD (DRAWBACK)
F.NO.609/119/2010-DBK