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Government of India
Ministry of Finance
Department of Revenue
Central
Board of Indirect Taxes & Customs
(Drawback Division)
Circular
No. 31/2019-Customs
4th Floor, Jeevan Deep Building,
Parliament Street, New Delhi
Dated 13th
September, 2019
To
All Principal Chief Commissioners/ Chief Commissioners of
Customs/Customs (Preventive)/ Central Tax/Central Excise
and All Principal Directors General/Directors General
under CBIC
Madam/Sir,
Subject:- Revised Norms for Execution of Bank Guarantee under Advance Authorisation,
DFIA and EPCG Schemes - reg.
Board is in receipt of references from field formations and inputs from trade and
industry seeking clarification as to what should be the basis for waiver of Bank Guarantee to be
executed with Customs in the Goods and Services Tax (GST) regime under AA, DFIA and EPCG
schemes in respect of manufacturer exporters/service providers.
2. The matter has been examined. GST has come into force from 01.07.2017 whereby
Service Tax as well as major portion of Central Excise have been subsumed in the GST. Board’s
Circular No. 58/2004-Cus dated 21.10.2004 (hereinafter referred to as 'the said Circular’) as
amended vide
Circular Nos. 17/2009-Cus dated 25.05.2009,
32/2009-Cus dated 25.11.2009,
06/2011-Cus dated 18.01.2011,
08/2013-Cus dated 04.03.2013 and
15/2014-Cus dated
18.12.2014 inter alia prescribes the norms for execution of Bond/Bank Guarantee in respect of
imports made under the AA, DFIA and EPCG Schemes. The said Circular and amending Circular
No. 17/2009-Cus dated 25.05.2009 extend exemption from execution of Bank Guarantee based
on export turnover, quantum of duty, tax paid etc.
3. In the wake of GST regime, the norms for execution of Bank Guarantee under AA, DFIA
and EPCG schemes have been reviewed and the following clarification is given:-
(i) Manufacturer exporters/Service Providers registered with the GST authorities
(Centre/State/Union Territory) who have been exporting during the previous two financial
years and have minimum export of Rs. 1 crore or more during the preceding financial year shall
also be eligible to claim exemption from furnishing Bank Guarantee under category (d) of
importers specified in Table given in para 3.1 of the said Circular.
(ii) Manufacturer exporters/Service Providers registered with the GST authorities
(Centre/State/Union Territory) who have paid GST of Rs.1 crore or more during the preceding
financial year shall also be eligible to claim exemption from furnishing Bank Guarantee under
category (e) of importers specified in Table given in para 3.1 of the said Circular.
4. In order to avoid difficulties in the GST regime regarding furnishing of proof of export
performance or payment of duty required to be certified by the jurisdictional Superintendent of
Central Excise (para 3.2(b) of the said Circular), it has been decided to discontinue the
requirement for procurement of such certificate from Central Excise authorities. In other
words, in cases where the AA/DFIA/EPCG authorisation holder is a registered member of an
Export Promotion Council, he shall produce a certificate of export performance or payment of
duty/GST for the purpose of availing Bank Guarantee exemption from the concerned Export
Promotion Council on the lines of similar facility available earlier. In cases where the
AA/DFIA/EPCG authorisation holder is not a registered member of an Export Promotion
Council, he may produce such certificate duly authenticated by a practicing Chartered
Accountant who is registered with the GST Department (Centre/State/Union Territory) for
payment of GST. This is also on the lines of similar facility available earlier. The Chartered
Accountant will mention his GSTIN and other registration details in the certificate on the lines
stipulated earlier.
5. The other provisions of the said Circular, as amended from time to time, remain
unchanged. A suitable Trade Notice and Standing Order may be issued for the guidance of the
trade and staff. Difficulties faced, if any, in implementation of the Circular may be brought to the
notice of the Board at an early date.
6. Receipt of the Circular may kindly be acknowledged.
F.No.605/25/2019-DBK
(Ravi Kant)
OSD (Drawback)
Tel: 011 2336 2843
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