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Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes & Customs
(Directorate General of Export Promotion)
Circular No. 27/2018-Customs
New Delhi, Dated: 14th August, 2018
To,
All Pr. Chief Commissioners/ Chief Commissioners of Customs/ Customs (Prev.)
All Pr. Chief Commissioners/ Chief Commissioners of Central Tax and Central Excise
All Pr. Commissioners/ Commissioners of Customs/ Customs (Prev.)
All Pr. Commissioners/ Commissioners of Central Tax and Central Excise
Subject: Clarification regarding bank guarantee requirement for bond
executed by EOUs-reg.
Madam/Sir,
Various representations have been received regarding difficulties faced by EOUs
with respect to requirements of bank guarantees in view of
Circular no. 48/2017-
Customs dated 08.12.2017 issued by CBIC. The matter has been examined.
2. Clarification issued vide
Circular no. 48/2017-Customs dated 08.12.2017 is
with respect to Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017
notified vide
Notification no. 68/2017-Customs (NT) dated 30.06.2017. Vide the said
Circular, various norms have been prescribed with respect to requirement of bank
guarantee/ cash security/ surety for various categories of importers which is required
to be furnished for the bond to be executed as per sub-rule (2) of Rule 5 Customs
(import of goods at concessional rate of duty) Rules, 2017. No specific reference has
been made to EOUs in these norms.
3. The confusion is arising on account of the requirement of EOUs to follow Rule 5
of Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 to be eligible
for claiming exemption of duties/ taxes on the import of goods under
Notification no.
52/2003 dated 31.03.2003.
As the EOUs have already been executing B-17 bond,
hence it was clarified vide
Circular no. 29/2017-Customs dated 17.07.2017
that the
said B-17 bond will serve the requirement of continuity bond as required under
Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 and there is no
requirement to submit a separate continuity bond by EOUs. As B-17 bond is serving
the purpose of continuity bond for EOUs, hence various circulars issued by the Board
extending the facility of exemption from furnishing bank guarantee/ surety by EOUs
namely
Circular no. 54/2004-Customs dated 13.10.2004 and
circular no. 36/2011-
Customs dated 12.08.2011 will continue to hold good, as these circulars are in line
with the Para 6.12 of the Foreign Trade Policy which lays down the conditions for
EOUs to be exempted from furnishing of bank guarantee.
4. In view of above, it is reiterated that waiver of bank guarantee/ surety to EOUs
would continue to be governed by various circular issued from time to time by CBIC
with regard to B-17 bonds executed by EOUs and will not be guided by the
Circular
no. 48/2017-Customs dated 08.12.2017 which governs the general importers and not
the EOUs.
5. Difficulties, if any, may be brought to the notice of the Board.
6. Hindi version will follow
F.No. DGEP/EOU/GST/Misc/24/2017
Yours faithfully,
Sd/-
(Saroj Kumar Behera)
Joint Director
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