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Execution of a single bond in lieu of the different bonds being executed
at present regarding Customs and 100% <a href='http://www.eximguru.com/exim/eou/default.aspx'>EOU</a>s and Units in EPZs
Circular
No. 14
dated
10th March 1998
I am directed to refer to the Board's instructions
issued under this office letter of even number dated 23rd March, 1992 wherein
the the format of a single bond required to be executed by the 100% EOUs or
units in the Export Processing Zones STP/ EHTP was forwarded. Similar
instructions were issued by the Central Excise, Wing, for execution of bonds for
the goods procured under CT-3 Certificate by such units vide Notf. No. 1/ 95-CX
dated 4th January 1995 Instructions also exist for execution of bond
when the goods are in-transit from the port of import to the unit. The goods
sent out for job work, are also required to be covered by the bond coupled with
the bank guarantee as per. Board's instruction.
2. The Trade and the
Industry has been persistently representing that the number of bonds to be
executed with the Customs and Excise Wing of the Department may be reduced and a
single all purpose bond for covering liability of duty etc. under Excise and
Customs Acts may be formulated to obviate the difficulties faced by the units.
The issue has also been echoed in the meeting of Export Promotion Board Chaired
by the Cabinet Secretary.
3. An in- depth
examination of the issue was undertaken by the Board in consultation with
Ministry of Law and a new format of the bond covering liabilities both under
Customs & Central Excise Acts to be executed by 100% EOUs and the units
situated in EPZ/ FTZ or STP/ EHTP Schemes or stand alone 100% STP/ EHTP units
has been notified vide Notification No. 6/ 98-CE (NT), dated 2. 3. 1998. This
Bond is called B-17 (General Surety/ Security).
4. Kindly ensure
that in future only one bond is taken from the above said units for all
purposes. All previous instructions issued in this behalf may be treated as
modified to this extent. This bond will be executed before the Assistant
Commissioner of Customs/ Central Excise or Assistant Commissioner of Customs
& Central Excise in whose jurisdiction the unit is situated. Although the
bond is devised to be executed as surety or security bond, it has also been
decided that only surety bond has to be taken from such units. The bond amount
has to be equivalent to double the amount of duty calculated on the goods to be
imported/ procured duty free from the manufacturing unit.
5. The Assistant
Commissioner of Customs or Central Excise before whom the above bond will be executed
would issue a certificate in the format enclosed stating that the bond has been
executed by the unit in his charge. On the strength of this certificate the
goods will be allowed clearance under the exemption Notification from Port of
import/ Airport/ ICD/ another EOU/ STP/ EHTP/ unit in EPZ or Bonded Warehouse to
the unit. Also on the strength of this bond, the Bond Officer will permit goods
for job work outside the unit. In case the re-warehousing certificate is not
received within 90 days of the issue of the certificate, the Assistant
Commissioner incharge of the port/ Airport/ ICD/ EOU/ STP/ EHTP etc. or the
manufacturing unit shall write to the A. C. incharge of the EOU to issue demand
notice to EOU for recovery of duty.
6. For procurement
of duty free goods from the domestic manufacturers, however, the certificate
appended in annexure-II of the Notification No. 1/ 95-CE would continue to be
used. The existing procedure of Bill of Entry and AR-III. A accompanying the
goods shall continue. You are requested to give wide publicity to the above
changes by issue of a suitable public Notice/ Trade Notice.
7.
Kindly acknowledge receipt of this letter.
CERTIFICATE FOR
PROCUREMENT AND MOVEMENT OF IMPORTED GOODS/ EXCISABLE GOODS WITHOUT PAYMENT OF
DUTY
Sr. No_______________
This is to certify that: -
(1) M/ s.
_______________________________ (Name & Address)
________________________________ is/ are registered in this range of division
__________________________________ of Central Excise/
________________________Commissionerate.
(2)
The said registrant has executed a bond prescribed for them for
Rs_____________________________ with appropriate surety.
(3) This registration
authorities him/her/them to obtain/ clear (name of the product) falling under
Chapter No ______________ heading No. ____________ of the Central Excise Tariff/
Customs Tariff at nil rate of duty under Notification No. __________________
dated ____________ 1998 from ___________________ Port/ ICD/ EOU/ EHTP/ STP/ EPZ
unit or Bonded warehouse for the manufacture of _________________ / use at
_______________.
(4)
The said goods may be allowed clearance of at nil rate of Duty under
intimation to undersigned.
Supt. Customs/ Central
Excise
To
(Address of the Officer/
Custom Officer)
(Name and
Seal)_______________
Dated ______________
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