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Export Against Supply by Foreign Buyer- Clarification Regarding the
Amount of Bank Guarantee to be Furnished under the Scheme
Customs
Circular No. 50 dated 12th August 2002
I
am directed to invite your attention to the Board�s Circular No.36/2002-Cus.
dated the 28th June 2002 on the above subject.
2.
It has been brought to the notice of the Board that in case of import of
silver under the above said notification, the importers are being asked to
furnish bank guarantee on the basis of tariff rate of duty applicable to silver
and not on the basis of effective rate of duty on silver when imported by the
nominated agencies. It has been requested that the bank guarantee should be
worked out taking the duty on silver at the rate of Rs. 500/- per kg. i.e. the
rate of duty as applicable to the nominated agencies under Notification No. 80/
97-Cus. dated 21.10.97.
3.
The matter has been examined. At present, the nominated agencies are
allowed to import silver on payment of duty at the rate of Rs. 500 per kg. under
notification No. 80/ 97-Cus. dated 21.10.97. To bring down the transaction cost
of exports, it has been decided that for the purpose of calculation of bank
guarantee amount in case of import of silver under the scheme �Export Against
Supply by Foreign Buyer�, the duty rate on silver will be taken at the rate of
Rs. 500/- per kg.
4.
The Circular No. 36/ 2002-Cus. dated 28th June 2002 stands
amended to the above extent.
5.
Wide publicity may be given by issue of a Public Notice in this regard.
6.
Difficulties, if any, faced in the implementation of above instructions,
may be brought to the notice of the Board at an early date.
Kindly
acknowledge receipt of this Circular.
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