| Date: |
29-11-2000
|
| Notification No: |
Customs Circular No 97/2000
|
| Issuing Authority: |
Indian Customs
|
| Type: |
Circular
|
| File No: |
|
| Subject: |
Regarding execution of Legal Undertaking (LUT) in place of Bank Guarantee (BG) for import of goods by importers who have signed production sharing contract (PSC) with the Government of India on re-export basis under para 5.7 (a) of EXIM Policy
|
|
Regarding execution of Legal Undertaking (LUT) in place of Bank Guarantee
(BG) for import of goods by importers who have signed production sharing
contract (PSC) with the Government of India on re-export basis under para 5.7
(a) of EXIM Policy
Circular No. 97 dated 29th November 2000
I am directed to refer to the subject mentioned
above and to say that a reference in this regard has been made to Board stating
that Custom authorities are insisting on furnishing of Bank Guarantees for
import of goods by importers who have signed a Production Sharing Contract (PSC)
with the Government of India, on re-export basis under para 5.7 (a) of EXIM
Policy. A request has been made that LUT's may be accepted in lieu of BG's.
2. The matter has
been examined. As per Sl. No. 221,222,223 of notification No. 16/ 2000-Cus.,
dated 1.3.2000 specified goods required for petroleum operations are fully
exempted from custom duties subject to the conditions mentioned therein. These
conditions entail inter alia that the contractor/ importer produces an
undertaking binding him to pay any duty, fine or penalty that may become
payable. The Ministry of Petroleum & Natural Gas has written to Board in
this regard stating that import of such goods under PSC may be cleared on the
basis of the essentiality certificates issued by the Directorate of Hydro
Carbons by accepting an LUT in place of BG as provided under Para 5.7(a) of the
EXIM Policy.
3. As there is no
duty obligation on importers of such goods subject to furnishing of an
Undertaking it has been decided that furnishing of an LUT in place of BG will
suffice for the purpose of fulfillment of EXIM Policy condition. Further, as
para 5.7(a) of EXIM Policy expressly provides for taking an LUT, there appears
no necessity for insisting of BG's, Custom Houses are hereby advised to clear
such goods on the basis of LUT's furnished by importers, without insisting on
Bank Guarantee. Any difficulty encountered may be brought to the notice of the
Board.
Please acknowledge receipt of this circular.
|
|
|