Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Circular No. 26/2012-Customs
New Delhi, the 10th of September, 2012
To,
All Chief Commissioners of Central Excise & Customs
All Chief Commissioners of Central Excise
All Chief Commissioners of Customs
All Chief Commissioners of Customs (Preventive)
The Director General of Revenue Intelligence/Central Excise Intelligence/Systems
and Data Management/Export Promotion /Safeguards/Audit
The Chief Departmental Representative (CESTAT), Delhi
Subject: Grant of exemption from furnishing Security/Bank guarantee by
Central/State Government Undertakings for storing sensitive goods in private
bonded warehouses – regarding.
Reference is invited to
Circular No. 99/95-Customs dated September 20, 1995
(issued from file F. No. 473/61/94-LC) laying down the procedure for licensing
of Private Bonded Warehouses under Section 58 of the Customs Act, 1962.
Paragraph 3 (viii) of the Circular stipulates inter alia, that “In respect of
individual consignments to be warehoused, the licencees are to give a double
duty bond as required under the law. In respect of sensitive goods we may take a
cash deposit or bank guarantee equal to 25% of the duty liability (effective
duty foregone) for each consignments”. In this connection, a reference has been
received from M/s. India Tourism Development Corporation Limited, a Government
of India Undertaking, seeking exemption from furnishing Bank guarantee for
storing sensitive goods in duty free shops operated by them.
- The matter has been examined in the Board. As a measure of relaxation to the
Central/State Government Undertakings, as has been done in case of relaxation of
requirement of Bank guarantee/security for Custodians of Sea Ports and Air Cargo
Complexes/ICDs/CFSs (Circular No. 34/02-Customs dated June 26, 2002 and
Circular
No. 13/02-Customs dated February 22, 2002 refers), it is clarified that all
Central and State Public Sector Undertakings shall be exempt from furnishing
Bank guarantee or other form of security for storing sensitive goods in the duty
free shops operated by them. The execution of a double duty bond and other
requirements stipulated under Circular No. 99/95-Customs dated September 20,
1995 would, however, remain.
- Publicity to this Circular may be given by way of issuance of public notice
and standing order.
- Difficulties, if any, faced in the implementation of this circular, may be
immediately brought to the notice of the Board.
- Please acknowledge receipt.
- Hindi version follows.
Yours faithfully,
(M. Satish Kumar Reddy)
Director (ICD)
F. No. 473/16/2012-LC