Circular No. 29 dated 26^th March 1995

I am directed to refer to the correspondence resting with Board's letter F.No. 473/25/90-CUS-VII dated 30.9.91 on the above subject and to say that as a measure of further relaxation it has been decided that only 5% bank guarantee along with the transit bond equal to the amount of duty may be insisted from 100% EOU/ EHTP/ EPZ units in respect of capital goods and raw material /components/ consumables etc. for the first three years of operation, on the condition that re-warehousing certificates in respect of the consignment cleared should be produced within three weeks of the dispatch, failing which the next consignments may be allowed only on transit bond supported by 100% Bank Guarantee. Further, if the unit concerned has properly installed the capital goods, produced and exported goods in terms of the requirements, and also produced re-warehousing certificates as stipulated above, then on the basis of the recommendation of the Collector of Customs/ Central Excise (as the case may be) the unit may be allowed in-bond movement on furnishing a Bond without Bank Guarantee for subsequent imports, whether of capital goods or other goods. This would, however, again be subject to the condition that the unit continues to provide the re-warehousing certificate within three weeks of despatch.

2.      The Board's instruction dated 30^th November 1991 may be considered modified to the above extent.