TMI BlogExecution of a Single B-17 Bond by EOU /EPZ/ EHTP/ STP Units - Clarification regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... 8 on the above subject. 2. It has been brought to the notice of the Board by Trade as well as the Ministry of Commerce that the B-17 bond with 100% surety or Bank Guarantee at 5% of the bond amount, instead of simplifying the procedure, has made the operations of the EOU/EPZ/STP/EHTP units more expensive and the units find it difficult to organise the said surety/bank guarantee, particularly in cases where the units have to make huge investment on capital goods. 3. The issue has been examined by the Board and it has been decided that the bond amount will now be equivalent to 25% of the duty leviable on the sanctioned requirement of imported and indigenous capital goods plus the duty forgone on the raw materials to be held in stock for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e under exemption notification will be allowed to the EOU/EPZ/STP/EHTP units at the port of import. The value and quantity of goods to be imported and the bond amount shall be monitored by jurisdictional Assistant Commissioner of Customs or Central Excise. Hence, it is clarified that no other certificate other than the certificate annexed to Circular No.14/98, dated 10-3-1998, is required to be produced at port of import by EOU/EPZ/STP/EHTP units. It is further clarified that the monitoring at the port of import shall be limited to the extent of ensuring that the goods imported by the units are warehoused in the units within the prescribed time limit and re-warehousing certificate is submitted to the Assistant Commissioner of Customs at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioner in charge of the port of import shall intimate the Assistant Commissioner of Customs or Central Excise in charge of the units for issuing a demand notice to recover the duty/penalty etc. (v) As stated above, B-17 bond is an all-purpose bond, thus it is also a transit bond. Hence, no Customs escort shall be insisted upon for movement of duty free goods from the Airport/ICD etc. to the unit or from unit to Airport/ICD or to any other place, say, job worker's premises, provided the same is permitted by jurisdictional Assistant Commissioner. 6. It is further clarified that : (i) Only single B-17 bond may be insisted from the units and requests for execution of multiple bonds as existed earlier should not be entertained. (ii) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bond in respect of capital goods shall not stand discharged on arrival of the capital goods within the unit/warehouse and the security/surety shall not be discharged so long as the capital goods are in the unit. The duty for debiting the bond amount in respect of capital goods/raw materials will be as per duty forgone amount given in the Bill of Entry/AR-3. This monitoring will be done by Assistant Commissioner in charge of the unit and on broad basis rather than going into intricate details of input-output norms etc. 7. Circular Nos. 14/98-Cus., dated 10-3-1998 , 42/98-Cus., dated 19-6- 1998 and 66/98-Cus., dated 15-9-1998, stand modified to the above extent. 8. Wide publicity may be given in the form of Public Notice in this regar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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