TMI BlogWaiver of Bank Guarantee for Procurement without payment of dutyX X X X Extracts X X X X X X X X Extracts X X X X ..... Dear sir, We are Mfg of Chemical and pharma product and wants to procure materials under Customs (Import of goods at concessional rate of duty for manufacturing of excisable goods) rules,1996 . We are also three start status holder export house, can we require bank guarantee for above facility ?? If we have not require bank guarantee, please provide related notification with condition . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Advance thanks for provide valuable feedback . regards, SNE - Reply By Atul Deshmukh - The Reply = Dear Snehal, Since you are Status Holder, you need not to execute Bank Guarantee (BG) at the time of duty free imports against Advance Authorisation ( Chapter 4 of FTP ). Instead, you need to furnish Legal Undertaking ( LUT ) to the customs authority (i.e. customs at the sea/ air por ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t from where you will be importing the material) and Bond, duly franking of ₹ 500/- each done on it. In this regard, you may refer to Para 3.24 (C) of Foreign Trade Policy (Privileges of Status Holders) and Para 2.29 2.30 of Handbook of Procedures . There also exist a provision of Corporate Guarantee ( Para 2.30 of HBP ) in lieu of normal Bang Guarantee. Please refer to the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame, if needed. Regards, Atul - Reply By Atul Deshmukh - The Reply = Dear Snehal, Please also refer to Customs Circular No. 58/2004 Dtd. 21.10.2004 and Circular No. 15/2014 Dtd. 18.12.2014 to evidence NIL applicability of BG to Status Holder. Regds, Atul - Waiver of Bank Guarantee for Procurement without payment of duty - Query Started By: - SNEHAL SHAH Dated:- 2-3-2016 Cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stoms - Import - Export - Customs - SEZ - Got 2 Replies - Customs - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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