Revised Bond Form for Duty Exemption under Advance Licence and EPCG Schemes

[CBEC Circular No. 40 dated 28th October 2010]

Sub: Revised Form of Bond to be furnished for availing duty exemption under Advance License and EPCG Schemes.

I am directed to invite attention to the Board’s circular No.58/2004-Cus dated 21.10.2004 which prescribes form of bond to be furnished for availing duty exemption under Advance License and EPCG Schemes. Condition 1 of the prescribed form of bond reads as under:

“1. I / we, the obligor(s) shall observe all the terms and conditions of the said notification.”

2. The benefit of zero duty EPCG scheme which is governed by notification Nos. 101/09-Cus and 102/09-Cus both dated 11.09.09 is subject to the condition that the importer should not have been issued in the year of issuance of zero duty EPCG authorization, the duty credit scrips under SHIS scheme. Since there are conditions in the EPCG notification which an authorization holder should fulfil at the time of import for being eligible for duty exemption, it has been decided to change condition 1 of the prescribed form of bond as under:

“1. I/we, the obligor(s) fulfil all the conditions of the said notification and shall observe and comply with all its terms and conditions.”

3. A suitable Public Notice for information of the Trade and Standing Order for guidance of the staff may be issued. Difficulties faced, if any in implementation of this circular may be brought to the notice of the Board.

F.No.605/91/2009-DBK