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Circular No. 18/2019-Customs

F.No. DGEP/G&J/22/2018
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes & Customs
(Directorate General of Export Promotion)
******

New Delhi, Dated: 05th July, 2019

To,

All Pr. Chief Commissioners/ Chief Commissioners of Customs/ Customs &
Central Tax/ Customs (Preventive)

All Pr. Commissioners/ Commissioners of Customs/ Customs & Central Tax/
Customs (Preventive)


Subject: Partial discharge of bonds executed by nominated agencies/
banks under notification No. 57/2000 -Customs dated
08.05.2000.

Madam/ Sir,


Circular No. 25/2018-Customs dated 08.08.2018 has prescribed
standard operating procedures for the expeditious discharge of the bonds
executed by nominated agencies/ banks under notification No. 57/2000 -
Customs dated 08.05.2000, as a measure of trade facilitation.
2. Presently, bonds are credited and closed only after entire imported goods
(meant for export after prescribed value addition/wastage norms) have been
used and exported as finished goods. These bonds and corresponding bank
guarantees some times remain outstanding in full due to non availability of
facility of partial credit against that quantity of import of gold for which export
obligations have been fulfilled. This hinder the expeditious discharge of bond
leading to capital blockage of exporter. Thus puts unnecessary burden on the
exporters.
3. Various representations were received from Gems & Jewellery export
promotion council that partial crediting of Bonds and Bank Guarantees,
submitted at the time of import of gold, may also be facilitated in proportion to
the export obligations fulfilled for which necessary prescribed documentation
evidencing the same has been provided to the jurisdictional customs
authorities.

4. The matter has been examined, in consultation with Directorate General
of Systems. In order to address the above said issue a new provision has been
developed in ICES 1.5 to proportionately credit the Bond and Bank Guarantee
online as and when the exports are being made, partially against the said Bond
and Bank Guarantee . Directorate General of Systems will issue system
advisory giving details of the new functionality regarding partial crediting of RE
bond in ICES.
5. The procedure and the timeline prescribed vide Circular No. 25/2018-
Customs dated 08.08.2018 will apply mutatis-mutandis to partial discharge of
bonds also.
6. Difficulties, if any, may be brought to the notice of the Board.
7. Hindi version follows.

Yours faithfully,

Sd/-
(Saroj Kumar Behera)
Additional Director
circulars no 18 2019 | iKargos