Revised Norms for Execution of Bank Guarantee under Advance Authorisation, DFIA and EPCG Schemes

NO. CLE-HO/POL/CIRCULAR/2019
October 11, 2019

Members of the Council

Sub : Revised Norms for Execution of Bank Guarantee under Advance Authorisation, DFIA and EPCG Schemes

Dear Member,

Please find enclosed Customs Circular No.31/2019-Customs dated 13.09.2019 on the above subject. This Circular states the following.

i)                   Manufacturer exporters/Service Providers registered with the GST authorities (Centre/State/Union Territory) who have been exporting during the previous two financial years and have minimum export of Rs. 1 crore or more during the preceding financial year shall also be eligible to claim exemption from furnishing Bank Guarantee under category (d) of importers specified in Table given in para 3.1 of the said Circular.

(Note : Aforementioned para 3.1 provided exemption from bank guarantee to certain categories of exporters)

ii)                 Manufacturer exporters/Service Providers registered with the GST authorities (Centre/State/Union Territory) who have paid GST of Rs.1 crore or more during the preceding financial year shall also be eligible to claim exemption from furnishing Bank Guarantee under category (e) of importers specified in Table given in para 3.1 of the said Circular.

iii)               In order to avoid difficulties in the GST regime regarding furnishing of proof of export performance or payment of duty required to be certified by the jurisdictional Superintendent of Central Excise (para 3.2(b) of the said Circular), it has been decided to discontinue the requirement for procurement of such certificate from Central Excise authorities. In other words, in cases where the AA/DFIA/EPCG authorisation holder is a registered member of an Export Promotion Council, he shall produce a certificate of export performance or payment of duty/GST for the purpose of availing Bank Guarantee exemption from the concerned Export Promotion Council on the lines of similar facility available earlier. In cases where the AA/DFIA/EPCG authorisation holder is not a registered member of an Export Promotion Council, he may produce such certificate duly authenticated by a practicing Chartered Accountant who is registered with the GST Department (Centre/State/Union Territory) for payment of GST. This is also on the lines of similar facility available earlier. The Chartered Accountant will mention his GSTIN and other registration details in the certificate on the lines stipulated earlier.

Copies of the aforesaid Customs Circular No.31/2019-Customs dated 13.09.2019 and all previous circulars issued in this regard are enclosed herewith for ready reference of members.

Thanks & regards,

R.Selvam
Executive Director