Exemption from execution of bank guarantee under Advance Authorization (AA), Duty Free Import Authorisation (DFIA) and Export Promotion Capital Goods (EPCG) schemes – Certificate of CLE
No.CLE-HO/POL/CIRCULAR/20-21
Aug. 3, 2021
Members of the Council
Sub: Exemption from execution of bank guarantee under Advance Authorization (AA), Duty Free Import Authorisation (DFIA) and Export Promotion Capital Goods (EPCG) schemes – Certificate of CLE-Reg.
Dear Member
We would like to invite your kind attention to the CLE circular dated July 23, 2021 on the above subject, informing about issuance of certificates by CLE to the following categories of exporters, towards availing exemption from execution of bank guarantee under AA, DFIA and EPCG schemes, as per provisions of Customs Circular No. 31/2019 dated 13.9.19.
a) Exemption based upon Export Turnover of Rs.1 Crore:
The Manufacturer Exporters / Service Providers registered with the GST Authorities who have the minimum export of Rs.1Crore or more during the preceding financial year and who have been exporting during the previous two financial years are entitled to get the exemption.
b) Exemption based the payment of GST of Rs.1 Crore:
Similar exemption is also available to the Manufacturer Exporters / Service Providers registered with the GST Authorities who have paid the GST of Rs.1 Crore or more during the preceding financial year.
Kindly note that as per Para 2.1 (a) of Customs Circular No. 17/2009 dated 25.5.2009, all exporters who have an export turnover of Rs.5 crore of goods exported physically or of services in the current or preceding financial year and having good track record of three years of exports are also eligible to claim exemption from execution of bank guarantee . However, such exporters also need to obtain certificate from CLE.
Status holders are exempted from production of Bank guarantee as well.
In view of the above, the amended circular is attached herewith for information of members. Member exporters are requested to avail the above facility and apply for CLE certificate, towards availing exemption from execution of bank guarantee under AA, DFIA and EPCG schemes.
Thanks and regards
R. Selvam IAS
Executive Director
COUNCIL FOR LEATHER EXPORTS