CBEC to Ease Norms for taking Security/Surety along with the Bond for Import of Goods on Concessional Rate [Read Circular]

In a recent missive, the Central Board of Excise and Customs (CBEC) has simplified the rules for taking Security/ Surety along with the bond for import of goods on concessional rate.

The Board has received various references stating that the provision of submission of surety or security in the rules is creating hurdles in the domestic industry especially to the electronic hardware manufacture as the same resulted in increasing transaction cost hampering their efforts to optimize the manufacturing capacity.

The option to furnish the surety along with the Bond is given, in order to facilitate manufactures and service providers keeping in view the different business environments in which the entrepreneurs function and also to protect the interest of revenue.

With a view to simplify the business procedure and to reduce the burden of compliance cost, the Board has now, decided to ease the norms for taking security/ surety along with the Bond.

The Board has fixed the upper limit of Bank Guarantee/ Cash Security to the extent of 5% and 25% respectively unless the Deputy Commissioner or the Assistant Commissioner has reasons to demand a higher quantum of Bank guarantee/ cash security, in which case the matter shall be referred to the jurisdictional Commissioner who may order for higher quantum of Bank Guarantee or cash security, subject to limit of 100% of the total duty foregone, after recording the reasons thereof in writing.

“In order to avail above exemption/ relaxation from furnishing Bank Guarantee/Cash security or surety, prosecution should not have been initiated or launched against the importer under, any Act administered by the Central Board of Excise & Customs or State Goods & Service Tax Act or Integrated Goods & Service Tax Act or Union Territory Goods & Service lax Act during the previous three financial years,” the Board said.