The Central Board of Indirect Taxes and Customs (CBIC) has notified the Circular regarding the alignment of Authorized Economic Operator (AEO) Circular No. 33/2016 dated July 22, 2016, and 54/2020 dated December 15, 2020, with the Customs Administration of Rules of Origin Under Trade Agreements Rules, 2020 (CAROTAR 2020) implemented vide dated September 21, 2020.
“Reference is drawn to Circular No. 33/2016–Customs dated July 22, 2016, as amended, including by Circular No. 54/2020- Customs dated December 15, 2020, vide which relaxation in the furnishing of Bank Guarantee was extended to various categories of AEO/AEO (MSME), but would not be applicable in cases where the Competent Authority orders furnishing of Bank Guarantee for provisional release of goods under section 18 of Customs Act, 1962,” the CBIC said.
It is clarified that with the insertion of Section 28 DA of Customs Act, 1962 relating to the procedure regarding the claim of a preferential rate of duty, and the issuance of CAROTAR, 2020 (Customs Administration of Rules of Origin Under Trade Agreements Rules, 2020) vide Notification No. 81/2020-Customs dated 21.08.2020 (effective 21.09.2020), these provisions prevail over dispensation extended vide para 1.5.1. (v), 1.5.2.(ix), 1.5.3.(iv) of Circular No. 33/2016- Customs dated 22.07.2016 and para 3(vii) of Circular No. 54/2020- Customs dated 15.12.2020, and the latter stand suitably aligned to the former.
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