CBIC notifies Waiver of Bank Guarantee for Transhipment of Import & Export Cargo via Sri Lanka and Bangladesh [Read Circular]

CBIC notifies Waiver of Bank Guarantee for Transhipment of Import & Export Cargo via Sri Lanka and Bangladesh [Read Circular]

CBIC - waiver of Bank Guarantee - Transhipment of Import & Export Cargo - Taxscan

The Central Board of Indirect Taxes and Customs (CBIC) notified the  waiver of Bank Guarantee for Transhipment of Import & Export Cargo via Sri Lanka and Bangladesh.

The CBIC has received the representations that Customs authorities at some ports are insisting that ship owners provide Bank Guarantee for carriage of EXIM containers for transhipment from East Coast to West Coast ports, via Colombo.

It is seen that Circular No.45/2005, dated November 24, 2005 waives the requirement of execution of bank guarantee for the purpose of transhipment in respect of Carriers of containerized cargo, who are handling more than 1000 TEUs as import containers in a financial year.

This waiver would apply not only to shipping lines but also to ICDs/CFSs/other carriers and for carriage in all modes of transhipment, irrespective of their movement by road, coastal shipping or rail. Further, jurisdictional Commissioners of Customs in deserving cases have been empowered to exempt the requirement of furnishing Bank Guarantee in respect of carriers having annual transhipment volume below the limit of 1000 TEUs, but having good track record.

Also, vide Circular No.8/2019-Cus, dated February 26, 2019 movement of coastal goods through foreign territory of Sri Lanka and Bangladesh has been provided for, with a view to promote the movement of coastal goods through foreign territory.

The Board has decided to extend the exemption from requirement of furnishing of Bank Guarantee by the carriers for carriage of EXIM cargo for transhipment through foreign territories of Sri Lanka and Bangladesh. This relaxation would apply,if the carrier fulfils the requirement of waiver of Bank Guarantee in a like manner, as provided for by Circular No. 45/2005-Customs, dated November 24, 2005.

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