Ekal Anubandh: CBIC introduces Single Unified Multi-Purpose Electronic Bond For Importers, Exporters and CBs [Read Circular]

The Central Board of Indirect Taxes and Customs ( CBIC ) has introduced project, named “Ekal Anubandh,” supports the use of a single All-India Multi-purpose Electronic Bond ( SEB ) for the importers, exporters and the customs brokers, which will replace the need for multiple transaction-specific bonds currently required across various customs locations.

The new system will allow traders to submit a single electronic bond for various obligations, avoiding the need to submit separate bonds for each transaction at different ports.

The current system, which mandates the submission of multiple bonds for different purposes—such as provisional assessments, export promotion schemes, warehousing, and more—adds unnecessary costs and administrative burdens on both the trade and customs departments.

The new SEB addresses these challenges by providing an end-to-end digital solution that is automated and more efficient.

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Single All-India Multipurpose electronic Bond (SEB):

The key features are:

• Importer/Exporter can choose the obligations he intends to undertake in the common bond format and submit at any port of importer's choice electronically at ICEGATE.
• Option to include additional obligations or additional amount at the later stage is available at ICEGATE
• Electronic Payment of stamp duty and electronic execution of Bond through integration with National E-Governance Services Limited (NeSL) by affixing electronic signature without any requirement for notary.
• Online linking End-to-End issued Electronic Bank Guarantee
• Verification of Bank Guarantee (BG) issued by issuing Bank

Consistent with the 'Digital Document Execution (DDE)' initiative for paperless execution and storage of financial contracts by the Department of Financial Services (DFS) through M/s National E-Governance Services Limited (NeSL), the digital execution of customs bonds is now being facilitated. This includes the electronic submission of bonds, with digital payment of stamp duty, as detailed in Annexure-A. Importers and exporters executing the bond are required to ensure the applicable stamp duty is paid.

Further, as per Circular 11A/2011-Customs dated 25.02.2011, which pertains to National Bonds for Export Promotion Schemes (EP), the Law Ministry’s opinion has reaffirmed that since the bond is executed in favor of the President of India, it is enforceable by any authorized Commissioner of Customs. Additionally, with the capability to verify executants and timestamp electronic signatures, the requirement for notaries has been waived during the execution of the Single Electronic Bond (SEB). The SEB format is available in Annexure-C.

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Submission of Bank Guarantee:

The process for submitting Bank Guarantees (BG) alongside the execution of bonds has been streamlined to enhance efficiency. To ensure consistency, the required BG amounts for various scenarios previously specified in different Board circulars are now consolidated and available in Annexure-F. Importers and exporters can select the appropriate BG amount for purposes such as provisional assessments or export promotion schemes (EP).

Additionally, an option is available for those requiring a different BG quantum than those listed in Annexure-F. Detailed guidelines for linking BG with the bond are provided in Annexure-B.

The "Ekal Anubandh" project intends to reduce paperwork, save costs, and make processes easier by avoiding the need for physical signatures. This helps speed up approvals, reduces delays, and encourages importers, exporters, and customs brokers to use the new system for a single electronic bond and bank guarantee when needed.

For more information on the new e-Bond and e-Bank Guarantee module, stakeholders can refer to the advisories available on the ICEGATE website. The project will be rolled out in phases, with feedback from users being incorporated during its implementation.

To Read the full text of the Circular CLICK HERE

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