Central Board of Excise and Customs (“CBEC”) vide Circular No. 48/2017-Customs dated December 8, 2017 (“Circular No. 48”) has simplified the business procedures and reduced the burden of compliance cost for taking security/ surety along with the Bond for the purpose of availing the benefits of exemption notifications issued under Section 25(1) of The Customs Act, 1962.
CBEC, vide Circular No. 48 has prescribed the amount of Bank Guarantee/ cash security/ surety that shall be taken for availing the benefit under the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. The Quantum of Bank Guarantee/cash security and requirement of Surety are as under:
|Category of Importer||Quantum of Bank Guarantee/cash security and requirement of Surety|
|a) All importer (s) who are either a department of Central Government or a State Government or a Union Territory or a Public Sector Undertaking or an autonomous institute under the said governments.||Bank Guarantee/Cash Security-Nil
|b) All importers who are Authorized Economic Operators.|
|c) All importers who are manufacturers or service providers registered under GST and have been filing prescribed GST returns without fail and whose annual turnover in the preceding year is above ₹ 1 crore.||Importers shall give surety for the amount of duty foregone. However, where the importer is not able to provide the surety, a Bank Guarantee/ Cash Security equivalent to not more than 5% of duty foregone shall be furnished.|
|d) Importers not covered under (a), (b) & (c) above.||Bank Guarantee/Cash Security-Not more than 25% of the duty foregone amount.|
Earlier as per Rule 5(2) of Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017, importers were required to submit a continuity bond with such surety or security as deemed appropriate by the Deputy Commissioner of Customs or Assistant Commissioner of Customs having jurisdiction over the premises where the imported goods shall be put to use for manufacture of goods or for rendering output services.