Customs Department extending the exemption for execution of Bank Guarantee (BG) based upon the export turnover, quantum of duty, tax paid, etc. vide earlier circular No. 58/2004-Cus dated 21.10.2004 as amended vide circular Nos. 17/2009-Cus dated 25.05.2009, 32/2009-Cus dated 25.11.2009, 06/2011-Cus dated 18.01.2011, 08/2013-Cus dated 04.03.2013 and 15/2004-Cus dated 18.12.2014 in view of the implementation of GST from 01.07.2017 has now issued Circular No. 31/2019-Cus dated 13.09.2019 which devised the norms for BG under Advance Authorisation, DFIA & EPCG scheme.

The manufacturer exporters/service providers are eligible to claim exemption from furnishing Bank Guarantee under following two situations:

1. Manufacturer exporters/Service Providers registered with the GST authorities (Centre/State/Union Territory) who have been exporting during the previous two financial years and have minimum export of Rs. 1 crore or more during the preceding financial year.
2. Manufacturer exporters/Service Providers registered with the GST authorities (Centre/State/Union Territory) who have paid GST of Rs.1 crore or more during the preceding financial year.

Further clarification have been made which are as follows:

• in cases where the AA/DFIA/EPCG authorisation holder is a registered member of an EPC, he shall produce a certificate of export performance or payment of duty/GST for the purpose of availing Bank Guarantee exemption from the concerned EPC on the lines of similar facility available earlier
• where the AA/DFIA/EPCG authorisation holder is not a registered member of an Export Promotion Council, he may produce such certificate duly authenticated by a practicing Chartered Accountant who is registered with the GST Department (Centre/State/Union Territory) for payment of GST
• the requirement of obtaining certificate from jurisdictional superintendent of Central Excise has been discontinued.

Also Read: TRANSFER PRICING IN INDIA

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