Circular No. 31/2019-Customs Dated 13/09/2019
Revised Norms for Execution of Bank Guarantee under Advance Authorisation, DFIA and EPCG Schemes-
Board is in receipt of references
from field formations and inputs from trade and industry seeking clarification
as to what should be the basis for waiver of Bank Guarantee to be executed with
Customs in the Goods and Services Tax (GST) regime under AA, DFIA and EPCG
schemes in respect of manufacturer exporters/service providers.
2. The matter has been examined. GST has come into force from 01.07.2017 whereby
Service Tax as well as major portion of Central Excise have been subsumed in the
GST. Board’s Circular No. 58/2004-Cus dated 21.10.2004 (hereinafter referred to
as 'the said Circular’) 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 15/2014-Cus dated 18.12.2014 inter alia
prescribes the norms for execution of Bond/Bank Guarantee in respect of imports
made under the AA, DFIA and EPCG Schemes. The said Circular and amending
Circular No. 17/2009-Cus dated 25.05.2009 extend exemption from execution of
Bank Guarantee based on export turnover, quantum of duty, tax paid etc.
3. In the wake of GST regime, the
norms for execution of Bank Guarantee under AA, DFIA and EPCG schemes have been
reviewed and the following clarification is given:-
(i) 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 shall also be eligible to claim exemption from
furnishing Bank Guarantee under category (d) of importers specified in Table
given in para 3.1 of the said Circular.
(ii) 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 shall also be eligible to claim
exemption from furnishing Bank Guarantee under category (e) of importers
specified in Table given in para 3.1 of the said Circular.
4. In order to avoid difficulties
in the GST regime regarding furnishing of proof of export performance or payment
of duty required to be certified by the jurisdictional Superintendent of Central
Excise (para 3.2(b) of the said Circular), it has been decided to discontinue
the requirement for procurement of such certificate from Central Excise
authorities. In other words, in cases where the AA/DFIA/EPCG authorization
holder is a registered member of an Export Promotion Council, he shall produce a
certificate of export performance or payment of duty/GST for the purpose of
availing Bank Guarantee exemption from the concerned Export Promotion Council on
the lines of similar facility available earlier. In cases where the AA/DFIA/EPCG
authorization 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. This is also on the lines of similar facility
available earlier. The Chartered Accountant will mention his GSTIN and other
registration details in the certificate on the lines stipulated earlier.
5. The other provisions of the said Circular, as amended from time to time,
remain unchanged. A suitable Trade Notice and Standing Order may be issued for
the guidance of the trade and staff. Difficulties faced, if any, in
implementation of the Circular may be brought to the notice of the Board at an
early date.
6. Receipt of the Circular may kindly be acknowledged.
(Ravi Kant)
OSD (Drawback)
Tel: 011 2336 2843