CBEC eases norms for bank guarantee & security by importers availing concessional duty

CBEC eases the norms for furnishing security / surety along with Bank Guarantee / bond by importers seeking to avail concessional duty benefit in terms of Customs (Import of Goods at Concessional Rate of Duty) Rules 2017; Accordingly, states that all importers who are manufacturers / service providers registered under GST and have been filing prescribed GST returns without fail and whose annual turnover in preceding year is above Rs. 1 Cr, shall give surety for the amount of duty foregone and where they are unable to do so, a Bank Guarantee (with self-renewal clause) / Cash security equivalent to not more than 5% of duty foregone shall be furnished; Dept. of Central Govt. / State Govt. / UT / PSU / autonomous institute under the said Govts. and all importers who are Authorised Economic Operators are exempt from such requirement; All other importers must furnish Bank Guarantee / Cash security for an amount not more than 25% of duty foregone; However, jurisdictional Commissioner may order for higher quantum subject to limit of 100% of duty foregone amount, and where importer so requests, the bank guarantee / cash security may be taken consignment-wise to obviate financial burden : CBEC Circular