NEW DELHI, March 30: The Central Board of Excise and Customs (CBEC) has introduced a major procedural simplification by which only a "single" bond with surety needs to be executed by hundred per cent export-oriented units (EOUs) and units set up in export processing zones (EPZs) to cover liabilities both under customs and excise duties.At present, the units have to execute different bonds for different activities.
The requirement of a single bond will also apply to units set up under the software technology parks (STP) and electronic hardware technology park schemes (EHTP) and will meet their long-standing demand.
As per the new format formulated by CEBC, a single bond will suffice for procurement of goods (for export), goods sent out on job work and goods which are in transit from port of import to the factory of the units.
CBEC has advised the central excise and customs authorities to ensure that in future only one bond is taken by them. Further, the bond amount will be equal to double the amountof duty calculated on goods to be imported/procured duty-free from manufacturing units.
The move follows an in-depth examination of the bond issue by CBEC in consultation with the law ministry after persistent representations from EOUs/EPZs that a single all-purpose bond be allowed to be executed by them with the central excise and customs authorities instead of a number of bonds at present in order to resolve problems faced by them in this regard.
The circular says the bond is to be executed before the assistant commissioner of customs/central excise in whose jurisdiction an EOU/EPZ unit is situated.
The assistant commissioner of customs or central excise before whom the bond is executed will issue a certificate in the prescribed format that the bond has been executed by the unit under his charge. On the strength of this certificate, goods will be allowed clearance under exemption notification from the port of import/airport/inland container depots/another EOU/STP/EHTP/ units in EPZ or bonded warehouseof the units.
The question of bond/bank guarantee had also figured in the eight meeting of the high-powered Export Promotion Board headed by Cabinet secretary T S RSubramanian.
Members of the Board had "unanimously" agreed on the need for "rationalising" the bank guarantee system for established manufacturer-exporters.
The Board felt that these exporters might be a given a choice -- a bank guarantee or a modified legal undertaking.
It was noted that these exporters had been facing difficulties on account of the cumbersome bank guarantee system resulting in high transaction cost and blocking of working capital.
In one of the previous meetings of the Board, it had come to the fore that the bank guarantee charges as well as collateral security needed for bank guarantee were high enough.
This apart, the margin money for bank guarantee was also on the high side, ranging from zero to 100 per cent and that there was need for reducing the liability on this account.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
