CBIC revises the norms for execution of Bank Guarantee under Advance Authorisation, DFIA and EPCG Schemes

Sep 20, 2019 | by Avantis RegTech Legal Research Team


The Central Board of Indirect Taxes and Customs (CBIC) on September 13, 2019, has issued a Circular to revise the norms for execution of Bank Guarantee under Advance Authorisation (AA), Duty Free Import Authorisation (DFIA) and Export promotion Capital Goods (EPCG) Schemes.

CBIC has reviewed the norms for execution of Bank Guarantee under AA, DFIA and EPCG schemes and give clarifications on the manufacturer exporters or service providers registered with the GST authorities who have been exporting during the previous two financial years and have minimum export of Rs. 1 crore or more and who have paid GST of Rs. 1 crore or more to claim exemption from furnishing Bank Guarantee during the preceding financial year. Thus, in order to avoid difficulties in the GST regime, it has been decided to discontinue the requirement for procurement of such certificate from Central Excise authorities.

 In cases where the AA/DFIA/EPCG authorisation holder is a registered member of an Export Promotion Council, he shall produce a certificate of export performance or payment of duty or GST for the purpose of availing Bank Guarantee exemption from the concerned Export Promotion Council. And the cases 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.

[Circular No. 31/2019-Customs]


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