CBIC provides relaxation from submitting bonds till April 30, 2020 under various provisions of the Customs Act, 1962

Apr 06, 2020 | by Avantis RegTech Legal Research Team


Finance & Taxation Compliance

The Central Board of Indirect Taxes and Customs (CBIC) on April 03, 2020, approves relaxation of the requirement to submit bonds prescribed various provisions of the Customs Act, 1962, subject to compliance of various conditions. 

In light of the unprecedented situation caused due to COVID-19 pandemic, CBIC has decided to take certain measures for a temporary period with a view to expedite Customs clearance of goods and for maintaining balance between Customs control and facilitation of legitimate trade.

Therefore, till the situation normalizes, the said relaxation will be available up to April 30, 2020. During this period, Customs field formations may accept request for submission of an undertaking from the importer/exporter in lieu of a bond.

This relaxation will apply to the following categories of the importers/exporters:

a. Government/Public Sector Undertakings (Central/State/UT Govts. or Administrations and their undertakings)

b. Manufacturer/Actual User importer

c. Authorised Economic Operators

d. Status holder

e. All importers availing warehouse facility in terms of section 59 of the Customs Act, 1962, which specifies the procedure for obtaining Warehousing Bond.

Each such relaxation, where requested, should comply with the following conditions:

i. The content of the undertaking should, be same as the content of the prescribed bond.

ii. The Import Export Code (IEC) holder will signed the undertaking submit by the registered email ID of the IEC holder or their authorised Customs Broker.

iii. The IEC holder should commit under undertaking that he will submit proper bond in prescribed format on notarised stamp paper etc. on or before May 07, 2020.

iv. The undertaking will not be treated as a substitute for security, wherever mandated.

v. The security, where required, shall be furnished in the nature and manner as deemed fit by the proper officer.

vi. In case of warehoused goods, any subsequent movement of goods to another warehouse under section 67 of the Customs Act, 1962, which specifies the procedure for removing the goods from one warehouse to another, shall be allowed only to manufacturer/actual user importer or Authorized Economic Operator (AEO) or Status holders.

Importers /Exporters availing this facility shall ensure that the undertaking furnished in lieu of bond is duly replaced with a proper bond before the stipulated period i.e. May 07, 2020.

[Circular No. 17/2020-Customs]


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