OFFICE OF THE COMMISSIONER OF CUSTOMS CUSTOM HOUSE, KANDLA, KUCHCHH COMMISSIONERATE

 

PUBLIC NOTICE NO. 08/2011 dated  11.03.2011

Subject:- Assessment under Project Import Regulations, 1986- Requirement of cash  security in lieu of bank guarantee – reg.

                
A copy of C.B.E.C. Circular No.12/2011-Customs dated 01.03.2011, issued from F.No. 334/03/2011(TRU) by Sh. Sanjeev Ku. Singh, Under Secretary, Department of Revenue, Ministry of Finance, New Delhi, is enclosed herewith for information, guidance and necessary action.

2.         Any difficulty faced in implementation of the above Instructions may be brought to the notice of the undersigned immediately.

3.         All the Trade Associations/Chamber of Commerce/Members of Regional Advisory Committees and Custom House Agents’ Association are requested to publicize the contents of this Public Notice among their members/constituents, for their information and necessary action.

Encl.: As above.   

(D. S. Negi)
Commissioner

F.NO.: S/20-02/2011-Appg (G)                                               
Date: 11.03.2011                                                                                     
To,

  1. The Chief Commissioner of Customs, Gujarat Zone, Ahmedabad.
  2. All Additional/Joint Commissioners of Customs, C.H.Kandla.
  3. All the Deputy/Assistant Commissioner of Customs, C.H.Kandla/ Mundra.
  4. The Assistant Commissioner of Customs, Customs Division, Bhuj.
  5. All Groups/ Sections, Customs, Kandla.
  6. The Gujarat Chamber of Commerce & Industries, Ahmedabad.
  7. The Southern Gujarat Chamber of Commerce & Industries, Surat.
  8. The Gandhidham Chamber of Commerce & Industries, Gandhidham.
  9. The Kandla Custom House Agents’ Association, Gandhidham.
  10. The Mundra Custom House Agents’ Association, Mundra.
  11. The Kandla Port Steamship Agents’ Association, Gandhidham.
  12. The Mundra Port Steamship Agents’ Association, Mundra.
  13. The Container Freight Station Association of Mundra, Bharat CFS Zone- 1, Mundra.
  14. The Chairman, Kandla Port Trust, Gandhidham.
  15. Notice Board / Guard File.

 

 

Circular No.- 12/2011-Customs
Dated: 01 /03/2011
F.No. 334/03/2011 (TRU)
Government of India
Ministry of Finance
Department of Revenue, New Delhi

Subject: Assessment under Project Import Regulations, 1986 - Requirement of cash security in lieu of bank guarantee.Reg
I am directed to refer Board's Circular No. 89 dated 9-8-1995 issued from F.No. 528/ 73/ 92- (TU), in partial modification of letter F.No.521/192/ 90-Cus.(TU) dated 9.1.1992, advising Customs Houses / Commissionerates to take cash security equivalent to 2% of the CIF value of goods sought to be imported, subject to a maximum of Rs. 50 lakhs, at the time of registration of Project Contract under Project Import Regulations, 1986. It was further advised that in cases, where cash security of 2% of the value of the contract exceeds Rs. 50 lakhs, importers may be given an option to furnish cash security of Rs. 50 lakhs and balance amount by a bank guarantee, backed by an undertaking to renew it till the finalisation of the contract. Government Departments and Public Sector Undertakings, however, continued to be exempted from furnishing the above cash security in terms of the practice in vogue, Vide Board's letter F.No. 521/192/90-Cus.(TU) dated 14.3.1993.

2.       The issue regarding furnishing of a cash security equal to 2% of the CIF value of the goods sought to be imported under Project Import has further been examined by the Board. In view of the reduction in import duty and the inordinate delay associated with finalisation of the said project imports, it has been decided to do away with the practice of taking cash security. Henceforth, subject to a maximum of Rs. 1 Crore, only a bank guarantee, equivalent to 2% of the CIF value of goods sought to be imported, would be taken at the time of registration of the Project Contract under Project Import Regulations, 1986. The said bank guarantee shall be backed by an undertaking that it would be renewed from time to time. However, the said bank guarantee need not be renewed on completion of a period of six months from the date of submission of necessary documents, from the jurisdictional Central Excise authority or any other specified authority, as proof of utilisation / installation of goods for the finalisation of the contract. The project import of Government Departments and Public Sector Undertakings would continue to be covered by Board's letter F.No. 521/92/90-Cus.(TU) dated 14.3.1993.