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There are six types of bonds for due despatch of goods for export:
B1 (Surety)
B1 (Security)
B 1 (General Surety)
B 1 (General Security)
B 1 6(General Surety)
B16 (General Security)
Exporters have option to execute a general bond (B1 General) or bond (B1) to cover a particular consignment. For particular B-1 bond, amount of bond should be equal to at least the duty on the goods to be exported. For general B-1 bond, the amount of bond would be equal to the full duty on the exporter's estimate of the maximum quantity of the excisable goods likely to be in transit during the period between the clearance from the factory and acceptance of proof of export.
Rule 13 provides for execution of bond for a particular consignment while Rule 14 provides for export under a general bond - the consignments being despatched from time to time.
Bond in form B16 is a general bond (with surety/security) covering Rule 9B, 13, 14 and 192 for obtaining provisional assessment of goods under Rule 9B, for removal from time to time for export to a foreign country without payment of duty and for due accounting and disposal of excisable goods obtained without payment of the whole or part of duty for use in special industrial purpose under Chapter X of Central Excise Rules, 1944. The manufacturer exporter who has executed B-16 bond is not required to execute export bond to cover duty on goods exported without payment of duty.
Amount of Security or Bank Guarantee
Manufacturer exporters may execute B-1/B-16 bond with 10% security/bank guarantee. Merchant exporters have to execute B-1 bond with 25% security/bank guarantee.
Earlier the following categories of exporters were not required to furnish any security or bank guarantee and they were required to give only the bond with surety.
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Superstar trading houses
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Star trading houses.
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Trading houses.
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Export houses.
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Registered exporters (registered with relevant Export Promotion Council).
Vide Board's F.No.209/54/96-X.6 dated 31.12.1996 (Circular No. 284/118/96CX) it has been decided that bond may be taken without security/surety in case of the following categories of exporters:
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Super Star Trading Houses
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Star Trading Houses.
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Export Houses.
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Registered exporters (Registered with Export Promotion Council).
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Manufacturers registered with Central Excise Department.
Subject to the condition that:
The exporters have not come to the adverse notice of the Department in the last three years.
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All the formalities required under Central Excise Acts and Rules related to exports are regularly complied with by the exporters.
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A copy of the registration-cum-membership certificate (RCMC), duly attested by the exporter is submitted.
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This facility can be withdrawn without prior notice to any exporter if he comes to the adverse notice of the Department
The criterion for recognition as Export House, Star Trading House or Super Star Trading House is either on the basis of FOB value or Net Foreign Exchange (NFE) earned on export of goods and services, including software exports (realised in freely convertible currency) during the last three licensing years or the preceding licensing year, whichever is opted by the exporter. Deemed Exports, However, shall not qualify for the purposes of recognition.
"Deemed Exports" means those transactions in which the goods supplied do not leave the country and the payment for the floods is received by the supplier in India (example supply of goods to units located in EPZ or to Export oriented Units etc). |
