Guidelines to execute Bank Guarantee, Legal under Taking for EPCG and Advance Authorization

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Execution of BG/Legal undertaking for Advance Authorisation/ EPCG Authorisation

 

Guidelines to execute Bank Guarantee, Legal under Taking for EPCG and Advance AuthorizationHere we discuss about guidelines to execute LUT and BG for EPCG and Advance authorization.

As per foreign trade policy of India, before clearance of goods through Customs, Authorisation holder shall execute a BG/LUT with Customs Authorities. In such cases, RA shall endorse the following condition on the licence/ Authorisation: "BG / LUT as applicable, to be executed with concerned Customs Authorities.

In case of indigenous sourcing, Authorisation holder shall furnish Bank Guarantee / Legal Undertaking to RA (Regional Authority) as per Customs Circular No.58/2004 dated 31.10.04, as amended from time to time. In case, the firm has already executed BG/LUT for the full value of the license/ certificate/ authorization/ permission (covering the items indigenously procured) to the Customs and furnishes proof of the same to Regional Authority (RA), no BG/LUT shall be required to be executed with the RA, Regional Athority. The RA concerned shall endorse on the authorisation that the Customs Authority shall release/redeem BG/LUT only after receipt of NOC or EODC from the RA concerned. RA shall endorse a copy of the same along with a forwarding letter to the Customs Authority at the Port of registration for their information and record.

The above information states on execution of Legal Under Taking (LUT) and Bank Guarantee (BG) as per Foreign Trade Policy of India for EPCG and Advance Authorization.

 

The above details explains about guidelines to execute Bank Guarantee (BG) and Legal Under Taking (LUT) with DGFT to avail benefits under EPCG or Advance Authorization. Do you wish to add your views about guidelines to execute Bank Guarantee (BG) and Legal Under Taking (LUT) with DGFT to avail benefits under EPCG or Advance Authorization?

 

 


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prashant: Provide procedure. Applying for lut or BG.

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