The information provided here is part of Import Export Training course online
Execution of BG/Legal undertaking for Advance Authorisation/ EPCG Authorisation
Here 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.
The above information is a part of Online Training Course on howtoexportimport
Share below your comments about LUT and BG to be executed for EPCG or Advance Authorization.
Posts about Export Import Online Training;
How to export your product?
How to import your product?
Click here to know HS code of your product
What is the ITC code (Indian Tariff Code) of your product?
12 Major risks and solutions in Imports and Exports
Different types of export containers
Types of export containers
Measurement of export containers
Foreign Trade Policy of India 2015-2020
MEIS, Merchandise Exports from India Scheme
SEIS, Service Exports from India Scheme
Merge your Commercial Invoice and Packing List for all your future exports
Export procedures and documentation
Multiple Country Textile Declaration
Negotiation procedures and formalities of export bills
Material used for testing is eligible for Modvat
Mode of payments in international trade
What is VACIS exam in US import customs clearance
When can an exporter release bill of lading from shipping company?
Procedures for Re-imports
Procedures to claim brand rate of draw back
Introduction to this web site.
Is Airway bill a documents of title?
Sea carriers
What is the difference between BAF and CAF
Stuffing and De stuffing – 2 regular terms used in shipping
Surrender of Bill of Lading – Some facts
Transferability of Bill of Lading
Transhipment - A redefinition
Travelers to India under import duty exemption, Frequently Asked Questions Part 2
Triangular export
Types of Insurance Documents.
What is Express Release Bill of Lading
What is FIRC in export import business
What is first check assessment procedures in import customs clearance
What is FOB price in Exports and Imports and how it works
What is Fumigation in Export and Import
What is House BL
What is ICD?
What is IHC – Inland Haulage Charges
What is intensive exam CET exam in US import clearance
What is Inter Unit Transfer (IUT) in STP
Is Customs House Agents (CHA ) required to be appointed mandatory?
Is DP terms of payment safe in export business?
Is Letter of Credit LC safe for an Importer?
Is ON BOARD CERTIFICATE required for LC negotiation
What is LC Letter of Credit in export import business
What is legalization of documents by embassy?
What is LET EXPORT order in export trade?
What is Line number in IGM
Import General Manifest (IGM)
Importance of Bill of Lading
Introduction to this web site.
Is Airway bill a documents of title?
Is Customs House Agents (CHA ) required to be appointed mandatory?
Transferability of Bill of Lading
Transhipment - A redefinition
Travelers to India under import duty exemption, Frequently Asked Questions Part 2
Triangular export
Triangular shipment
Types of Insurance Documents.