Submission of Bank Guarantee for the purpose of extension of Warehousing Bonds as per the conditions of Board’s Circular No 21/2016.

Circular No. ES/327/2017-18 March 15, 2018

To: Members of the Council

Sub:Submission of Bank Guarantee for the purpose of extension of Warehousing Bonds as per the conditions of Board’s Circular No 21/2016.

Dear Member,

We would like to inform you that the Office of the Commissioner of Customs – NS III, Jawaharlal Nehru Custom House (JNCH) vide Public Notice No. 37/2018 dated March 9, 2018 has invited attention to the Board’s Circular No.21/2016-Customs dated May 31, 2016 where the Board had prescribed conditions for furnishing of security by importers.

The said Board’s Circular also specifies that ‘security’ is to be furnished for seeking extension in warehousing period for storage of sensitive & non-sensitive goods by way of furnishing Bank Guarantee interalia subject to certain conditions mentioned at Para 4 of the said Circular.

JNCH has noted the following –

In some cases, the Bank Guarantees which are submitted for extension do not have proper ‘Self Renewal’ Clause. These Bank Guarantees have ‘Written Claim’ Clause stipulating that the bank’s liability is conditional upon the receipt of a valid and duly executed written claim.

Bank Guarantees containing such clause/condition is contradictory to the ‘Self Renewal’ Clause. This results in delay in processing of files pertaining to extension of the warehousing bonds.

Therefore, it is advised that a proper care must be taken before submitting the Bank Guarantees with a proper unconditional ‘Self Renewal’ Clause.

In case you need any further clarification, the specific issue may be brought to the notice of Deputy/Assistant Commissioner in charge of Bond Section, NS-III (email address:bondsectionjnch2014@gmail.com) or Deputy/Assistant Commissioner in charge of Appraising Main (Import), NS-III (email address: appraisingmain.jnch2014@gov.in).

Thanking you,

Yours faithfully,

S.BALARAJU
EXECUTIVE DIRECTOR