As per Paragraph 6.12(f) of the Foreign Trade Policy, the Units will not be required to furnish bank guarantee at the time of import or going for job work in DTA, where the unit has (i) a turnover of Rupees 5 crores or above, (ii) the unit is in existence for at least three years and (iii) unit is having an unblemished track record.
The instructions to this effect has also been issued by Department of Revenue Circular No. 54/2004-Cus dated 13/10/2004 which has vide paragraph 19 of this circular implemented this provision of the FTP. A copy of DoR circular has already been circulated to all EPCES Members vide EPCES Circular No. 7 dated 20/10/04. Hence all the EOUs are required to execute B-17 Bond but EOUs which comply with the conditions as given in Paragraph 6.12(f) of FTP read with DoR circular No. 54/2004-Cus are not required to execute bank guarantee alongwith B-17 Bond. Other units are required to submit bank guarantee alongwith B-17 Bond. Units which have already executed Bank Guarantee should approach the concerned central excise authoirites for getting their bank guarantee released, in case the unit meets with the stipulated conditions so that they execute only the B-17 Bond.