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Advance Authorisation / license registration BG and Bond amount calculation

2778 views 2 replies

Harshad Banker

Business

40 Points Posted on 16 February 2020

We are first time manufacturer exporter and have obtained an import license / Advance Authorisation for duty free imports of inputs for the item to export. We want to register the license at port and there is a lot of confusion about Bank Guarantee amount calculation and Bond amount also. Will the BG amount be 15% of Duty or 15% of CIF value of goods imported? Like wise will the bond amount be 110% of duty saved or CIF value of goods imported. Due to divided opinion by CHAs whom we have approached for license registration we are completely confused on this. Kindly advise, need your urgent help.

Replies (2)

CS M Pota

Company Secreatary

3186 Points Posted on 17 February 2020

Bond is required to be executed for duty saved amount + 3 years simple interest @ 18%pa.You need to execute Bank gurantee 15% or whatever percent as may be required by Customs and as per your status will be of Bond amount like 15% of the bond amount.

If you have any problem you may contact me.

VIJAYALAKSHMI K

PRODUCT FUNCTIONAL HEAD

101 Points Posted on 20 February 2020

Bond Amount - 100% of duty saved amount. However, 10% is further added to accommodate any fluctuations.

BG Amount - ___ % as applicable for you on Duty Saved Amount. If you have any special status you shall avail exemption on BG. Refer board circulars in this regard or check with your CHA.