We are a merchant exporter applying for advance authorization (with a supporting manufacturer).
Is it possible for us to avoid Bank Guarantee , by giving a letter of undertaking from the manufacturer.
Thanks in advance.
Menu
Advance authorization bank guarantee
Replies (1)
SORRY FOR POSTING THE REPLY LATE DUE TO MY CS EXE. EXAMINATION.
PLEASE NOTED THAT:
Whenever an exporter undertakes the imports before exports, he shall have to provide to the customs authority a bank guarantee to the tune of the duty that would be saved on such imports.
However the exporter is allowed to release the goods on LUT (Legal Undertaking) in lieu of a BG in specified cases.
CLARIFICATION:
All the exporters who have an export turnover of at least Rupees 5 Crore in the current or preceding licencing year and have a good track record of three years of exports will be exempted from furnishing a BG for any of the schemes under this Policy and may furnish a LUT in lieu of BG.
Recent Threads
- GSTr 9 24-25
- Change HSN
- TDS ISSUE ( DIFFERENT SECTION )
- Company strike off with loan waiver accounting iss
- Board resolution for authorization for GST
- Invoice related audit
- Gst input credit related
- Updated ITR as missed the dead line
- Change if place of business l
- Purchase from unregistered dealer garments busines
Related Threads
CAclubindia
