Advance authorization bank guarantee

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.