IGCRD Rules

Dear Experts,

We are engaged in manufacturing of Kraft paper, and we used to import waste paper under IGCRD rules by executing Bond and bank Guarantee @ 5% on duty Forgone.

Also we are doing top-up to the bond once the bond value is exhausted with the new bank guarantee.  

Now the issue is, Our funds are keep on accumulating in the bank in the name of bank guarantee. 

For EOU units, there is a provision of Re-credit options, but not for DTA.

Please let us know, is there any provision to close this bond and bank guarantee. 

Or can we go with new bond and bank guarantee instead of Top ups ? please guide. 

Thanks in advance

Regards,

Manjunath S

 

Replies (2)
Quick Summary
A Kraft paper manufacturer is seeking advice on managing bank guarantees under IGCRD rules, as funds are accumulating due to bond requirements. They are asking if there's a way to close existing bonds and bank guarantees or if they can opt for new ones instead of continuous top-ups. A response suggests referring to Customs Circular No. 18/2022, which may offer relief and eliminate the need for bank guarantee top-ups.

Attn: Mr.Manjunath

Please refer Customs Circular No.18/2022-Customs dated 10th Sept.2022 read Point No.4.6, which gives relief for the importers under IGCR.. Hence, you need not top-up bank guarantee. Kindly go thro the link

https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2022/Circular-No-18-2022.pdf

For any guidance, please write to me tendollarshipping @ gmail.com, R.Govindarajan, Chennai

Dear Sir,

Thanks for your reply.

But hope IGCR-3A form is yet to be introduced.

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