4.47

Redemption / No Bond Certificate

(a) Bond Waiver: In case Authorisation holder exports first (before effecting imports) by using imported inputs / indigenously procured raw material, in that case the Authorisation holder can seek waiver of Bond condition by submitting evidence of export made and payment realised to that extent. If exports made are less than the export obligation stipulated in the Authorisation, request for waiver of bond condition, on pro-rata basis, can also be made.

(i) For such a request, an applicant has to file online application attaching Shipping Bills and e-BRC. Scanned copy of other documents as prescribed in the ANF 4F shall also be uploaded. In case of deemed exports or export from non-EDI ports, the documents evidencing proof of export/supply shall be submitted at the counter of Regional Authority concerned giving reference of online application in physical form except e- BRC.

(ii) While allowing waiver of Bond for exports made first (before effecting imports) on pro-rata basis, Regional Authority may revalidate the Authorization in continuation for further six months for replenishment of inputs used in manufacture of export item's from the date of endorsement provided applicant has made a specific request in ANF 4D and paid requisite fee for revalidation. It will be further subject to condition that the applicant had not obtained revalidation earlier in terms of Para 4.41(a) of HBP 2015-20.

(Above (ii) has been revised vide PUBLIC NOTICE NO.17/2016, DT. 08/06/2016 )

[OLD- (ii) While allowing waiver of Bond, Regional Authority may revalidate the Authorisation in continuation for further six month from the date of endorsement provided applicant has made a specific request and paid requisite fee for revalidation. ]

(iii) In case EO has been fulfilled, Regional Authority shall issue Bond Waiver Certificate (BWC) and forward a copy to the Customs authority at the port of registration of Authorisation enclosing details of shipping bill number(s), date(s), FOB value in Indian Rupees as per shipping bill(s) and description of export products in respect of shipment taken into account for allowing waiver of Bond condition. Such bond waiver shall not preclude the Customs Authority from taking bond in terms of the Customs notification.

(iv)Copy of the Bond Waiver Certificate will also be endorsed by the Regional Authority to the Customs at the Port of Registration by post till system of transmitting these through EDI mode under message exchange is introduced between DGFT and CBEC.

(b) Export Obligation Discharge Certificate (EODC):

(i) In case Authorisation holder imports / procures inputs first and exports later, the Authorisation holder shall submit online application in ANF-4F as in (a) (i) above. In such cases, if EO has been fulfilled, the Regional Authority may issue EODC / Redemption Certificate to Authorisation holder and forward a copy to the Customs authority at the port of registration of Authorisation indicating the same details of proof of fulfilment of EO as stated in paragraph (a) above evidencing fulfilment of Export Obligation.

(ii) Copy of EODC will also be endorsed by Regional Authority to Customs at the Port of Registration by post till system of transmitting these through EDI under message exchange between DGFT and CBEC is introduced.

Ordinarily, redemption of BG / LUT shall not preclude customs authority from conducting random checks and from taking action against Authorisation holder for any misrepresentation, mis-declaration and default detected subsequently as per the Customs Act.

(d) Authenticity of such Certificate shall be verified by referring to DGFT website (dgft.gov.in). DGFT will publish details of such certificate on its official web every month.

(e) Regional Authority shall take action against Authorisation holder in case of non-submission of Appendix 4H & 4-I duly filled in, as stipulated in paragraph 4.51 below or for any misrepresentation, mis-declaration and default detected subsequently in details declared and furnished in Appendix 4H & 4-I. An endorsement to this effect shall be made by Regional Authority in the redemption certificate.