Import norms become easier

 The easing of norms comes in the wake of representations made by trade bodies to the effect that furnishing surety against bond becomes difficult on account of the large volume of imports undertaken by status holders and manufacturer exporters under the advance license and EPCG schemes.

 They also pointed out that furnishing surety against bond also increased the transaction costs.

 The entities that will benefit from the revised norms for the execution of bond and bank guarantee are super star trading houses, star trading houses, trading houses, export houses, public sector undertakings, and service providers, who are recognised as status holders.

 Manufacturer exporters registered with the Central Excise, who have been exporting during the previous two financial years and have a minimum export of Rs 1 crore or more during the financial year, will be the gainers.

 Again, those manufacturer exporters, who have paid a central excise duty of Rs 1 crore or more during the preceding financial year, also stand to gain.

 The revised norms for execution of bond and bank guarantee under the advance license and EPCG schemes on the Customs side is similar to the one pertaining to the provision of furnishing of bond/ bank guarantee on the Central Excise side.

 Manufacturer exporters, who want to import goods but do not come under the above classification, however, are required to furnish a 25 per cent bank guarantee and others have to provide a 100 per cent bank guarantee for importing goods.