India Eases Customs Clearance Norms Amid Coronavirus Lockdown
Importers and exporters will have to give an undertaking to customs field formations instead of a bond.
India has relaxed the requirement of submitting a bond by importers and exporters for customs clearance of goods amid a nationwide lockdown to contain the new coronavirus pandemic.
The relief is being given to expedite customs clearance of goods and, at the same time, “maintain a balance between customs control and facilitation of legitimate trade”, according to a government notification.
Importers and exporters have to furnish several bonds declaring the value of goods and the duty that needs to be paid on them. Also, bonds have to be issued for goods kept at customs warehouse.
The Central Board of Indirect Taxes and Customs has received representations that importers and exporters are facing difficulty in obtaining notarised stamp papers for furnishing bonds required by customs during assessment and clearance of goods, the notification said.
This relaxation will be provided till April 30 and importers and exporters will have to give an undertaking to customs field formations instead of a bond, it said, adding that the undertaking will have the same contents of the bond, and will have to be on the company’s letterhead. For some new importers who have to pay security instead of furnishing a bond, they will continue to do so, it said.
According to the notification, this benefit has been given to all state and centre public sector entities, manufacturers, importers availing warehouse facility, and authorised economic operators. The relief will also be considered for other importers and exporters on a case-to-case basis by jurisdictional commissioner, keeping under consideration the objective of safeguarding government revenue and ensuring statutory compliance.
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The move will provide a much-needed respite to exporters and importers to continue their trade by furnishing an undertaking instead of a bond, said Rajat Mohan, a partner at AMRG & Associates.
Those availing this benefit will have to replace these undertakings with proper bonds by May 7, 2020, the notification said.