DGFT Policy Circular

Government of India http://dgftcom.nic.in/exim/2000/cir/cir09/cir3909.htm[2/15/2017 2:27:12 PM] Government of India Ministry of Commerce & Industry Directorate General of Foreign Trade Udyog Bhavan, New Delhi.   Policy Circular No. 39/2009-2014                                       Dated 15th July 2010   To,   All Regional Authorities; Trade & Industry  

Subject: Executiion of LUT/BG against Import

Authorisation issued by import of Restricted Items on Re-export basis.   This refers to the Import Authorisation which are approved for import of restricted items on re- export basis by the EFC.  To ensure that goods are re-exported by the importers as declared by them at the time of application for Import Authorisations, it has been decided that Regional Authority (RA) concerned will take LUT/BG from the importers at the time of issuance of such authorization as per the following details:-   1.                 The status holders and manufacturers with a turnover of 5 Cr and above, shall execute only a LUT for the full import value.   2.                 Other importers, not covered by Sl.No. 1 above, shall excute LUT for the full import value along with a bank guarantee (BG) for a value of Rs. 1 lakh (one lakh Rupees).   3.                 LUT / BG should have a minimum validity for a time period covering the re-export time plus six months.   4.                 LUT/BG should be redeemded by RA as soon as the documentary evidence for re-export of goods is furnished by the importer.   5.                 This issues with the approval of Competent Authority.   (SHUBHRA) Joint Director General of Foreign Trade Tel. 011-23063249   (Issued from F.No.01/53/8/484/AM010/N-23/Import Cell)