Execution of bond under Export warehousing :

Every exporter registered in the aforesaid manner, shall execute before the Assistant Commissioner of Central Excise or the Deputy Commissioner of Central Excise having jurisdiction over the warehouse a general bond under Rule 19 of the said Rules for export of goods from the warehouse in the B-3 Bond (General Security) Format prescribed. The exporter availing this scheme shall be required to furnish security equal to 25% of the bond amount. In case any bank guarantees are furnished, it shall be the sole responsibility of the exporter to renew its validity.

Where the exporter is a manufacturer and a Status Holder with a clean track record, the requirement to furnish security equal to 25% of the bond amount shall be replaced by the requirement of furnishing an LUT initially for a period upto six months which may be extended by a further period not exceeding six months. Further extensions in the warehousing period in terms of Circular No. 579/16/2001 CX dated 26.06.2001 shall be allowed to such exporter only on furnishing security of 25% of the bond amount.

A ‘Running Bond Account’ will be opened in the format specified. This register shall be maintained by the exporter in the warehouse and shall be made available to the officer -incharge or officers of Internal Audit for scrutiny and checking.