Procedure for discharge of bond or the duty liability :

Essential ingredients for discharge of bond have already been mentioned under each category of exports.

The general procedure would be – the exporter shall submit the quadruplicate copy duly endorsed by the officer of customs in-charge of land customs station to the Central Excise officer who has accepted the bond along with bank, certificate evidencing receipt of payment in freely convertible currency (in Indian Rupee in particular category), within six months from the date of removal of the goods. It may be noticed that earlier, the above mentioned period has been extended from ‘three‘ months to ‘six‘ months, as compared to erstwhile notification.

The Central Excise officer will tally the particulars with quintupl icate copy of the invoice received from the Central Excise officer who has allowed clearance from the factory or warehouse or any other approved premises and make suitable entries in Bond Account of the exporter, giving provisional credit or discharging the bond provisionally.

On receipt of the duplicate copy of invoice, duly endorsed by customs officer of Bhutan from the customs officer in charge of land customs station, certifying export of the goods and after tallying the particulars with those in quadruplicate copy of the invoice make suitable entries in Bond Account and the obligation under the said bond will then be discharged.

In case of failure to export within six months from the date of removal from the factory or warehouse or any other approved premises, or shortages noticed, the exporter shall discharge the duty liability on the goods not so exported or shortage noticed along with twenty four per cent interest thereon from the date of removal for export without payment of duty till the date of payment of duty in terms of the bond.