Bank Guarantee format for epcg/advance licence etc..


To,

The President of India, through The Dy. Commissioner of Customs, J.C.H., Nhava Sheva

BANK GUARANTEE AGAINST BOND FOR Rs…..LICENCE No.

WHEREAS The President of India, Acting Through Deputy Commissioner of Customs, JCH, Ministry of Finance, Government of India, Nhava Sheva, Maharashtra (herein after referred to as The Government) has agreed to grant M/s.herein after referred to as the Importer/Exporter exemption in terms of Notification No. against the Import Licence no. (herein after referred to as License for the Import of the goods mentioned therein on the terms & conditions specified in the said notification and License)

WHEREAS one of the condition of the said notification being furnishing of surety or security by the Importer for such sum as may be prescribed by the Deputy Commissioner of Customs binding himself to pay on written demanded an amount equal to the duty livable on imported material but for the exemption.

1. We (Bank Name) a Company incorporated under the Companies Act, 1956 and carrying on the business of banking under the provisions of Banking Regulations Act, having its registered office at _____________________________________ and having a branch interalia at __________ (hereinafter referred to as the “bank”, which expression, unless repugnant to the context or meaning thereof shall mean and include its successors and assigns in business), at the request of the Importer/Exporter do hereby unconditionally and irrevocably undertake to pay the government a amount not exceeding Rs. _________ (Rupees ______________________________ ) against any loss, damage caused to or suffered by the Government by reason of failure on the part of the said Importer/Exporter of any of the terms or conditions contained in the said License and Notification No. customs including Export obligation mentioned therein.

2. We (Bank Name) having one of its branch at ____________________ do hereby undertake to pay the amount to the extent of Rs.____________ (Rupees ) due and payable under this guarantee without any demur or protest merely on a written demand from the government stating the amount claimed is due by way of loss or damage caused or suffered by the Government stating the amount claimed is due by way of loss or damage caused or suffered by the Government by reason of breach by the Importer/Exporter or any of the terms and conditions of the license and notification.

3. We (Bank Name) having one of its branch at____________________ undertake to pay to the Government Rs._________ (Rupees __________________________ ) so demanded notwithstanding any dispute or disputes raised by the Importer/Exporter in any suit or proceeding pending before any court or tribunal relating there to and our liability under these presents being absolute and unequivocal.

4. We (Bank Name) having one of its branch at____________________ undertake this Guarantee shall remain in force for …….. years from date of issue i.e. upto and the Bank undertake renew the Bank Guarantee from time to time, on its own our till the matter for which this Bond and Bank Guarantee are being furnished is finally decided and till the Export obligation specified in the Licence schedule above to discharged by the importer and all conditions of the Customs Notification are fulfilled to the satisfaction of the government.

5. That if this Guarantee is not renewed for any reason whatsoever, 30 (Thirty Days) prior to the expiry of this Guarantee, the entire amount guaranteed should become forthwith due and payable to the government and the Bank shall pay amount to the government without any demur.

6. We (Bank Name) further agree with the Government, that the government shall have the fullest liberty without our consent and without effecting in any manner our obligations hereunder (i) to very any of the terms and conditions of the said license. And modify the said scheme from time to time or to (ii) to extend the time for performance by the said Importer/Exporter from time to time or to postpone for any time of from time to time any of the powers excercisable by the Government against the said Importer Exporter and to forbear or enforce any of the terms and conditions relating to the said license and we shall not be relieved from our liability during the tenure of guarantee/reason of any such variation or extension being granted to the said Importer/Exporter for any forbearance, act or commission on the part of the Government of any indulgence by the Government to the said license or by any such matter or thing whatsoever which under the law relating to sureties would, but for this provision have effect of so relieving us.

THAT this shall be continuing Bank Guarantee and shall not be discharged by any change in the constitution of the Importer/Exporter of the Bank.

THAT the guarantor will not revoke the Guarantee without prior written consent of the Government.

All disputes arising under guarantee between the bank and beneficiary or between the supplier and the beneficiary pertaining to guarantee shall be subject to jurisdiction of court only at Mumbai in Maharashtra alone.

All right and obligations arising from this guarantee shall by the laws of Republic of India

Bank Stamp & Signature

Dated :
Place:
 
 

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