CBITC extends facility of accepting an undertaking in lieu of bond till May 30

The date for the submission of proper bond in lieu of which the undertaking is being temporarily accepted is extended till June 15, 2020.

In a bid to facilitate smooth trade activities in the country, the Central Board of Indirect Taxes and Customs (CBITC), under the Department of Revenue, the Ministry of Finance, Government of India has decided to extend the facility of accepting an undertaking in lieu of bond till May 30, 2020, and the date for the submission of proper bond in lieu of which the undertaking is being temporarily accepted is extended till June 15, 2020.

The Board’s earlier Circular No. 17/2020 dated April 3, 2020, on `Measure to facilitate trade during the lockdown period- section 143AA of the Customs Act, 1962′ had given a relaxation, in the context of a lockdown announced by the Government due to COVID-19 pandemic, to accept an undertaking in lieu of a bond required during customs clearance, subject to conditions as underlined in the circular. The facility was extended till 15.05.2020 vide Circular 21/2020 dated 21.04.2020

However, the Ministry of Home and Affairs’ order 40-3/2020 DM – I (A) dated May 1, 2020, extended the lockdown for two weeks with effect from May 4, 2020, and taking into consideration that it might take sometime after the end of the lockdown for the situation to normalise, the Board decided to further extend the facility further, informed the circular.

This relaxation will be reviewed by the Board at the end of the lockdown period.

Speaking on the extension given, Harish Jain, Secretary, Karnataka Drugs and Pharmaceutical Manufacturers Association said, “It will promote ease of doing business and is a sign of trust between the stakeholders and the government authorities. However, the industry expects this measure to be made permanent instead of a temporary move.”

Dr Dinesh Dua, Chairman, Pharmexcil, commented, “It is the right step at the right time. It may have to be reviewed and revisited as we expect lockdown extension till May 2020 end and the extension will have to be further enhanced to July 15, 2020.”

Nipun Jain, Chairman, Small and Medium Pharma Manufacturers Association said, “It is a welcome step initiated by the authorities at the right time. This will work in favour of the industry and smoothen the work.”

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