Execution of LUT/BG against Import Authorization Issued to Restricted Items on Re-export Basis
[DGFT Policy Circular No. 39 dated 15th July 2010]
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.