India’s Central Board of Indirect Taxes and Customs (CBIC) recently notified the waiver of bank guarantee for transhipment of import and export cargo via Sri Lanka and Bangladesh. It was told customs authorities at some ports are insisting that ship owners provide bank guarantee for carriage of export-import (EXIM) cargo containers for transhipment from east coast to west coast ports via Colombo.
A CBIC circular dated November 24, 2005, waives the requirement of execution of bank guarantee for the purpose of transhipment in respect of carriers of containerised cargo that handle more than 1,000 TEUs as import containers in a fiscal. Now carriers having annual transhipment volume below 1,000 TEUs, but with good track record, can get the benefit as well.
The board decided to extend the exemption from requirement of furnishing of bank guarantee by the carriers for carriage of EXIM cargo for transhipment through Sri Lanka and Bangladesh if the carrier fulfils the requirement of waiver of bank guarantee in a like manner.