Bank Guarantee
Understand Bank Guarantees for customs clearance in India. Know eligibility, application process, fees, compliance requirements under FTDR Act and Customs regulations.
- Calculate guarantee amount with customs broker based on goods invoice value, applicable duty rate, and trade scheme requirements
- Submit IEC, GST registration, audited financial statements, and invoices to your scheduled bank's trade finance department
- Bank verifies credentials and issues Bank Guarantee certificate within 2-5 working days with customs authority as beneficiary
- File original Bank Guarantee with customs house along with Bill of Entry or customs declaration form
- Customs officer validates guarantee and grants duty deferment clearance; goods released upon GST and port charges payment
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What is Bank Guarantee?
A Bank Guarantee (BG) is a financial instrument issued by an Indian scheduled bank on behalf of an exporter or importer to secure customs duties, taxes, and other levies during international trade transactions. Under the Customs Act, 1962 and the Foreign Trade (Development & Regulation) Act, 1992, customs authorities may require bank guarantees to defer payment of duties or to permit clearance of goods pending final assessment. The guarantee ensures that if the importer or exporter fails to fulfill their financial obligations, the bank will compensate the government up to the guaranteed amount.
Bank guarantees in EXIM operations are primarily issued against customs duties for imported goods, pending re-export of damaged or defective items, under the Export Promotion Capital Goods (EPCG) scheme, and for duty deferment schemes. The issuing bank acts as a surety and commits to pay the specified amount to the customs authority if the trade obligation is not met within the validity period.
Pricing
| Package | Price | Details |
|---|---|---|
| Standard | On request | Including document prep |
Process
- 📋Calculate guarantee amount with customs broker based on goods invoice value, applicable duty rate, and trade scheme requirements
- 🔍Submit IEC, GST registration, audited financial statements, and invoices to your scheduled bank's trade finance department
- 📝Bank verifies credentials and issues Bank Guarantee certificate within 2-5 working days with customs authority as beneficiary
- ✅File original Bank Guarantee with customs house along with Bill of Entry or customs declaration form
- 📤Customs officer validates guarantee and grants duty deferment clearance; goods released upon GST and port charges payment
Documents Required
- Valid Importer-Exporter Code (IEC) certified from DGFT portal
- GST Registration Certificate and GST compliance status report
- Audited financial statements for preceding 2 financial years
- Original invoices, bills of lading, and packing lists for imported goods
- Business registration documents (MOA, AOA for companies; partnership deed for firms)
- Bank statement and proof of business continuity for past 12 months
Frequently Asked Questions
Service in Patan
Patan (Gujarat) — our team will guide you through local requirements and documentation.
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