QUESTION
 

Who is the competent authority to accept the extension of various bonds/BGs ( like Provisional Bond, Test Bond, warehouse Bond etc.) executed during import procedure ? When is the right time to apply for extension of bond? what are the consequences, if applied after the Bond expired ? Fine penalty imposed under which section?  

ANSWER    
 

The Bond is executed by the importer at the time of Import of material under various Notifications. There is a provision for Import of goods at confessional rate of duty as well as without payment of duty.

The Notification under which this benefit is given also contains the procedure to be followed relating to execution of bond. Since you have not mentioned any particular Notification under which goods are imported, we are giving here in under General provisions:

1. The extension should be applied before the Bond is expired.

2. The Application should be given to the Authority who has accepted the Bond.

3. In case Bond is expired then the Custom Authorities can enforce the recovery procedure. But if the recovery procedure has not been initiated then the Applicant may approach the Bond Sanctioning Authority and may request for condensation of delay. The delay may be condoned by the Bond Sanctioning Authority.

4. If the Bond is executed to get some benefit under FTP and some limitation of time is given in the FTP for attaining of the benefit, then before extension of Bond, the extension of time should be taken from concerned DGFT Authority. (Reply dt.30.12.2020)