APPENDIX 25 A

 

BANK GUARANTEE FORMAT

 

To,                                                             

        The President of India                                     

        Acting through the Director General of Foreign Trade                                    

                                                                   

In consideration of the President of India, acting through the Director General of Foreign Trade (which expression shall be deemed to include the Joint  Director General of  Foreign Trade/Deputy Director General of Foreign Trade), or any other licensing authority for the time being authorised to perform the duties of Joint Director General of Foreign Trade/Deputy Director General of Foreign Trade), Ministry of Commerce, Government of India, New Delhi (hereinafter referred to as the Government) having agreed to grant to ___________________(full expanded name of the Importer/Exporter with complete address) (hereinafter referred to as Importer/Exporter) a licence being  licence No.__________ dt.____ (hereinafter referred to as Licence for the import  of the goods mentioned  therein) for a value  of Rs._________ (Rupees ___________________  only)   under  the___________________ Scheme (fill up the actual Scheme)  notified by the Government under the Foreign Trade Policy 2004-09 as may be amended from time to time  (hereinafter referred to as scheme) on the terms and conditions  specified in the said licence which term inter alia stipulates  production of a Bank guarantee for Rs._________________ (Rupees  ___________ only). We ____________________  (indicate the name and full address and other particulars of the Bank) (hereinafter referred to as Bank) at the request of the  Importer/Exporter do hereby  unconditionally and irrevocably undertake to pay the Government  an amount not  exceeding  Rs.____________ against any loss or damage caused to or suffered by the Government by reason of any failure on the part of the said Importer/ Exporter of any of the terms or conditions contained in the said licence including the export obligation mentioned therein.

 

2.   We ___________________ (indicate the name of Bank) do hereby undertake to pay the amounts due and payable under this guarantee without  any  demur  or  protest, merely on  a  demand  from  the Government stating that the amount claimed is due by way of loss or damage  caused  or  suffered by the Government  by  reason  of breach by the Importer/Exporter of any of the terms or conditions of the  said licence.  Any such demand made on the Bank shall be conclusive as regards the amount due and payable by the Bank under these presents.                                           

                           

3.   We undertake to pay to the Government any money so demanded notwithstanding   any   dispute or   disputes raised   by   the Importer/Exporter in any suit or proceeding pending before any court or Tribunal relating thereto and our liability under these presents being absolute and unequivocal.                        

                                                                  

4.   We,_________________(indicate  the  name  of  Bank)  further agree  that  the guarantee herein contained shall remain in  full force  and  effect during the period that would be taken for  the performance  of the said licence and that it shall continue to be enforceable  till  all the obligations of  the  Importer/Exporter under or by virtue of the said Licence have been fully discharged to the satisfaction of the Government or till Jt.DGFT/Dy.DGFT, or any Licensing  authority for the time being authorised to perform the duties  of  Jt.DGFT/Dy.DGFT, Ministry of Commerce, New  Delhi certifies  that the terms and conditions of the said Licence have been fully  and properly carried out by the Importer/Exporter and accordingly discharges this guarantee.  Provided, however, unless a demand or claim under this guarantee is made on us in  writing on or before the ______________.  We shall be discharged from all liability under this guarantee thereafter.                       

                                                                   

5.   We ____________________ (indicate the name of bank), further agree  with  the  Government that the Government shall  have  the fullest  liberty without our consent and without affecting in any manner our obligations hereunder (i) to vary any of the terms and conditions  of  the said Licence and modify the said scheme  from time to  time  or (ii) to extend time of performance by the  said Importer/Exporter  from time to time or to postpone for any  time or (iii)  from time to time any of the powers exercisable by  the Government  against the said Importer/Exporter and to forbear  or enforce  any  of  the terms and conditions relating to  the  said Licence and we shall not be relieved from our liability by reason of any  such  variation, or extension being granted to  the  said Importer/Exporter  for  any forbearance, act or omission  on  the part of the Government or any indulgence by the Government to the said Licensee  or  by any such matter or thing  whatsoever  which under the law relating to sureties would, but for this provision, have effect of so relieving us.

                That this shall be a continuing Bank Guarantee and shall not be discharged by any change in   the   constitution of   the importer/exporter or of the Bank.

                                                                   

That  the  guarantor will not revoke the  guarantee  without prior written consent of the Government.                        

                                                                                          

"Dated the_______________day of____________year_________  for  ______________________ indicate the name of the Bank)" 

 

Note:      “The Bank Guarantee shall be valid till the expiry of the Export Obligation period plus six months.”