Bond & Bank Guarantee (BG) Cancellation of EPCG/Advance License

Step-by-Step Process for Bond & BG Cancellation

This is what happens when you close your EPCG or Advance License:

Step 1: Check to See If All Export Obligations Have Been Satisfied

Verify that you have fulfilled all of your obligations as outlined in your license. This includes checking the quantities, amounts, and time limits that were mentioned in the authorization granted by the DGFT.

Step 2: Request a License Redemption from DGFT

Provide your export evidence (shipping bills, eBRCs, invoices, etc.) to DGFT for redemption. After DGFT verifies the proof, they issue an EODC/Redemption Letter, which confirms that you have fulfilled all of your export obligations.

Step 3: Gather Documents Needed for Bond/BG Cancellation

Collect all required files, including the redemption letter, a copy of your license, invoices, and BRCs. The original Bond or BG should also include a formal request to cancel your bond.

Step 4: File Your Cancellation Request with Customs/Port Office

Deliver your complete documents package to the Customs office where your bond and/or BG was initially filed, along with a cover letter.

Step 5: Follow Up and Obtain Confirmation of Approval

After Customs verifies your paperwork, checks it against DGFT records, and processes the cancellation, you’ll get official confirmation that the cancellation has been finalized, and your bank will discharge your BG.

Afleo will make sure that every step is done rapidly with correct documentation and frequent follow-up for faster approval.

Documents Required for Bond & BG Cancellation

Making certain that all your files are complete and in order is important for an efficient and prompt procedure. The list below shows the information needed:

• Copy of the EPCG/Advance Authorization License.
• Copy of EODC/Redemption Letter issued by DGFT.
• A copy of the bond and/or BG executed with Customs.
• Letter from the bank confirming details and validity of the BG.
• Shipping Bills, BRCs, and Invoices.
• ARE-1 Forms (if applicable for excisable goods).
• Cover letter requesting cancellation.
• Any relevant communication between Customs.

Need Help with how to get shipping bills? Read our detailed guide about How to Download Shipping Bill from ICEGATE

Afleo will check your files before delivery to Customs to ensure that there is no reason why your file cannot be rejected or delayed.

Challenges That Exporters Typically Face When Trying to Cancel Their Bonds and BGs

Numerous exporters encounter barriers when trying to cancel their bonds and BGs, among them:

• Delay in receiving DGFT’s redemption letter because of incomplete or incompatible export data.
• Inconsistencies between DGFT and Customs’ records.
• Missing shipping bills or insufficient documentation resulting in rejection of the file.
• Uncertainty about the appropriate way and location to send the request for cancellation.

Afleo helps its clients resolve these difficulties by creating a complete file, collaborating between DGFT and Customs, and ensuring that the cancellation of their bonds and BGs is accepted on the initial submission.

How Does Afleo Assist You

Afleo Group provides you with the expertise you need to cancel your bond and bank guarantee with speed and professionalism.

Services Provided By Afleo:

• An experienced staff with thorough familiarity with the processes of DGFT and Customs.
• Preparation of your files with rapidity and with zero errors.
• Full service, from start to finish, for processing your request for cancellation at Customs.
• Regular follow-up until the bank releases your BG, confirming approval.
• Transparent and trouble-free method of working, saving you time, resources and costs.

Afleo has supported hundreds of exporters in closing their EPCG and Advance Authorizations in many Customs Zones throughout India.

Allow Afleo to assist you with the swift and hassle-free closure of your EPCG or Advance License through the professional bond and BG cancellation service.