A B-17 Bond is a consolidated customs bond required to operate under schemes like MOOWR. It acts as a financial safeguard for Customs, ensuring compliance with warehousing, duty payment and procedural obligations.
What Is a B-17 Bond?
The B 17 Bond is a single, comprehensive bond that replaces multiple individual bonds earlier required for warehousing, manufacturing and removal of goods. Under MOOWR, it covers the customs duty, interest and penalties that may arise if conditions of the scheme are violated.
Purpose Under MOOWR
For MOOWR units, the B 17 Bond secures the duty deferred on imported raw materials and capital goods stored or used in the bonded warehouse. It ensures that Customs can recover duties if goods are cleared improperly or compliance requirements are not met.
Bond Amount
The bond value is generally equivalent to the maximum customs duty liability on goods expected to be warehoused at any given time. Customs determines the amount based on projected imports and inventory levels.
How to Execute the B 17 Bond
After MOOWR approval in principle, the applicant executes the B 17 Bond with the jurisdictional Customs authority. It is usually submitted online through the ICEGATE portal, along with a bank guarantee if required. In many cases, financially sound entities may receive partial or full waiver of the bank guarantee. Once accepted, the bond remains valid for continued operations under MOOR.
Learn more about the MOOWR scheme at https://www.jparks.co/services/apply-for-moowr-scheme/.
