With the promulgation of Central Excise Rules (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) 2016 and the Customs Rules (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) 2016 and their respective amendments, which are effective from 01 April 2016, for any import / purchase by an importer/ purchaser of goods at concessional rate of duty for manufacture of excisable goods, an importer / purchaser shall provide a surety to avail concessional rate of duty. The surety may be provided by any person including a corporate entity having requisite solvency.
In order to enable Zuari Agro Chemicals (ZACL) to import / purchase of Sulphuric Acid, Phosphoric Acid and Ammonia procured for manufacture of fertilizers by ZACL at concessional rate of duty in one or more tranches during the year 2016-17, the Company has given surety on behalf of ZACL for an amount of Rs. 225 crore. Further, the liability under the surety extinguishes as and when ZACL consumes the imported / purchased goods for the manufacture of fertilizer. Similar facility is extended by Zuari Agro Chemicals to the Company for its imports/purchases of raw materials/fertilsers.
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