Bank guarantees in favour of custom & excise

Please arrange for the original BG alongwith amendments to be returned by the beneficiary to the Bank. Only then can Bank close the BG and release the margins.

I know this is the practical problem faced by virtually all the BG applicants where BG is issued in favour of Govt depts. Pls talk to your bank and ask if they can close the BG and release margin if the beneficiary writes a letter to the bank saying that "there is no claim on the BG and the bank is relieved of its liabilities under the BG". If the bank agrees to closing the BG and releasing the margin on the basis of such a letter (without the original BG being submitted), pls pursue with the Customs people to write such a letter. They will not do it, so write such a letter on a plain piece of paper, take that letter to them and get the Customs officer's signature and stamp on the letter. Arrange for dispatch of the letter from the Customs office (if the bank insists that letter should be addressed to the bank and should be sent directly to the bank). You will have to arrange for some chai-pani but as a Banker dealing in BGs, I can tell you that there is no alternative.