Wait...

  • >
  • >
  • >
  • >
  • Miscellaneous
  • Online India Export Import Data Search

    Levy of Interest under Section 47(2) of the Customs Act, 1962 for delayed payment of duty in respect of clearance of goods from a bonded warehouse , Customs Circular No 15/2009, 12-05-2009



    Date: 12-05-2009
    Notification No: Customs Circular No 15/2009
    Issuing Authority: Indian Customs  
    Type: Circular
    File No: 473/01/2007 – LC
    Subject: Levy of Interest under Section 47(2) of the Customs Act, 1962 for delayed payment of duty in respect of clearance of goods from a bonded warehouse

    Government of India
    Ministry of Finance
    Department of Revenue
    Central Board of Excise & Customs

    Circular No.15/2009- Customs

    Dated the 12 May, 2009

    Subject: Levy of Interest under Section 47(2) of the Customs Act, 1962 for delayed payment of duty in respect of clearance of goods from a bonded warehouse – Reg.

    A reference is invited to Section 47 (2) of the Customs Act 1962, which provides that where the importer fails to pay the import duty within 5 working days from the date on which the Bill of Entry for home consumption is returned to him for payment of duty, he shall pay interest on the amount of duty till the date of payment of the duty, at the rate fixed by the Central Government. A doubt has been raised whether such interest under Section 47 (2) is payable on goods deposited in a warehouse and for which a Bill of entry for home consumption is filed under Section 68 of the said Act, if the importer fails to pay the duty within 5 working days from the date on which such Bill of Entry filed under Section 68 is returned to him for payment of duty.

    1. The matter has been examined by the Board. As per Section 46 of the Customs Act, 1962, the importer of any goods, other than goods intended for transit or transshipment, shall make entry thereof by presenting to the proper officer a bill of entry for home consumption or warehousing in the prescribed form. The provision regarding payment of interest for delayed payment of duty after the return of Bill of Entry is contained in Section 47 which reads as under:

      “(1) Where the proper officer is satisfied that any goods entered for home consumption are not prohibited goods and the importer has paid the import duty, if any, assessed thereon and any charges payable under this Act in respect of the same, the proper officer may make an order permitting clearance of the goods for home consumption.

      (2) Where the importer fails to pay the import duty under sub-section (1) within five days excluding holidays from the date on which the bill of entry is returned to him for payment of duty, he shall pay interest at such rate, not below ten per cent and not exceeding thirty six per cent. per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette, on such duty till the date of payment of the said duty”.

    2. A harmonious reading of the above provisions indicates that the provisions of Section 47 (1) are applicable to the goods entered for home consumption by filing a bill of entry accordingly, and the interest liability for delayed payment of duty after the return of Bill of Entry is attracted on import duty as assessed under Section 47 (1) on such goods.

    3. In case of goods deposited in a warehouse and being cleared for home consumption, the entry for clearance (i.e. ex-bond Bill of Entry) is made under Section 68. As per Section 68 of the Act, the importer of any warehoused goods may clear them for home consumption, if
      1. a bill of entry for home consumption in respect of such goods has been presented in the prescribed form;

      2. the import duty leviable on such goods and all penalties, rent, interest and other charges payable in respect of such goods have been paid; and

      3. an order for clearance of such goods for home consumption has been made by the proper officer.

    4. Section 68 is a self-contained provision dealing with the clearance of goods from a warehouse for home consumption and this provision does not contain a reference to payment of interest on delayed payment of duty after return of Bill of Entry.

    5. Further, as per the provisions of Section 61 (2), interest on warehoused goods is payable when they remain in the warehouse beyond the permitted warehousing period specified in Section 61 (1). Such interest is payable on the amount of duty payable at the time of clearance of the goods from the expiry of the said warehousing period (including such extended period), till the date of payment of duty on the warehoused goods. Thus, when a provision has been made for warehousing of imported goods, without payment of interest for a specified period, it is not the intention to charge interest within the said interest-free period, even if duty is paid after 5 days after return of the ex-bond Bill of Entry. Interest in any case is chargeable if the warehoused goods remain in the warehouse beyond the permitted period for the period from the expiry of the said period till the date of payment of duty on the warehoused goods.

    6. In view of the foregoing, it is clarified that the provisions of Section 47 (2) are not attracted in case of clearances made under Section 68. Consequently, no interest is liable to be paid on goods deposited in a warehouse and being cleared for home consumption by filing the Bill of Entry prescribed under Section 68 of the Act, ibid, for delayed payment of duty i.e. if the importer fails to pay the duty within 5 working days from the date on which such Bill of Entry is returned to him for payment of duty. However, interest on warehoused goods is payable when they remain in a warehouse beyond the period specified in sub-section (1) of Section 61 as per provisions of sub-section (2) of Section 61.

    7. Wide publicity to this Circular may be given by way of issuance of public notice and standing order.

    8. Difficulties, if any, faced in the implementation of this circular, may be immediately brought to the notice of the Board.

    9. Please acknowledge receipt.
    10. Hindi version follows.

    Yours faithfully,
    (P. S. Pruthi)
    Commissioner (Customs &EP)
    F. No. 473/01/2007 – LC

     
           

    DO YOU NEED HELP?







    Enquiry Form

    Fields marked with an asterisk * are required.
    +



    What is New?

    Date: 26-09-2016
    Central Excise Notification No. 46/2016 CE (NT)
    Seeks to amend Notification No. 20/2016-CE (NT) dated 01.03.2016 [Central Excise (Removal of Goods at Concessional Rate of Duty for manufacture of Excisable and other Goods) Rules, 2016]

    Date: 26-09-2016
    Service Tax Notification No. 42/2016 (ST)
    Services by way of advancement of Yoga provided by entities registered under Section 12 AA of Income-tax Act, 1961.

    Date: 23-09-2016
    Trade Notice No. 18/2016
    Clarification in respect of definition of service provider under Common Service Providers (CSP) in Export Promotion Capital Goods (EPCG) scheme.

    Date: 23-09-2016
    Customs Notification No. 51/2016
    Seeks to further amend notification No.12/2012-Customs dated the 17th March, 2012, so as to: 1. Reduce import duty on potatoes from 30% to 10% up to 31.10.2016. 2. Reduce import duty on wheat from 25% to 10% up to 29.02.2017. 3. Reduce import duty on palm oil from 12.5% to 7.5% for crude palm oil of edible grade, and from 20% to 15% for refined palm oil of edible grade.

    Date: 23-09-2016
    DGFT Public Notice No. 33/2015-2020
    Amendment in ANF-5A [Applicationj for issue of EPCG Authorisation ] incorporating the guideline for designating/certifying a Common Service Provider (CSP) under Para 5.02 (b) of FTP 2015-20-reg.

    Date: 23-09-2016
    Customs Notification No. 52/2016
    Seeks to further amend three Customs notifications namely 104/2009-Cus, 16/2015-Cus and 17/2015

    Date: 23-09-2016
    Customs Circular No. 45/2016
    Explains option extended by DGFT for surrendering one benefit in case of simultaneous issuance of SHIS and Zero duty EPCG/PE EPCG

    Date: 22-09-2016
    Customs Notification No. 122/2016 (NT)
    Rate of exchange of conversion of the foreign currency with effect from 23rd September, 2016

    Date: 22-09-2016
    Customs Circular No. 44/2016
    Regarding setting up of 'Custom Clearance Facilitation Committee' (CCFC) for Land customs stations and Inland Container Depots-reg

    Date: 22-09-2016
    Trade Notice No. 17/2016
    Refund of Terminal Excise Duty(TED) under Deemed Exports where Duty has been paid from CENVAT Credit and ab-initio waiver is not availabe.



    Exim Guru Copyright © 1999-2016 Exim Guru. All Rights Reserved.
    The information presented on the site is believed to be accurate. However, InfodriveIndia takes no legal responsibilities for the validity of the information.
    Please read our Terms of Use and Privacy Policy before you use this Export Import Data Directory.

    EximGuru.com

    C/o Infodrive India
    E-2, 3rd Floor, Kalkaji Main Road
    New Delhi - 110019, India
    Phone : 011 - 40703001