Govt. of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
15th February, 2016
To
All Principal Chief Commissioners/ Chief Commissioners of Central Excise,
Customs & Service Tax,
All Principal Chief Commissioners/Chief Commissioners of Customs,
All Principal Chief Commissioners/Chief Commissioners of LTU.
Sir,
Sub: Process of extension of re-warehousing period of Bonded capital
goods –reg.
The STP/EOU/EHTP Units are premises bonded under Section 58 read
with Section 65 of the Customs Act, 1962. Capital Goods imported by these
units are bonded for the periods provided under Section 61. The License of the
Private Bonded Warehouse is granted by the jurisdictional Assistant
Commissioner or Deputy Commissioner in terms of Section 58 for a period of
five years. Further, the warehousing period in respect of the capital goods
lying
in the warehouse under the provisions of Section 61 of the Customs Act, 1962
is for a period of 5 years from the date of bonding. Trade has represented that
the renewal of the Private Bonded Warehouse License and the extension of
warehousing period for the bonded capital goods are not coterminous. This
creates difficulties for them, as they have to approach authorities at the
different times for extension of period.
2. To obviate the difficulty faced by trade, Board has already addressed this
issue vide circular No. 7/2005-Cus dated 14.02.2005. For ease of
understanding by the field formations, the operative part of the said circular
is
reproduced below:
“The EOU/ EHTP/STP units are required to obtain private bonded
warehousing licence u/s 58 of the Customs Act. The said licence is valid for a
period of 5 years and the units are required to apply for renewal after every 5
years. The Board in order to obviate the difficulties of the EOU/EHTP/STP
units has decided to allow extension of warehousing of all the capital goods
installed or put into use, simultaneously at the time of renewal of
warehousing licences irrespective of the fact that the capital goods are due for
extension or not. The period of extension would be allowed for such a period
so that the capital goods need further extension only on the date of renewal of
warehousing license. The period of extension, therefore may be adjusted
accordingly for every piece of capital goods. However the maximum period of
extension at a time would not be allowed for a period for more than five years.
[Illustration: In case of an EOU/EHTP/STP unit having obtained a
warehousing license on 1.1.99 would fall due for renewal after initial 5 years
period on 1.1.2004. In this case,
- Assume capital goods have been warehoused on 1-1-2002. Hence,
its extension of warehousing falls due on 1-1-2007
- The warehousing license under section 58 becomes due for renewal
on 1-1-2004, and the same would be renewed for further five year
period i.e upto 1-1-2009
- Extension of warehousing period for capital goods at (i) above would
also be given on 1-1-2004 along with renewal of warehousing
license for a period upto 1-1-2009.]”
3. Board has again examined this issue and has reiterated that instruction
contained in para 2 be strictly followed and no inconvenience be caused to the
trade especially EOU/STP/EHTP on account of this issue.
Yours faithfully,
(Dr. Tejpal Singh)
Addl. Dir. General
DGEP/FTP/07/2015
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