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Instructions regarding Warehousing - Grant of extension in the
warehousing period under section 61 of the Customs Act, 1962 after expiry of the
warehousing period
Circular
No. 12
dated
5th March 1998
Section 61 of the Customs Act, 1962 lays down the
period for which the imported goods can be warehoused. The first proviso to this
Section provides that the period of warehousing prescribed, on sufficient cause
being shown, can be extended for period not exceeding 6 months by Commissioner
of Customs. Further extension in the period can be granted by the Chief
Commissioner of Customs.
2. A doubt has
arisen whether extension in the warehousing period can be granted when the
application for extension is moved after the expiry of the initial or extended
warehousing period. Section 61 of the Customs Act, 1962 is silent on this issue.
3. In order to
arrive at a uniform practice in granting such extensions, the matter was
examined in consultation with Ministry of Law. Consequently it has been decided
that the importers may be advised to file such applications for extensions in
the warehousing period to the proper authority well before the expiry of
initial/ extended period of warehousing.
4. However, in cases
of exceptional circumstances, the extensions in the warehousing period can be
considered and granted even after the expiry of initial/ extended
warehousing period. In all such cases, the jurisdiction - Chief Commissioner may
himself decide the request for extension after taking into consideration the
exceptional circumstances, the nature of the commodity, the rate of duties,
particularly, whether the same results in loss of revenue to the Government, the
licensing aspects involved etc.
5.
Receipt of this letter may please be acknowledged.
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