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Regarding relevant data for calculations of customs duty in cases where
warehoused goods are cleared after the expiry of warehousing period
Circular No. 98dated 18th
September 1995
I am directed to
refer to the board's circular F.No. 473/ 206/ 87/ CUS - VII dated 12.7.89 (copy
enclosed) on the above subject and to say that the instructions contained
therein may please by strictly adhered to.
Relevant data for
calculation of customs duty in cases where warehoused goods are clearedafter
the expiry of warehousing period
I am directed to
refer to Board's instructions contained in F.No. 483/ 17/ 85-Cus- VII dated 17th
March, 1987 on the above mentioned subject wherein it was clarified that in
cases where warehoused goods are cleared from a warehouse after the expiry of
the bond period, the rate of duty shall be the one which is prevalent on the
date of expiry of the bond.
2. The
issue was re-considered in the Tripartite Meeting held in the Ministry of Law
with the representatives of the Department of Revenue and CA-AG. It was observed
in the meeting that on expiry of warehousing period, the goods kept in a
warehouse cease to be warehoused goods and, therefore, their removal from the
warehouse cannot be regarded as covered by the provisions of section 15(1)(b) of
the Customs Act. It was also noted that there was no specific legal provision to
determine the rate of duty in such cases of warehoused goods where the bond
period has expired. It was accordingly concluded that the residual clause of
section 15(1)(c) of the Customs Act could apply the cases where the goods are
removed from a warehouse after expiry of the warehousing period and that the
rate of duty in such case shall be the rate prevalent on the date of payment of
duty.
3. The
provisions of section 15(1)(b) of the Customs Act would, however, continue to
apply in cases where the goods are cleared from the warehouse after extension of
the warehousing period but before expiry of the extended period. For applying
this provision, the applications from the importers for extension of the
warehousing period shall be received before the expiry of the permitted period
of warehousing. If such applications are received after expiry of warehousing
period, including the extended period, the extensions cannot be granted as such
goods cannot be regarded as warehoused goods.
4. Board
has accepted the above conclusions reached in the Tripartite Meeting as brought
out in para 2 and 3 above. These may be implemented with immediate effect. This
supersedes Board's instructions issued vide F.No. 483/ 17/85-Cus -VII dated 17th
March 1987.
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