Amendment of Section 61 of the Customs Act, 1962 regarding interest free warehousing period  - Clarification thereto.

Document Text

Circular No. 93 /2003-CUS 28th October 2003 F.No.473/12/2001-LC Government of India Ministry of Finance Department of revenue Sub: - Amendment of Section 61 of the Customs Act, 1962 regarding interest free warehousing period - Clarification thereto - reg. Section 61 of the Customs Act, 1962 has been amended to read “ where any warehoused goods specified in sub-clause (b) of sub-section (1), remain in a warehouse beyond a period of ninety days, interest shall be payable at such rate or rates not exceeding the rate specified in section 47, as may be fixed by the Board, on the amount of duty payable at the time of clearance of the goods in accordance with the provisions of section 15 on the warehoused goods, for the period from the expiry of the said ninety days till the date of payment of duty on the warehoused goods.” 2. In this regard clarification has been sought from Board as to whether the goods which have been bonded prior to 14.5.2003 will be entitled to interest free period of 30 days or 90 days. 3. In this context, reference is invited to the earlier Circular no. 62/99, dated 17.9.99, on the subject, wherein on the basis of advice tendered by the Ministry of Law, it was clarified that revised interest effective from 12.5.99 is applicable in respect of goods warehoused prior to that date but only from the expiry of six months or 12.5.99 whichever is later. Accordingly, it is again being clarified that all goods which are cleared after 14.5.2003, irrespective of their date of warehousing, i.e. whether prior to or after 14.5.2003, shall be eligible for the interest- free period of a total of 90 days. S.M.Akhter Under Secretary to the Govt. of India

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