Circular No. 32/2003-Customs
7th  April, 2003 

F.No. 473/25/2002-LC
Government of India
Ministry of Finance and Company Affairs
Department of Revenue

Sub : Warehousing – Grant of extension of warehousing period by Chief Commissioners under Section 61 of the Customs Act, 1962 – regarding –

I am directed to refer to correspondence resting with the instructions contained in Board’s Circular No.03/2003-Customs, dated 14-01-2003 (F.No.473/25/2002-LC) permitting re-export of the goods under Section 69 of the customs Act, 1962 after extending the period of warehousing under Section 61 ibid even after the expiry of initial or extended period of warehousing and  also after the issue of demand notices u/s 72 of the Customs Act, 1972 to enable the importers to export the goods within the permitted extended  period of warehousing. However, a doubt has  arisen whether waiver of interest can be considered in respect of goods, which have been re-exported  but not utilized/installed and commissioned due to certain defects as has been noticed after the clearance of the goods.

2. The matter has been examined further. It has now been decided that the request for waiver of interest in case of re-export of capital goods may be considered favourably, if on clearance, such goods would not be installed, commissioned and used due to the facts that the goods were found defective or sub-standard, and therefore unfit for usage.

3.  Chief Commissioners are, therefore, requested to consider/decide such  requests for waiver of interest in the light of Board’s aforesaid decision in the matter. The contents of this Circular may be brought to the notice of the filed formations and the Trade under your jurisdictions.

4.  This issues in continuation of Board’s Circular under reference.

S.M. Akhter
Under Secretary(LC)

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