Warehoused goods retain customs status after expiry of warehousing period, enabling EPCG-linked export relief without duty or interest.

Goods remaining in a bonded warehouse after expiry of the original warehousing period continue to retain their warehoused status and are not treated as cleared from customs merely because time has lapsed. On that basis, EPCG-linked relief could be extended where the goods had not been cleared on payment of duty, and the relevant policy and Notification No. 49/2000-Cus. were read as permitting issuance and use of a valid licence for such goods. The later Board circular was also treated as recognising that warehoused goods retain that character after expiry of the warehousing period. Duty and interest could not therefore be insisted upon as a condition for export, and the warehousing arrangement was extended.

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Issues: Whether goods continuing in a bonded warehouse after expiry of the warehousing period could still be treated as warehoused goods not yet cleared from customs, and whether the importer could obtain EPCG-linked relief and export the goods without insisting on duty or interest.

Analysis: The goods remained in the warehouse under customs control even after expiry of the original warehousing period and were not to be treated as cleared from customs merely because the warehousing period had lapsed. The EPCG policy and Notification No. 49/2000-Cus. contemplated issuance and use of a valid licence for goods already shipped or arrived so long as customs duty had not been paid and the goods had not been cleared from customs. The later Board circular also recognised that warehoused goods continued to retain that status after expiry of the warehousing period and could be dealt with accordingly. In these circumstances, the demand for duty and interest could not be insisted upon as a bar to the requested relief.

Conclusion: The relief was accepted in favour of the assessee, and the goods were permitted to be exported without insisting on duty or interest, with consequential extension of the warehousing arrangement.

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