Warehousing – Grant of extension of warehousing period by the Chief Commissioners under section 61 of the Customs Act, 1962-regarding

Warehousing extension: Chief Commissioners must grant limited, conditional extensions emphasizing goods' condition and accrued interest payment.

Section 61 empowers Commissioners and Chief Commissioners to extend warehousing periods; Chief Commissioners must exercise this power restrictively to curb bonded stock and revenue lock-up. Extensions beyond Commissioners' grants should be for the shortest feasible period and only longer where circumstances beyond the importer's control exist. Authorities must ensure goods' condition and may require testing; accrued interest for prior warehousing must be paid before further extension and will be adjusted against final liability. Certain categories of imports may receive a more liberal approach, and trade should file timely applications.