Extension of Warehousing Period of Capital Goods imported by EOU/EHTP/STP-Regd

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....ise & Customs) Subject:  Extension of   Warehousing Period of Capital Goods imported by EOU/EHTP/STP-Regd I am directed to draw your attention to sub-section 1(a) of section 61 of the Customs Act, 1962, wherein it has been provided that capital goods   intended for use in the EOU can be kept in the warehouse for a period of 5 years. Extension of such wareho....

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....he time frame provided in the law. There is no denying that this practice does distract the units attention from export production and the units are always busy in preparation of obtaining timely extension of warehousing to avoid action under law for delay. 3.  As you are aware that the EOU/ EHTP/STP units are required to obtain private bonded warehousing licence u/s 58 of the Cu....

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....allowed for a period for more than five years. [Illustration: In case of an EOU/EHTP/STP unit having obtained  a warehousing license on 1.1.99 would fall due for renewal  after  initial  5 years period  on 1.1.2004. In this case, (i) Assume a C.G has been warehoused on 1-1-2002. Hence, its extension of warehousing falls due on 1-1-2007 (ii) The war....

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....he unit would be required to pay duty and interest. This provision of the notification would remain unaltered. However, while granting extension of capital goods which has not been utilised, the unit   may be asked to  justify the reason for not utilizing the goods. 5.  Nothing contained in this circular  would apply in case of raw materials imported/ procured....