Extended Period of Warehousing - Request From Shipyards
CBEC has received a request from a unit engaged in the business of design and construction of various categories of vessels which are thereafter exported, for grant of a greater period of warehousing, given the nature of their activity which has long gestation period, to obviate the need for approaching the Customs for extension of warehousing period, every three months.
As per Circular No. 47/2002-Cus dated 29/07/2002, Commissioner of Customs can extend the period of warehousing for a period not exceeding six months, on sufficient cause being shown and further extensions as deemed fit can be granted by the Chief Commissioner of Customs. Such extension is to be granted in deserving cases for a period not exceeding three months at a time. The conditions for granting extension, are that the goods are not likely to deteriorate during the extended period of warehousing and that interest accrued on the goods in the preceding period should be collected.
Now Board suggests that for Goods used in the units operating under manufacture-in-bond scheme and Machinery, equipments and raw materials imported for building and fitment to ships , Chief Commissioner may consider granting the extension of warehousing period for a period even greater than 3 months, if she/ he is satisfied that the said goods are in good condition and are not likely to deteriorate in quality in the proposed period of extension and also if interest accrued on the goods in the preceding period is realized.
CBEC Instruction in F. No 473/02/2011-LC, Dated: June 01, 2011