Acceptance of LUT in place of BG for export warehousing
BOARD invites attention to Circulars No. dated 26.06.2001 and dated 29.06.2001, which prescribes conditions, procedures and safeguards applicable for storage in a warehouse registered at such places as may be specified by the Board and export therefrom.
And makes the following changes -
++ In paragraph 6 [Period of warehousing] of the Circular No. existing clause (a) and clause (b) are replaced to read -
(a) Warehousing of goods shall initially be allowed for a period upto six months, which may be further extended by the Assistant /Deputy Commissioner, each extension being for a period not exceeding six months, subject to the verification that the goods have not deteriorated in quality. The maximum period, for which goods may be left in the warehouse in which they are deposited, or in any warehouse to which such goods have been removed, shall be three years from the date on which such goods were first warehoused. Excisable goods shall be deemed to be cleared for home consumption on expiry of the warehousing period including the extensions granted, if any. Duty and interest @ 24% per annum shall be charged on such deemed removal.
(b) If the registration of a warehouse is revoked or suspended, the excisable goods lodged therein shall either be cleared for home consumption on payment of duty and interest @ 24% per annum or shall be removed to another warehouse without payment of duty.
++ So also, paragraph 3.2 and paragraph 4.2.1 [Furnishing of Bank Guarantee] in the Circular No. are amended as follows:
(i) Paragraph 3.2: After the words "backed by twenty five percent security of the bond amount " the words "in the manner as prescribed in paragraph 4.2" shall be added.
(ii) Paragraph 4.2.1: A proviso, as follows, shall be inserted at the end of the paragraph.
Provided that where the exporter is a manufacturer and a Status Holder with a clean track record, the requirement to furnish security equal to 25% of the bond amount shall be replaced by the requirement of furnishing an LUT initially for a period upto six months which may be extended by a further period not exceeding six months. Further extensions in the warehousing period in terms of paragraph 6(a) of the Circular No. 579/16/2001-CX dated 26.06.2001 shall be allowed to such exporter only on furnishing security of 25% of the bond amount.
++ The Board also feels that there is a need to amend the terms "Super Star Trading House" or "Star Trading House" in the Circular No. and replace them with the current nomenclature "The exporters who are Status Holder under FTP - 2009-14". So, the paragraph 2(1) of the Circular is amended accordingly.
The effect of this amendment is that Export Warehousing facility would become available to all Status Holders under FTP of 2009-14.
Hope the trade is happy.
Circular , Dated: December 12, 2013