Extension of re-warehousing period of Bonded capital goods - ease of understanding by field formations!
GOVERNMENT is now on an ‘ease' drive - after proactive actions for ease of doing business, it is now ease of understanding by the field formations. The CBEC has simply extracted a para from a Circular issued by the Board 11 years ago for ease of understanding by the field formations.
The Board letter states,
The STP/EOU/EHTP Units are premises bonded under Section 58 read with Section 65 of the Customs Act, 1962. Capital Goods imported by these units are bonded for the periods provided under Section 61. The License of the Private Bonded Warehouse is granted by the jurisdictional Assistant Commissioner or Deputy Commissioner in terms of Section 58 for a period of five years. Further, the warehousing period in respect of the capital goods lying in the warehouse under the provisions of Section 61 of the Customs Act, 1962 is for a period of 5 years from the date of bonding. Trade has represented that the renewal of the Private Bonded Warehouse License and the extension of warehousing period for the bonded capital goods are not coterminous. This creates difficulties for them, as they have to approach authorities at the different times for extension of period .
To obviate the difficulty faced by trade, Board has already addressed this issue vide circular No. 7/2005-Cus dated 14.02.2005. For ease of understanding by the field formations, the Board has reproduced the operative part of the said circular.
The sum and substance of the Board Circular of 2005 is that to obviate the difficulties of the EOU/EHTP/STP units, Board has decided to allow extension of warehousing of all the capital goods installed or put into use, simultaneously at the time of renewal of warehousing licences irrespective of the fact that the capital goods are due for extension or not. The period of extension would be allowed for such a period so that the capital goods need further extension only on the date of renewal of warehousing license.
If the field formations could not understand this Circular in 2005, will they suddenly understand it, if it is extracted into a letter by the Board? Some ease of understanding this!
Board wants its instruction to be strictly followed and no inconvenience be caused to the trade especially EOU/STP/EHTP on account of this issue.