Capital goods imported by EOUs – Extension of warehousing period
Capital goods imported by EOUs are allowed to be kept in the warehouse (EOU is a warehouse under the Customs Act) for a period of five years, which may be extended by the Commissioner. Board has learnt that that the unit finds it difficult to keep track of this five years limit and often gets into trouble for not applying for the extension. The good Board has reacted positively to this difficulty and decided that the validity of warehoused capital goods will be same as the validity of the warehousing licence, which is also five years. Now, when the warehousing license is renewed, the warehousing period of the capital goods is also extended. But if the capital goods are not put to use within five years, without proper explanation, the unit will be liable to pay duty with interest.
Circular No. , dated 14-2-2005