Public Notice No. 118/2001
Import Supply No. 61/2001
Export Supply No. 61/2001
PUBLIC NOTICE NO. 118/2001 Date: 24/10/2001.
SUB:- Applicability of interest on bonded goods – Clarification – Regarding.
Attention of all Importers, Bonders, CHAs., and others concerned is invited to this Custom House Public Notice No. 69/2001 dated 31st may, 2001, regarding charging of interest, on warehoused goods.
2. It was informed vide said Public Notice that Section 61 of the Customs Act, 1962 has been amended by Section 106 of the Finance Act, 2001, with the objective of enabling the Government to charge interest on warehoused goods, under clause (ii) of Sub-Section (2) of Section 61 beyond a period of 30 days, This amendment is effective from 1st day of June, 2001, vide Notification No. 23/2001 -CUS(N.T.), dated 22/05/2001. Consequently, w.e.f. 1st day of June 2001, goods lying in bonded warehouse, above thirty days shall be chargeable to Customs duty + interest @ 24% per annum + other charges, as applicable.
3. With a view to remove any doubts in the matter, it is further clarified that consequent to the said amendment in Section 61 of the Customs Act, 1962, with effect from 01/06/2001, interest @ 24% per annum on Customs duty shall be chargeable on all goods, which retained in bonded warehouse above thirty days, as on 01/06/2001. Interest free period of thirty days shall be applicable to goods warehoused prior to 01/06/2001, but only till expiry of thirty days or 01/06/2001, whichever is later. If the goods have already remained in bonded warehouse for more than thirty days as on 01/06/2001, interest @ 24% per annum shall be applicable w.e.f. 01/06/2001. The following examples are cited below, in this regard, for sake of clarification and easy reference:-
(i) In case, the goods are warehoused on or before 02/05/2001, the interest-free period of thirty days will expire on 31/05/2001 and therefore interest @ 24% per annum will be applicable from 01/06/2001.
(ii) In case, the goods are warehoused on 15/05/2001, the interest-free period of thirty days will expire on 13/06/2001 and therefore interest @ 24% per annum will be applicable after expiry of thirty days i.e. from 14/06/2001.
4. The aforesaid clarification may be brought to the notice of all concerned, for their information and necessary compliance.
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