Warehousing - Waiver of interest on the Customs duty - Delegation of Board's powers to principal collectors - Customs - F. No. 475/82/92-LC

Warehousing - Waiver of interest on the Customs duty - Delegation of Board's powers to principal collectors F. No. 475/82/92-LC Dated 10-2-1994 Government of India Central Board of Excise Customs New Delhi Subject : Warehousing - Waiver of interest on the customs duty - Delegation of Board's powers to Principal Collectors - Reg. Reference correspondence resting with the Board's instructions of even number dated 27-12-1993 on the subject mentioned above and to say that in para 3 of the said instructions it has been stated that in respect of goods imported by 100% EOUs waiver of interest shall be considered on completion of the export obligation period. It has, however, been observed by the Board that certain 100% EOUs do not fulfil their export obligation and are allowed pre-mature debonding by the competent authority (SIA). Since waiver of interest is considered based on the principle that the imported goods are ab-initio not cleared/intended to be cleared for home-consumption on payment of duty and are meant for export out of India, in the circumstances where the unit was pre-maturely debonded without going into production or without export, the Board has decided that in such cases, interest waiver does not merit consideration. Only in very exceptional circumstances the interest waiver would be considered in such cases. You are, therefore, requested that the above decision may be kept in mind while deciding the cases for waiver of interest in respect of goods imported by 100% EOUs.