Rate of InterestChange in rate of interest on goods warehoused for export, when cleared to DTA

Circular No. 1019/7/2016-CX

F. No. 96/18/2016-CX.I

Government of India Ministry of Finance Department of Revenue

Central Board of Excise & Customs                                                                                    New Delhi, dated the 29th February, 2016

Subject:Change in rate of interest on goods warehoused for export, when cleared to DTA– reg.

Kind attention is invited to Board’s Circular No. 581/18/2001-CX, dated 29.06.2001, specifying conditions, procedures, class of exporters and places under sub-rule (2) of rule 20 of Central Excise (No. 2), Rules, 2001 for Central Excise who can avail facility of export warehousing.

2. Paragraph 10.3 in the said circular deals with liability of interest on goods, warehoused for export, when diverted for home-consumption. In the said paragraph 10.3, for the words, symbols and figures, “interest @ 24% per annum “, the words, symbols and figures, “interest @ 15% per annum “, shall be substituted. The change would bring down the rate of interest to fifteen per cent. per annum.

3. This circular shall come into force on 1.4.2016. Field formations may be suitably informed. Receipt of this Circular may please be acknowledged. Hindi version will follow. (Santosh Kumar Mishra) Under Secretary to the Government of India.

(Santosh Kumar Mishra) Under Secretary to the Government of India