Interest Rate Cut to 15% from 24% on Goods Warehoused for Export when Cleared to DTA

[CBEC Circular No. 1019 dated 29^th February 2016]

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

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.