CUSTOMS PORT WAREHOUSING PROCEDURE UNDER CUSTOM

Sec. 59 - Warehousing Bond Sec. 60 - Sec. 67 - Transferred to another Warehouse

1) Importer shall Execute Bond equal to 3 duty Warehousing Transfer to another W/H goods can be transfer from one W/H to
Sec. 46 - along with Security Order another W/H Without payment of ID [Bond Continued]
B/E for Warehousing 2) Bond is for
- to comply provision of the act After execution of Sec. 68 Clearance for Home consumption
- to pay duty & interest bond proper officer
[Goods in custody of Custodian] 1) Filing of ex bond bill of entry
- to pay penalty if any make an order to
30 Days deposit the goods 2) Payment of custom duty and other charges
3) General Bond is allowed on permission of AC/DC
Sec. 48 4) No need to change Bond in case of transfer of in warehouse. 3) Order of clearance for H.C.
goods from one warehouse to another 4) Relinquishment of rights without payment of payment
5) If warehouse goods transferred to another then of import duty
transferee shall execute new bond.
Sec. Direct Export from W/H Without payment of ID
CUSTOMS WAREHOUSE
69 [Commercial Export] [Bond Cancelled and
Public, Private & Special Warehouse + Postal Exports allowed] released]
Point Public (Sec. 57) Private (Sec. 58) Special (Sec. 58A)
Nature of The P.Comm/comm P.Comm/comm P.Comm/comm * Facility of direct export is not allowed in respect of notified goods where
Warehouse may licence public may license any may license Sp. subsequent to export the goods are likely to be smuggled back into India.
Removal
Warehouses Private Warehouse Warehouse
Sec. 70 : Remission of duty on volatile goods
Type of Dutiable Goods Dutiable goods only Notified Dutiable
Goods only goods only Sec 61 - Warehousing Period 1) Goods of volatile nature notified by C.G. (Kerosine, wine, etc.)
2) Goods found to be deficient in quantity because of natural cause
Type of
Licence Public WH are run Private WH are run Special WH 100% EOU Other 3) Remission by AC/DC
Goods & managed by & managed by are run W/Hing period Till Clearance 1 Yrs.
statutory bodies like any person & managed by Int-Free period – 90 Days Sec. 71 : Proper Removal
Port Trust, CWC, etc any person Warehoused goods are said to be properly removed in following cases
Available if goods not
Type of
Control No lock by proper No lock by proper Locked by Extension Available likely to deteriorate, 1) Sec 67 - Transfer to another warehouse
Goods officer officer proper officer 2) Sec 68 - Clearance for Home Consumption
Comment : 1) If no duty at the time of removal then
Sec 65 - Even 'MANUFACTURING OPERATIONS' are allowed in warehouse interest is not payable 3) Sec 69 - Clearance for Export
2) Interest is payable @15% p.a. 4) Any other purpose provided in this Act
Duty on Warehoused Goods (Fabrics) contained in Waste/Refusal
Note: If goods like to deteriorate period can be reduce SC72: Goods Improperly Removed From Warehouse
If Resultant Product If Resultant 1) Clearance other than Sec.67/68/69
(i.e. Shirt) wholly exported Product wholly Sec 64: Owner's Right To Deal With Warehoused 2) Completion of warehousing period
cleared for home Goods
Import Duty on Consumption 3) Removal of sample without permission
Warehoused goods The owner of any warehoused goods may, after 4) Non Accounting of Goods
contained in waste Import Duty is
warehousing the same, Consequences : Owner forthwith pay duty intrest penalty etc.
or refusal shall be Payable on Qty. of (a) inspect the goods. otherwise officer will sell the goods in auction.
remitted subject Warehoused goods (b) deal with their containers in such manner as may be
to condition that contained in waste/refuse
- Such waste / refusal Waste / Refusal necessary to prevent loss or deterioration or Important Case : Kesoram Rayon
(Chindhi) i.e. Import Duty is damage to the goods If goods are not removal within warehousing period or extended period
either destroyed payable as a fabrics
- Duty is paid as a (c) sort the goods or then goods are deemed to be removed on date of completion of
on 200m
Waste / refuse imported into India (d) show the goods for sale. warehousing period and rate prevailing on such date will be applicable.