TMI BlogWarehousingX X X X Extracts X X X X X X X X Extracts X X X X ..... ct of 100% EOUs, the powers to declare places to be Warehousing Stations have been delegated to the Commissioners of Customs. 3. After the declaration of any place as a Warehousing Station, the Assistant/Deputy Commissioner of Customs, may appoint a Public Bonded Warehouse where imported dutiable goods may be deposited. Under section 58 , the Assistant/Deputy Commissioner of Customs can licence Private Bonded Warehouses where goods imported by or on behalf of the licencee, or other imported goods where facility for Public Warehouse is not available, may be deposited. The following guidelines are generally followed for ensuring uniformity in the practice in the declaration of Warehousing Stations:- i) the industrial development of the proposed area and the need for warehousing of imported goods should be assessed; ii) only those places be notified as warehousing Stations where adequate facilities are available for appointing Public Bonded Warehouses; However, this condition can be relaxed in case of 100% EOUs, subject to use by 100% EOUs only. iii) adequate Customs/Central Excise staff should be available in the vicinity of the proposed Warehousing Stations and necessa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or Private Bonded Warehouses have to abide by all provisions as pertaining to sensitive goods discussed above, except that the requirement of furnishing a Solvency Certificate has been waived. The applicant, however, should be solvent for Rs. 10 lakhs and should possess a good record. A double duty bond with surety would suffice for storage of non-sensitive bonded goods. In case the Customs are not satisfied about the transactions of a particular bonder, the applicant may be asked to furnish a bank guarantee [Details of the guidelines are available under Board's Circular No.99/95 dated 20.9.1995 ]. 6. A licence granted by the Customs under section 58 may be cancelled or suspended under certain conditions after observing the procedure prescribed under section 58 of the Customs Act . Bonding of Import Goods: 7. Where bonding facility is desired on importation, the importer or his representative is required to present to the Customs a Bill of Entry for warehousing (also known as Into-Bond Bill of Entry) in the prescribed form along with relevant documents required. The duties liable are assessed but not required to be paid. A suitable bond has to be executed with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y reduce the one year's period of warehousing to such shorter period as he may deem fit. Rate of Interest on Customs Duty in case of Bonded Goods: 9. In cases where the capital goods for 100% EOUs remain in a warehouse beyond a period of 5 years, interest at the rate of 24% per annum (as applicable currently under notification No.10/2001-Cus.(N.T) dated 1.3.2001 ) shall be charged on the customs duty payable at the time of clearance of the goods for the period from the expiry of the said warehousing period till the date of payment of duty on the warehoused goods. In the case of all other goods, w.e.f 1.6.2001, interest at the rate of 24% per annum is payable after the expiry of thirty days in the warehouse under notification No.23/2001-Cus.(N.T.) dated 22.5.2001 . Waiver of Interest: 10. Under section 61(2) of the Customs Act , if necessary in the public interest, the Board may by order and under circumstances of an exceptional nature to be specified in that order, waive the whole or a part of any interest payable in respect of warehoused goods. In this regard, the power to grant waiver of interest upto an amount of Rs. 15 lakhs has been delegated to the Chie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the time of clearance in the following cases:- i) goods imported by 100% EOUs under notfication No. 13/81-Cus. ii) goods imported by 100% EOUs in EHTPs under various notifications and iii) goods imported by 100% EOUs in STPs under certain notifications. Operations on Warehoused Goods: 11. All warehoused goods are subject to the control of the Customs officers. The owner of the warehoused goods may inspect, sort, show for sale, take samples etc. from the bonded goods with the permission of the proper officer. The owner of the bonded goods shall also pay warehouse-keeper rent and warehouse charges at the rates fixed under law. Manufacture-in-Bond Operations: 12. With the permission of the Assistant/Deputy Commissioner of Customs, the owner of any bonded goods may carry on any manufacturing process or other operations in the bonded warehouse in relation to such goods. As a policy, it has been decided to extend in-bond manufacture facility under section 65 of the Customs Act mainly to EOUs or to units which are primarily engaged in exports. Manufacture-in-bond operations are to be carried out under Customs supervision on cost-recovery basis. Customs may gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not required to be redetermined and it is the original value as determined at the time of filing of into Bond Bill of Entry and assessments before warehousing. Transfer of Bonded Goods: 16. Section 59 (3) of the Customs Act, 1962 provides for the transfer of bonded goods to another person. The sale of the warehoused goods to holders of duty exemption or duty concession license for the goods is permitted under the law (Board's instructions issued from F. No. 473/43/94 dtd. 22.9.1994 refers in this regard). Export of bonded goods: 17. Warehoused goods may also be exported out of India without payment of duty after the filing of a Shipping Bill/Bill of Export and the payment of relevant export duties etc. However, in view of the apprehension that warehoused goods when exported from India to certain neighbouring countries are likely to be smuggled back to India, the Government has directed vide Notification No.45-Cus. dated 1.2.1963 (as amended) that warehoused goods shall not be exported without payment of import duty to any place in Bhutan or Nepal. Similar restrictions are placed in the case of warehoused goods to be exported by land to any place in Myanmar, S ..... 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