9911796707
TMI BlogWarehousingX X X X Extracts X X X X X X X X Extracts X X X X ..... ustoms duty is permitted in terms of Chapter IX of the Customs Act, 1962. Further, where necessary the Manufacture and Other Operations in Warehouse Regulations, 1966 provide the procedure to be followed for manufacture under bond. On their part, Warehoused Goods (Removal) Regulations, 1963 provide the procedure for movement of the goods from one warehouse to another. 3. Warehousing Stations: 3.1 Public or Private bonded warehouses can be operated only at places which are declared as warehousing stations under Section 9 of the Customs Act, 1962. This also applies to the operations in Customs bonded warehouses like EOU/EHTP/STP units. 3.2 As per provisions of Section 9 of the Customs Act, 1962, Board may declare places as warehousing stations at which alone public warehouses may be appointed and private warehouses may be licensed. Board has vide Notification No. 34/94 (NT)- Cus, dated 1-7-1994 delegated these powers to the Chief Commissioners of Customs or Chief Commissioners of Customs and Central Excise, as the case may be. Also, in respect of setting up of EOUs, the powers for declaring places as warehousing stations have been delegated to the jurisdictional Commissioner of Cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vertime/Supervision Charges, as the case may be Licensing of Private Warehouses. 5. Appointment of Private Warehouses: 5.1 As per Section 58 of the Customs Act, 1962, at any warehousing station, the Assistant Commissioner of Customs or Deputy Commissioner of Customs may license private warehouses for depositing without payment of duty following types of goods: (i) Dutiable goods imported by the licencee; or (ii) Dutiable goods imported on behalf of the licensee; or (iii) Any other goods imported by other importers in respect of which specialized storing / handling facilities are required and such specialized storing /handling facilities for deposit are not available in a public warehouse. The specialized facilities are like liquids in bulk, hazardous goods, explosive goods, goods requiring controlled temperature conditions etc. 5.2 The main conditions for granting Private Bonded Warehouse licences are: (i) The applicant is financially sound and credible and the proprietor or partner or any of the Directors have not been involved in any Customs or Central Excise duty evasion cases or smuggling offences and have not been subject to penalty or other action under the Customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er Section 59 of the Customs Act, 1962 shall be sufficient for bonding of non-sensitive goods without a cash deposit/bank guarantee. However, if concerned Assistant/Deputy Commissioner of Customs is not satisfied about the transactions of a particular licencee, a suitable bank guarantee may be obtained. (c) As a measure of relaxation to the Central/State Government Undertakings, all Central and State Public Sector Undertakings shall be exempt from furnishing Bank guarantee or other form of security for storing sensitive goods in the duty free shops operated by them. The execution of a double duty bond and other requirements would, however, remain. [Refer Circulars No. 99/95-Cus, dated 20-9-1995, No.20/96-Cus, dated 4-4-1996, No. 13/02-Cus., dated 22-2-2002, No. 34/02-Cus., dated 26-6-2002, No.18/2007-Cus, dated 24-4-2007 and No. 26/2012 dated 10-09-2012] 7. Cancellation/suspension of licences for Private Bonded Warehouses: 7.1 Section 58(2) of the Customs Act, 1962 provides that the Assistant/Deputy Commissioner of Customs may cancel a license, if the licensee has contravened any of the provisions of the said Act or the rules or regulations or committed breach of any of the co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declared description with distinctive identification marks of the subject goods. 10. Period for which goods may remain warehoused: 10.1 As per section 61 of the Customs Act, 1962, the warehousing period of goods deposited in a warehouse or in any other warehouse to which they may be removed, is as under: (i) Capital goods intended for use in any EOU, may be kept for five years; (ii) Goods other than the capital goods intended for use in any EOU, may be kept for three years; (iii) Any other goods may be kept for one year. However, if the goods are likely to deteriorate, the period of one year may be reduced by the Commissioner of Customs to such shorter period as he may deem fit: 11. Extension of warehousing period: 11.1 In the case of any goods which are not likely to deteriorate, the warehousing period, on sufficient cause being shown, be extended- (i) In the case of such goods intended for use in any EOU, by the Commissioner of Customs, for such period as he may deem fit; (ii) In any other case, by the Commissioner of customs, for a period not exceeding six months and by the Chief Commissioner of Customs for such further period as he may deem fit. 11.2 The extensi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... possible, be filed prior to 15 days of expiry of the warehousing period. All such requests should normally be decided by the Customs within this period. The requests for grant of extension of warehousing period can be considered after the expiry of initial or extended period of warehousing, after taking into consideration the exceptional circumstances of the cases, nature of commodity, rate of duties, particularly, whether the same could result in loss of revenue to Government, licencing aspects involved etc. (viii) In case an importer makes a request to permit re-export of the goods under Section 69 of the Customs Act, 1962, the same may be allowed even if the permitted period for bonding has expired and demand notice issued under Section 72, or it has been decided to put the goods under auction. Before permitting re-export, however, it will be necessary to extend the period of warehousing under Section 61 of the Customs Act, 1962 to enable the importer to export the goods within the permitted period of warehousing. Chief Commissioners would consider/decide such requests from the importers taking into consideration all the relevant rules/ regulations for export. [Refer Circula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the duty within 2 working days from the date on which such Bill of Entry is returned to him for payment of duty are not attracted in case of clearances made under Section 68 of the Act ibid. 13. Waiver of interest: 13.1 As per Section 61(2) of the Customs Act, 1962, Board may, in exceptional cases, waive the whole or part of any interest payable in respect of any warehoused goods. Board may also by a notification, specify the class of goods in respect of which no interest shall be charged. Accordingly, the interest on warehoused goods imported by EOUs/EHTP/STP units is exempt vide Notification No. 67/95-Cus.(NT), dated 1-11-1995. 13.2 The powers of waiver of interest on Customs duty warehoused goods upto a limit of ₹ 2 crores have been delegated by the Board to the Chief Commissioners of Customs and Central Excise vide Notification No.122/2004-Cus.(NT), dated 25-10- 2004. All requests for waiver of interest on Customs duty on warehoused goods are to be received at the Commissionerates and where amount of interest is not within the delegated powers of Chief Commissioner of Customs, forwarded to the Board with comments for consideration. 13.3 Guidelines have been laid dow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ouse to be locked with the lock of the Customs Department and no person shall remove or break such lock. 14.3 The proper officer shall have access to every part of a warehouse and power to examine the goods therein. 15. Payment of rent and warehouse charges: 15.1 The owner of any warehoused goods shall pay to the warehouse-keeper rent and warehouse charges at the rates fixed under any law for the time being in force or where no rates are so fixed, at such rates as may be fixed by the Commissioner of Customs. 15.2 If any rent or warehouse charges are not paid within ten days from the date when they became due, the warehouse-keeper may, after notice to the owner of the warehoused goods and with the permission of the proper officer cause to be sold (any transfer of the warehoused goods notwithstanding) such sufficient portion of the goods as the warehouse-keeper may select. 16. Owner's right to deal with warehoused goods: 16.1 With the sanction of the proper officer and on payment of the prescribed fees, the owner of any goods may either before or after warehousing the same: (i) inspect the goods; (ii) Separate damaged or deteriorated goods from the rest; (iii) Sort th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facturing process or other operations or imported and other goods as may be specified by Assistant/Deputy Commissioner of Customs; (v) Pay all the charges including pay, allowances, leave and pensionary charges of such officers as may from time to time be posted by the Assistant/Deputy Commissioner of Customs in the warehouse for supervision and control of the manufacturing process or other operations, or imported and other goods; and (vi) Comply with such conditions as may be imposed by the D.C./A.C. of Customs from time to time for carrying out the purposes of Manufacture & Other Operations in Warehouse Regulations, 1966 and the Act. 17.4 After execution of the bond, Assistant/Deputy Commissioner of Customs shall accord sanction to the applicant to carry on such manufacturing process or other operations. He should specify the following aspects in the permission: (i) The manufacturing process or other operations to be carried on; (ii) The types and nature of imported and other goods permitted to be used; (iii) The period for which the sanction is valid; (iv) The conditions, if any, subject to which the manufacturing process or other operations may be carried on; (v) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he following modes: (i) If goods manufactured in bond are exported, import duty on the quantity of the warehoused goods contained in the waste or refuse shall be remitted provided that: (a) Such waste or refuse is either destroyed; or (b) Duty is paid on such waste or refuse as if it had been imported into India in that form. (ii) If goods manufactured in bond are cleared from the warehouse for home consumption, import duty shall be charged on the quantity of the warehoused goods contained in so much of the waste or refuse as has arisen from the operations carried on in relation to the goods cleared for home consumption. 18. Transfer of goods from one warehouse to another: 18.1 As per provisions of Section 67 of the Customs Act, 1962, the owner of any warehoused goods may, with the permission of the proper officer, remove the warehoused goods from one warehouse to another warehouse. The procedure as per Warehoused Goods (Removal) Regulations, 1963 is to be followed for removal of goods from one warehouse to another warehouse. The procedure for removal of goods is as per Warehoused Goods (Removal) Regulations, 1963 and the following guidelines apply: (i) As per Regulatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hs, the action for recovery shall be taken by enforcing the terms of the transit bond or encashment of bank guarantee. 19. Clearance of warehoused goods for home consumption: 19.1 The importer of any warehoused goods may clear them for home consumption after filing an ex-bond (Green) Bill of Entry for home consumption and payment of the import duty leviable on such goods alongwith penalties, rent, interest and other charges, if any. 19.2 At the time of actual removal of the goods from the warehouse, the declared description of the goods recorded on warehousing bill of entry, should be tallied with the description declared on the ex-bond (Green) bill of entry. 19.3 As per provisions of Section 15 of the Customs Act, 1962, the rate of duty and tariff value for clearance of the goods from a bonded warehouse shall be the rate of duty and tariff value on the date on which a Bill of Entry for home consumption is presented under Section 68 of the Customs Act, 1962. The value of the goods is taken as the same as assessed on the into-bond Bill of Entry at the time of warehousing the goods. 19.4 The following procedure had been prescribed for clearance of warehoused goods: (i) Bills o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bet or Sinkiang, However, the warehoused goods can be exported to Nepal in the following circumstances: (a) If goods are exported against an irrevocable letter of credit in freely convertible currency; (b) If goods are exported for supplies to projects financed by any UN Agency or IBRD Association or ADB or any other multilateral agency of the like nature and for which payments are received in freely convertible currency; and (c) If the specified capital goods are supplied against a global tender invited by HMG of Nepal for which payment is received in Indian Rupees. These goods can be exported only from Jogbani or Raxaul LCS on production of bank certifies of receipt of the payment in freely convertible currency or Indian Rupees, as the case may be. (ii) As per Notification No.46-Cus, dated 1-2-1963, export of warehoused goods without payment of import duty in a vessel of capacity less than 1000 tons gross is permitted subject to the condition that the exporter or agent of the vessel executes a bond for an amount equal to the import duty leviable on such goods backed by surety or security and produces a certificate within 3 months from the Customs authorities at port of de ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
