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TMI BlogSecurity under section 59 (3) of the Customs ActX X X X Extracts X X X X X X X X Extracts X X X X ..... equal to thrice the amount of duty assessed on the goods to be warehoused. The bond can be: (a) for a single consignment; or (b) a general bond to cover multiple imports by an importer within a specified period. The format of the bonds has been prescribed under Circular no. 18/2016 - cus dated 14.05.2016. 3. Sub-section (3) of section 59 prescribes that the importer, shall, in addition to the execution of a bond, furnish a security. The Board has reviewed the extant circulars regarding furnishing of security for transit as well as for storage of goods in the warehouse. In supersession of earlier instructions, the Board has approved the following: 4. Having regard to certain categories of importers / industries with long gestati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rgo being transported through pipelines, the requirement of transit insurance may be waived. For storage (a) Goods, other than sensitive goods mentioned in para (b) below, permitted to be warehoused, will be subject to the following requirement of security under section 59 (3): (i) for the initial period of one year, there shall be no requirement of furnishing any security; (ii) any extension in warehousing period beyond one year will be subject to the importer or owner furnishing a security by way of a bank guarantee for an amount equivalent to 25% of the sum of duty plus interest accrued thereon during the preceding period; (iii) any extension in warehousing period exceeding two years will be subject to the importer or owner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itive goods are proposed to be stored in the importer's private bonded warehouse: (i) the importer shall furnish a security by way of a bank guarantee equivalent to the duty involved at the customs station of import before removal of the goods from the customs station of import. The importer shall therefore not require to furnish a transit insurance policy since the transit will be covered under the bank guarantee valid for transit and storage of the goods; (ii) if any sensitive goods are proposed to be removed from a public warehouse to an importer's private bonded warehouse, the importer shall furnish a security by way of a bank guarantee, as applicable, at the customs station of import; (iii) If any extension in the peri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. 7.2 However, where the Principal Commissioner or Commissioner of Customs is of the opinion that the goods are likely to deteriorate during the period for which extension is being sought, he can seek a report from the bond officer or ask the importer to produce from an expert in the particular field of relevance to the goods, a report regarding the condition of goods. Before seeking such a report, the Principal Commissioner or Commissioner of Customs may evaluate the following: (i) the nature of goods; (ii) their usual shelf life; (iii) their manner of storage; and (iv) the period for which the goods have already been warehoused. 7.3 In view of the importer providing security and a declaration, such verification should ..... X X X X Extracts X X X X X X X X Extracts X X X X
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