WAREHOUSING OF IMPORTED GOODS

Sec 58 (2)
License may be cancelled:-  Only DUTIABLE GOODS can be stored in Customs Warehouse.
i) By Giving 1 Mth Notice
ii) In case of contravention of Act/Rules (Opportunity of DUTIABLE GOODS [Sec 2(14)] : Any goods which are chargeable to duty & on which duty has not been paid.
Being Heard shall, however, be granted)
(It shall be noted – Goods must be dutiable (chargeable to duty) at the time of their insertion/deposit in the Warehouse. ---
Sec 58 (3) Subsequent exemption from duty (at time of their clearance from the factory) is not relevant in this regard)
Pending Cancellation: License may be suspended
 W/Hing = B/E for W/Hing (Yellow Colour – u/s 46) + Execution of Bond (Sec 59) + W/Hing Order (Sec 60)
Appointed by AC/DC Licensed by AC/DC
[Sec 57] [Sec 58(1)]  However, if goods reached the warehouse, without following ALL or ANY of the following conditions,
then it is called WAREHOUSING WITHOUT WAREHOUSING.
Public W/H Private W/H 3 Situations:
i) Proviso to Sec 46(1): Inability of importer to file any B/E (whether for H/C or for W/Hing) – due to non-
availability of full information --- Goods may be allowed to deposited in PUBLIC W/H
WAREHOUSE ii) Sec 49: B/E for H/C filed by importer –inability to clear the goods within a reasonable time – Goods
[Sec 2(43) – Refer Note Below] may be allowed to be deposited in Warehouse (Public W/H or Private W/H) (Such goods may be dutiable
or non-dutiable)
WareHoused Goods
iii) Sec 85: B/E filed for W/Hing – Importer submitting a declaration that these are to be supplied as Stores
[Sec 2(44)]
= Goods Deposited in a Warehouse – without payment of duty (i.e., to Foreign Going Vessel/Aircraft or Ship of Indian Navy) --- such stores
may be warehoused without assessment of duty thereon (i.e., No Bond Execution).

 Sec 2(45): Warehousing Station means a place declared
as Warehousing Station u/s 9.
Sec 9 authorises CBEC to declare W/Hing Station (It is
only at W/Hing Station – that Public W/H may be
appointed or Private W/H may be licensed)
 Sec 2(44): -- Warehouse means:
o A Public Warehouse as appointed u/s 57; or
o A private warehouse as licensed u/s 58
These are also Known as “Customs Warehouse” or “Bonded
Warehouse”
 WAREHOUSING BOND [Sec 59] = (2 * Duty Assessed thereon)
(Tentative Assessment: Based upon RoD & AV – as prevailing on the date
of filing of Bill of Entry for Warehousing u/s 46)
Undertaking as to :
a) Observing all the provisions of Customs Act + Rules + Regulations
b) Payment (within the demand period) of
--- DUTY & W/Hing INTEREST (u/s 61(2))
--- W/H ing RENT & CHARGES (alongwith Interest thereon u/s 63(2))
c) Discharge ALL PENALTIES
 General Bond (consolidated bond for goods expected to be imported within a specified period) --- AO may allow
it to be executed.
 Bond Executed by Importer – Goods Warehoused --- Goods sold to another person --- Bond Executed
by Importer (seller) shall remain in force notwithstanding such sale/transfer
But if the Buyer gives a FRESH Bond i.r.o. goods sold to him by the importer – Bond executed by Importer
shall remain in force only for balance amount [Original Amount of Bond – Amount of Fresh Bond]
 Public W/H Private W/H
[Sec 57] [Sec 58] Sec 73 Where whole of the W/Hed goods have been cleared + All
AMOUNTS thereon have been paid
--- PO shall cancel Bond (discharged in full)
(If the importer demands such cancelled bond – it shall be deliver to him)
WAREHOUSE
Bill of Entry for W/Hing PROPER REMOVAL (Sec 71)
W/Hing Bond Goods not to be removed from W/H except as follows:
(u/s 46) [u/s 59] W/Hing
WAREHOUSED GOODS
Order
[u/s 60]
Volatile Goods –
Date of Filing = loss due to Transfer to Clearance Clearance For Export Otherwise
Relevant Date for Natural Another W/H For H/C (Sec 69) Permissible
Determination of Rate Reasons- Sec 70 (Sec 67) (Sec 68) manner
of Exchange [Sec 14(1)] (i.e., taking of samples
without payment of duty)

(On payment of Fees
+ Sanction of AC/DC)
Owner’s Right
i) Inspection of Goods
ii) Separation of damaged/ deteriorated
goods
iii) Otherwise dealing with goods to
prevent damage/deterioration
iv) Sorting of goods / Changing
Containers
v) Showing them for sale:
vi) Taking samples of such goods;
Rights of PO Sec 62 Control over W/Hed Goods
[All such goods – subject to
control of PO] - [No entry
/removal of goods without his
permission] --- [W/H to be locked
with Customs’ lock] – [PO has
power to examine goods]
Rights of Sec 63 Pymt of Rent + W/Hing
W/H Keeper Charges -- As per rates fixed
under Respective Act or As Fixed
by CC --- Non-payment within
10 days of due dates –
Rights of Proportionate goods may be sold]
Owner of Goods
Sec 64 Owner’s Right thereon
Sec 65 Manufacturing under W/H
Sec 66 (Not relevant)
Permission 3 conditions: (1) Clearance allowed WITHOUT
of PO i) B/E for H/C (Green Colour) PAYMENT OF IMPORT DUTY
(conditions has been filed subject to 3 conditions:
i) Shipping Bill / Bill of Export
as to their ii) Import Duty + Rent +
has been filed
due arrival Other Charges + Interest + ii) Export Duty (if any) + Rent +
in another penalties have been paid Other Charges + Interest +
W/H shall iii)Clearance order has been penalties have been paid
be complied issued by PO iii) Clearance order has been
with) issued by PO
Proviso:
(2) Goods likely to be smuggled back
Before passing of Clearance Order :--
into India – CG may (by Not. In OZ)
- Importer may relinquish his title to
goods direct that:
Then, he shall not be liable to pay --- Clearance without duty payment
DUTY. (Title may be relinquished only upon not permissible
payment of W/Hing Dues (i.e., Rent, Charges, --- Clearance is permissible only
Penalties & Interest)
subject to fulfillment of specified
If goods in respect of which conditions or restrictions
relinquishment application is made, are
those in relation to which an appears to
have been committed, then
relinquishment shall not be allowed.
Sec 15(1)(b) : Relevant date for
determination of AV & RoD = Date of filing of
B/E for H/C u/s 68