Warehousing of Imported Goods

Warehousing of Imported Goods

The facility of warehousing of imported goods in Customs Bonded Warehouses, without payment of Customs duty, is permitted under the Customs Act, 1962. In addition to that, the provision of the Warehoused Goods (Removal) Regulations, 1963 and Manufacture and Other Operations in Warehoused Regulations, 1966 are also applicable. Basically, goods after landing are permitted to be removed to a warehouse without payment of duty and duty is collected at the time of clearance from the warehouse. The law lays down the time period upto which the goods may remain in a warehouse, without incurring any interest liability and with interest liability.

Warehousing Stations:

The warehouses are to be appointed/licensed at particular places only which have been so declared by Central Board of Excise and Customs. The Board has delegated its power for declaring places to be Warehousing Stations to the Chief Commissioners of Customs. In respect of 100% EOUs, the powers to declare places to be Warehousing Stations have been delegated to the Commissioners of Customs.

Storage Period of Warehoused Goods:

Any goods deposited in a warehouse may be stored upto a period of one year in the Bonded Warehouse. In the case of capital goods intended for use in any 100% EOU, such goods can, however, be stored up to a period of 5 years. The warehousing period can be extended by the Commissioner of Customs for a of 6 months and by the Chief Commissioner of Customs for such further period as is deemed fit by him. The importers should file their applications for extension well before the expiry of the initial/extended period of warehousing.

Before granting extensions, officers have to examine the condition of the goods to see that they are not likely to deteriorate during the extended period. A somewhat liberal approach in extending warehousing period in the following categories of cases is considered, if the interests of revenue are not likely to be jeopardized:

(a) Goods supplied as ship stores/aircraft stores.

(b) Goods supplied to diplomats.

(c) Goods used in the units operating under manufacture-in-bond scheme.

(d) Goods imported by 100% EOUs.

(e) Goods warehoused and sold through duty free shops.

(f) Machinery, equipment and raw material imported for building and fitment to ships.

Extensions in warehousing period are not meant to be granted routinely but only in such cases where the goods have to be kept in the warehouse under circumstances beyond the control of the importer. Lack of finance to pay the duty is not considered as valid and good ground of seeking extensions which are otherwise given for short period.

In case the warehoused goods are likely to deteriorate, the Commissioner of Customs may 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:

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 shalt 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. In the case of all other goods interest at the rate of 24% per annum is payable after the expiry of thirty days in the warehouse

Recovery of Duty on Bonded Goods:

Customs Officers may demand from the owner of bonded goods the full amount of duty chargeable on such goods, along with all penalties, rent, interest and other charges payable in the following cases:

(a) Where any warehoused goods are removed in contravention of the Customs Act, 1962;

(b) Where such goods have not been removed from a warehouse at the expiry of the period permitted under section 61;

(c) Where any warehoused goods have been taken under section 64 as samples without payment of duty; and

(d) Where any bonded goods have not been cleared for home consumption or exportation or are not duly accounted for to the satisfaction of the Customs.

In case the owner fails to pay the amount as demanded above, Customs may detain and sell, after notice to the owner, such sufficient portion of the bonded goods as may be selected.

Is Received for shipment Bill of Lading sufficient for LC negotiation?

Is Risk Management System (RMS) simplify import? What is RMS in import.

Is sales tax applicable on shipments effected under high sea sales

Is Seaway bill a document of title? What is Seaway bill.

Is THC same in all ports

KINDS OF LOSSES in Marine Insurance

Know the term Port of Discharge and Place of Delivery

LC advantage exporter

LC advantage importer

LC parties

LCL shipment booking tips

Letter of credit

Import General Manifest (IGM)

Importance of Bill of Lading

Introduction to this web site.

Is Airway bill a documents of title?

Is Customs House Agents (CHA ) required to be appointed mandatory?

Is DP terms of payment safe in export business?

Is Letter of Credit LC safe for an Importer?

Is ON BOARD CERTIFICATE required for LC negotiation

Maintain quality of goods - a prime factor in exports

Master collect House collect

How does Letter of Credit work?

How does STP units work in India?

How does TT (Telegraphic Transfer) work?

Master Collect House Prepaid

Master prepaid House collect

Master prepaid house prepaid

Material used for testing is eligible for Modvat

Mode of payments in international trade


MSDS Material Safety Data Sheet

What are the risks and solutions in Export Business? 
Service Tax - Click here to read complete notification under Budget 2014 
What is Bank post shipment credit to exporters? 
Types of export containers 
Measurement of export containers 
Export Import Policy of India 2015-20 
MEIS, Merchandise Exports from India Scheme 
SEIS, Service Exports from India Scheme 
Merge your Commercial Invoice and Packing List for all your future exports 
Export procedures and documentation



Mohan Goswami: How to generate the way bill from computer. Material purchased from Chandigarh to Kolkata.What is the procedure?

THULASI RAMAN K: Please confirm at the time Warehouse Bond extension consignee need to submit BG? What is the percentage

Discussion Forum

You can also share your thoughts about this article.
Any one can answer on question posted by Readers