What is customs bonded area in exports and imports

 

The information provided here is part of Guide on howtoexport and import 

 

Customs Bonded Area – It’s meaning and functions

 

 

The term Customs Bonded Area is used in export and import of international trade. This term – Customs Bonded Area – means, the area under customs control where in goods cannot be moved in or out without the permission of customs department.

 

What is customs bonded area in exports and imports? How Customs does bonded area work in Export Import Trade?

 

Customs bonded area means, the cargo enters inward the area and going outward area is under the supervision of customs department. In other words, you cannot move out or move in the bonded area without customs permission. If you want to do any jobs inside the area also is under customs supervision.

 

Now let us discuss about some of the circumstances where customs bonded area is used.

 

Customs Bonded Area at a customs location under regular imports and exports.

 

As you know, any goods moved in to a country and moved out from the country are under the control of government through its agency – Customs Department. So each customs location has a customs bonded area.

The goods for export are moved to this Customs Bonded Area for necessarycustom bonded area its meaning nad function examination and assessment procedures under export customs clearance procedures and formalities of the country. Once after completion of such export customs clearance procedures, customs permits to move goods out of such Customs Bonded Area for export.

 

In an import, all goods importing to a location is moved to a customs bonded area at the customs location first. Once after completion of necessary import customs clearance procedures and formalities, the goods are moved out from such Customs Bonded Area to the importer’s place. In other words, any goods moved in to a country is moved to a customs bonded area first, and such goods can be moved out from customs bonded area only after necessary permission from customs.

 

Customs Bonded Area at an Exporter’s location for units under EOU and STPI.

 

Each unit under 100 percent Export Oriented Unit and unit under STPI have Customs Bonded Area at their location. At the time of obtaining LOP Letter of Permission, each unit of EOU or STPI is allotted an area by customs department after necessary physical inspection and satisfaction. This customs bonded area could be a warehouse also. Any dutiable goods, let the goods be import or domestic which attracts import duty or central excise duty have to be moved to such customs bonded area first.

 

Under exports or local movement like Inter Unit Transfer etc, the unit under EOU or STPI has to take necessary customs permission by following certain documentation procedures and formalities. The necessary examination procedures are followed by customs officials if applicable and permits to move goods out of such Customs Bonded Area.

 

Under imports or local procurement of goods, each Export Oriented Unit or unit under STP has to notify customs department immediately up on such arrival of goods in specified format within a specified period of time of arrival. Necessary Re-Warehousing Certificate procedures have to be completed by each EOU /STP units by completing necessary procedures and formalities specified.

 

Customs Bonded Area in a Customs Bonded Ware House.

 

Under imports, if importer need not take delivery of goods immediately up on its arrival, he can store goods in a Customs Bonded Area. The importer need not pay duty amount on such goods immediately up on import. The importer can pay duty and take out goods as and when he requires. The importer can move goods part by part also as per his convenience. Here, the importer files necessary import documentation for warehousing immediately up on arrival of import goods and arranges to move goods to a customs bonded ware house, which is a customs bonded area. The importer need not pay any import duty amount at that point of time of warehousing. As stated, as and when the importer requires to move imported goods to his place, he pays necessary duty amount to customs and clears the goods either part or full quantity of imports.  Also read How to get export order from foreign buyers?    What is DTA in export import trade?

I hope, I could explain about Customs Bonded Area under exports and imports. If you wish to add more information about Customs Bonded Area in an international trade, please write below.

 

Have you satisfied with this article about Customs Bonded Area under exports and imports? Would you like to share your experience about Customs Bonded Area?

 

Comment below your thoughts about this article – Customs Bonded Area under exports and Imports.

 

  

 

The above information is a part of Online export import training guide 


 

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Comments


Manoj S Shinde: Can you please completely guide on Free Trade Zone (FTZ) and its procedure. It will be very thankful if you reply promptly.

Netra: Can a supplier take a a third party export contract from an Exporter in INR on CFR basis as per Foreign trade policy . If the contract is on CFR basis what is the risk involved ?

Admin: Hello Netra, There are many articles in this website about your doubts. Please read and gain knowledge about procedures to export and import.

Admin: Hello Netra, There are many articles in this website about your doubts. Please read and gain knowledge about procedures to export and import.

Rajinder Garg : Query :- “we regularly transfer the goods to our foreign warehouses under “warehouse sale” and sale these goods from these warehouses. Presently some of the ship are not sold but maximum period of 15 month already been expired”. we found that now these goods not be sold be near future and also want to settled these export bills still outstanding in negotiating bank. 1. if we go for calling back the documents , then we have to ship our material back and surrender all the benefits. 2. If we go for re submission of documents or 3. Closed the documents with zero realization value.

OJAS GOYAL : sir,i am travelling to Europe for study purpose. so what is the limit on various things that i bring in India from there which will be custom free i.e, the limit of product i can carry so that there is no customs applicable.

Arun Gupta : I have a order from my Dubai customer and my supplier from Singapore.. How do I complete this transaction so that I don't incur cost of bringing material in India and keeping at bonded warehouse.

Dave: This information needs to be proof read by someone that speaks english as a first language or has completed upper high school english. Sorry but not short courses or vocational or a computer language converter.

VIKAS GUPTA: i want to know/update on this subject.

Dinesh Salvi: Are goods imported into India but stored in the Customs Area considered to be on Indian territory or are they still considered to be in the country of import till they are cleared out of the Customs Area?

Ahesanali Khatau: We are a planning a 100 percent EOU and have seen your advertisement in Google. Can you send us your contact numbers in order for us to contact you for the services you provide Yours faithfully

Madhu: Thanks for detailed Info on "Customs Bonded Area in Exports and Imports" Taking this article one step further... whats is the procedure for IMPORT and then RE-EXPORT of same Cargo (in full) to another Overseas Customer without moving the Cargo from Bonded area, and without paying import duty of course...? Thanks in advance

RAJENDRAKHATANA: we are the importer and exporter we have imported some materials and kept the same in bonded house now we want to export same material in part can we lift material without paying duty there is any provision or special power to commissioner to allow us to lift the materials without paying duty ,(2) can we shift our import materials in CFS wothout paying duty please let us inform the rule.

mohit : helllo sir i want to export raw cotton can i export that in bonded warehouse if i am trader

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