WAREHOUSING

Warehouse means:

1. Goods may be deposited in the warehouse on execution of bond²⁹. The amount of bond required to be executed to avail benefit of warehousing provisions is thrice the amount of the duty assessed. The importer is also be required to furnish prescribed security along with bond.
2. The goods deposited in the warehouse may remain for specified time period as under³⁰:

The Principal Commissioner/Commissioner have power to extend the warehousing period upto 1 year at a time. In case the goods are likely to deteriorate, the period of extended period of 1 year may be suitably reduced.

If the warehoused goods are not removed with the prescribed time limit it may be termed as improperly removed and leviable to interest.

3. The owner of the warehoused goods may inspect the goods, sort them, show for sale and deal with containers to minimize the loss of goods. However, such warehoused goods shall not be taken out of warehouse except when they are cleared for home consumption, transferred to another warehouse, exported or removed as per the provisions of the Customs Act. Further, the owner of warehoused goods may carry out manufacture and other operations on such warehoused goods after prior permission of Principal Commissioner of Customs or Commissioner of Customs and subject to prescribed conditions.
4. The warehoused goods can be transferred from one warehouse to another or can be cleared either for home consumption or exports. The importer can remove goods for home consumption on receiving order for clearance after furnishing an ex-bond Bill of Entry in prescribed form and paying import duty, interest, fines and penalties as applicable. Warehoused goods may also be exported directly from warehouse without payment of import duty on receiving export order for clearance after furnishing shipping bill or bill of export along with export duty, interest and penalty as applicable.