Warehousing is a statutory facility for depositing imported goods in a warehouse pending payment of customs duty. The advantage of the scheme is that the imported goods can be cleared on payment of duty in installments, as and when required during the warehoused period.
Public & Private Warehouse:
A warehouse may be public or private. A public warehouse is appointed and private warehouse licensed by the Commissioner of Customs. The place where a warehouse, public or private is allowed, should, however, be one that has been declared as a warehousing station by the Central Board of Excise and Customs. Public warehouses are managed by public bodies such as the Port Trusts, Central Warehousing Corporation etc. Private warehouses are managed by individual Importers.
Procedure for Warehousing:
An Importer requires (or his Customs House Agent) to file a Bill of Entry for home consumption or for warehousing. If an Importer intends to deposit his consignment in a private or public warehouse he files a Bill of Entry for warehousing in quadruplicate (yellow in color) in the Import Department of the Custom House. The bill of entry is, therefore, also called as, “Into Bond Bill of Entry”.
The period for Warehousing:
The period during which imported goods may remain in the warehouse without payment of duty.
- 5 years – In case of capital goods imported by 100% EOU
- 3 years – In case of non-capital goods imported by 100% EOU
- 1 year- In the case of goods imported by others.
These limits may be extended by the Collector of Customs by 6 months and by the Chief Commissioner for any further period. For all such extended periods, the Importer has to pay the interest.
Control of Warehouse:
Warehoused goods are subject to the control of the Customs Department. The proper officer shall have access to every part of the warehouse and the power to examine the goods therein.
Clearance from Warehouse:
The importer can clear the warehoused goods for home consumption on payment of duty, warehouse rent, interest etc. For this purpose, an Ex-Bond Bill of Entry (Green in Color) is required to be filed.
Cancellation of Bond:
When all the imported goods warehoused have been cleared for home consumption on payment of duty, interest, duty thereon or exported or otherwise duly accounted for, the bond furnished by the importer is canceled and returned to the importer.