The importers who do not intend clearing the imported goods for "home consumption" straightaway, may choose to warehouse the goods i.e. store the goods under customs control or custody, and clear the same subsequently either wholly or in part, in piecemeal, on payment of customs duty due.
Warehouse could be appointed or licensed as 'public' under section 57 of the customs act or a 'private' under section 58 of the act. Only those places are called warehouses that are declared by the Central board of Excise and Customs to be 'warehousing stations' by means of notification in the official gazette.
Period for which goods may remain warehoused
In case of capital goods intended for use in any hundred per cent export oriented undertaking, can remain warehoused for a maximum of five years (interest free). In the case of other goods, it can remain warehoused for a period of one year (interest free). These provisions do not apply on goods which are likely to deteriorate. If the goods are likely to deteriorate, then the aforesaid period of one year may be reduced by the collector of customs to such shorter period as he may deem fit. The time period may be increased for a period of six months by the Collector of customs and by the Principal Collector for such further period as he may deem fit in case of non deteriorating goods. If the goods remain in the warehouse for a period more than that specified, then interest at rate as provided in section 47 has to be paid.
When the licence for any private warehouse is cancelled, the owner of any goods warehoused therein shall, within seven days from the date on which notice of such cancellation is given or which such extended period as the proper officer may allow, remove the goods from such warehouse to another warehouse or clear them for home consumption or exportation.
Private Bonded Warehouses for Exports
Private bonded warehouse exclusively for exports may be set up in DTA as per the terms and conditions of the notifications issued by Department of Revenue. Such warehouse shall be entitled to procure the goods from domestic manufacturers without payment of duty. The supplies made by the domestic supplier to the notified warehouses shall be treated as physical exports provided the payments for the same are made in free foreign exchange.
ASCC Service Offering:
ASCC will liaise with Customs Department to help you with bonding of warehouse.