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specified in the notification, goods of any class or description from all or any of the provisions from Section 11A to 11.4.15 WAREHOUSING IN CUSTOMS(1) Need for warehousingIf the imported goods are not required immediately, importer may like to store the goods in a warehouse without payment of duty under a bond and then clear from warehouse when required on payment of duty. This will enable him to defer payment of customs duty till goods are actually required by him. In such case, importer can keep goods
Customs Lawl INDIRECT TAXATION212in warehouse without payment of customs duty. Goods are cleared from customs port under bond and kept in the warehouse. The importer can clear goods from customs warehouse on payment of duty when he requires the goods for use/consumption/sale.This facility is available to traders as well as direct importers.A trader can import goods and keep in warehouse. He can supply the goods to buyers from warehouse, after paying customs duty. Thus, small importers, duty free shops etc. can procure goods from bonded warehouse without actually importing the goods.A manufacturer can import inputs without payment of customs duty for manufacture in bond. He will have to export final product which was manufactured using imported duty free material.Even duty free clearances can be made from bonded warehouse, if buyer is otherwise eligible for obtaining goods duty free, as confirmed vide MF(DR) circular No. 79/2000- Cus dated 22-9-2000.(a) Use of warehousing facilityThe facility is useful to direct importers also, in following cases -(a) Importer has to plan his purchases well in advance. He also has to maintain some stocks to ensure that there is no loss of production if a shipment of imported raw materials is delayed. Thus, when the goods arrive in the port, the importer may not immediately require the goods as he may be having stock.(b) Importer would like to store the imported goods without payment of customs duty as far as possible and pay duty only when goods are required for his immediate use, so that his funds are not blocked.(c) The importer may be intending to clear the goods without payment of duty under Advance Licence or DEPB scheme. However, the licence/DEPB may not be in hands when imported goods have arrived at the docks.(d) The importer may not be having adequate ready funds to pay customs duty.(e) Importer can avail facility of manufacture in bonded warehouse and then reexport the final productsWarehousing by traders -Foreign Trade Policy permits keeping imported goods in bonded warehouse without pay-ment of duty. These can be cleared later on payment of duty. Even goods under negative list can be imported by traders and kept in warehouse. These can later be supplied on payment of duty against specific licence.Sale/transfer of warehoused goods -Imported goods kept in warehouse can be transferred to another person as per section 50 of Customs Act. Sale of imported warehoused goods to Duty Exemption or duty concession licence holders is also allowed. In such case, transferee can clear the goods on payment of customs duty, if any, and fulfilling other licensing provisions - CBE&C Circular No. 473 /43/94-LCdated 22-9-1994. (The words ‘if any’, mean that if no duty is