Amendment to Ch IX of the Customs Act, 1962 – Insertion of Section 58A – clarification regarding transitional provisions relating to Duty Free Shops/Ship stores/Airline Stores/Diplomatic Stores

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....of Customs, All Principal Commissioners of Customs & Central Excise, All Commissioners of Customs, All Commissioners of Customs & Central Excise. Subject: Amendment to Ch IX of the Customs Act, 1962 - Insertion of Section 58A - clarification regarding transitional provisions relating to Duty Free Shops/Ship stores/Airline Stores/Diplomatic Stores - reg. Sir / Madam, The Finance Act, 2016 has inserted section 58 A in chapter IX of the Customs Act. Section 58 A reads as under: SECTION 58A. Licensing of Special Warehouses - (1) The Principal Commissioner of Customs or Commissioner of Customs may, subject to such conditions as may be prescribed, license a special warehouse wherein dutiable goods may be deposited and s....

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.... does not make an application under Special Warehouse Licensing Regulation, 2016, shall not be permitted to store goods meant for the end use notified at serial no. (2) of notification 66/2016-Cus dated 14.5.2016 beyond the said three months. e. Principal Commissioners / Commissioners are advised that the following time lines may be strictly followed in processing of applications by existing licensees: (i) Application to be received from existing licensees within one month along with the certificate/undertakings mentioned in sub regulation (1) of regulation 3 of the Special Warehouse Licensing Regulations 2016; (ii) Commissioners should process the applications within 15 days of receipt. Since the due diligence of exist....

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.... or change their containers for the purpose of preservation, sale, export or disposal of the goods; (d) deal with the goods and their containers in such manner as may be necessary to prevent loss or deterioration or damage to the goods; (e) show the goods for sale; or (f) ------- 4.2 It may be noted that a duty free shop cannot meet the ingredients of sub-section (2) and (3) of erstwhile section 62 of the Customs Act, or currently, the provisions of section 58 A. Similarly, the provisions contained in erstwhile section 64 or as it now stands, do not permit retail sales from a warehouse.From this it flows that a duty free shop located in a customs area should not be treated as a warehouse. In fact, it is a point....