Security under section 59 (3) of the Customs Act

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....b: Security under section 59 (3) of the Customs Act Section 59 of the Customs Act, 1962 (as amended by Finance Act 2016) requires an importer of goods filing a bill of entry for warehousing to submit a Bond in a sum equal to thrice the amount of duty assessed on the goods to be warehoused. The bond can be: (a) for a single consignment; or (b) a general bond to cover multiple imports by an importer within a specified period. The format of the bonds has been prescribed under circular no. 18/2016 - Cus dated 14.5.2016. 2. Sub-section (3) of section 59 prescribes that the importer, shall, in addition to the execution of a bond, furnish a security. The Board has reviewed the extant circulars regarding furnishing of security for transit as....

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....stoms station of import to the warehouse; or (ii) a warehouse to another warehouse; or (iii) a warehouse to a customs station for export. However, in certain cases, such as, liquid bulk cargo being transported through pipelines, the requirement of transit insurance may be waived. For storage (a) Goods, other than sensitive goods mentioned in para (b) below, permitted to be warehoused, will be subject to the following requirement of security under section 59 (3): (i) for the initial period of one year, there shall be no requirement of furnishing any security; (ii) any extension in warehousing period beyond one year will be subject to the importer or owner furnishing a security by way of a bank guarantee for an amount equivalent to....

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....rnishing a security by way of a bank guarantee for an amount equivalent to the duty involved and interest accrued thereon during the preceding period; (d) However, if the sensitive goods are proposed to be stored in the importer's private bonded warehouse: (i) the importer shall furnish a security by way of a bank guarantee equivalent to the duty involved at the customs station of import before removal of the goods from the customs station of import. The importer shall therefore not require to furnish a transit insurance policy since the transit will be covered under the bank guarantee valid for transit and storage of the goods; (ii) if any sensitive goods are proposed to be removed from a public warehouse to an importer's private bond....