TaxTMI 
TaxTMI 
TaxTMI 
Clarifications on Customs notifications issued after enactment - Finance Act, 2016
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....al) Regulations, 1963]. 2. Furthermore, bonds required to be obtained from importer under section 59 have been prescribed under circular no. 18/2016 dated 14th May 2016 to replace the bonds earlier prescribed under Board's Circular F. No. 473/82/78-Cus. VII, dated 20th April 1978. 3. Also, with the supersession of the Warehoused Goods (Removal) Regulations, 1963 the system of physical escorting of goods within the same town has been dispensed for movement of goods from one warehouse to another. Escorting will also not be required for movement of goods from a warehouse to a customs station for export. These movements would be done by affixation of a one-time-lock. Instructions have been issued under Board's circular no. 17/2016, dated 14th May 2016 regarding removal of goods from a customs station to a warehouse, which also require that the container or means of transport be affixed with a serially numbered one-time-lock (bottle seal). 4. It may be noted that the regulations on licensing of different types of warehouses contain transitional provisions to enable the warehouses to switch over to record based control in a smooth and orderly manner. The provisions requ....
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....ecords. Warehouse keepers may be encouraged to acquire I.T. capabilities for inventory management at the earliest. 8. Changes explained above are not intended to be exhaustive and are meant only to draw attention to major amendments and new regulations. The sections 57 to 73A and the regulations may kindly be read carefully. In order to familiarize officers and trade with the provisions of the new regulations, it is requested that interactive sessions may be planned by the Commissioners/Principal Commissioners/Chief Commissioners. With kind regards, Yours sincerely, (S. Kumar) Commissioner (Customs) Enclosure Chapter IX WAREHOUSING Section 57. Licensing of public warehouses. - The Principal Commissioner of Customs or Commissioner of Customs may, subject to such conditions as may be prescribed, license a public warehouse wherein dutiable goods may be deposited. Section 58. Licensing of private warehouses. - The Principal Commissioner of Customs or Commissioner of Customs may, subject to such conditions as may be prescribed, license a private warehouse wherein dutiable goods imported by or on behalf of the licensee may be deposited. Section 58A. Licensi....
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....ted under section 46 and assessed to duty under section 17 or section 18 shall execute a bond in a sum equal to thrice the amount of the duty assessed on such goods, binding himself - (a) to comply with all the provisions of the Act, and the rules and regulations made thereunder in respect of such goods; (b) to pay on or before the date specified in the notice of demand, all duties and interest payable under sub-section (2) of section 61; and (c) to pay all penalties and fines incurred for contravention of the provisions of this Act or the rules or regulations in respect of such goods. (2) For the purposes of sub-section (1), the Assistant Commissioner of Customs or Deputy Commissioner of Customs may permit an importer to execute a general bond in such amount as the Assistant Commissioner of Customs or Deputy Commissioner of Customs may approve in respect of the warehousing of goods to be imported by him within a specified period. (3) The importer shall, in addition to the execution of a bond under sub-section (1) or sub-section (2), furnish such security as may be prescribed. (4) Any bond executed under this section by an importer in respect of any goods shall....
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....) of sub-section (1), remain in a warehouse beyond a period of ninety days from the date on which the proper officer has made an order under sub-section (1) of section 60, interest shall be payable at such rate as may be fixed by the Central Government under section 47, on the amount of duty payable at the time of clearance of the goods, for the period from the expiry of the said ninety days till the date of payment of duty on the warehoused goods : Provided that if the Board considers it necessary so to do, in the public interest, it may, - (a) by order and under the circumstances of an exceptional nature, to be specified in such order, waive the whole or any part of the interest payable under this section in respect of any warehoused goods; (b) by notification in the Official Gazette, specify the class of goods in respect of which no interest shall be charged under this section; (c) by notification in the Official Gazette, specify the class of goods in respect of which the interest shall be chargeable from the date on which the proper officer has made an order under sub-section (1) of section 60. Explanation. - For the purposes of this section - (i) "electron....
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....visions of section 65 for the manufacture of any goods and the rate of duty leviable on the imported materials exceeds the rate of duty leviable on such goods, the Central Government, if satisfied that in the interests of the establishment or development of any domestic industry it is necessary so to do, may, by notification in the Official Gazette, exempt the imported materials from the whole or part of the excess rate of duty. Section 67. Removal of goods from one warehouse to another. - The owner of any warehoused goods may, with the permission of the proper officer, remove them from one warehouse to another, subject to such conditions as may be prescribed for the due arrival of the warehoused goods at the warehouse to which removal is permitted. Section 68. Clearance of warehoused goods for home consumption. - Any warehoused goods may be cleared from the warehouse for home consumption, if - (a) a bill of entry for home consumption in respect of such goods has been presented in the prescribed form; (b) the import duty, interest, fine and penalties payable in respect of such goods have been paid; and (c) an order for clearance of such goods for home consumption has....
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....r warehouse, or as otherwise provided by this Act. Section 72. Goods improperly removed from warehouse, etc. - (1) In any of the following cases, that is to say, - (a) where any warehoused goods are removed from a warehouse in contravention of section 71; (b) where any warehoused goods have not been removed from a warehouse at the expiration of the period during which such goods are permitted under section 61 to remain in a warehouse; (c) omitted; (d) where any warehoused goods in respect of which a bond has been executed under section 59 and which have not been cleared for home consumption or export or are not duly accounted for to the satisfaction of the proper officer, the proper officer may demand, and the owner of such goods shall forthwith pay, the full amount of duty chargeable on account of such goods together with interest, fine and penalties payable in respect of such goods. (2) If any owner fails to pay any amount demanded under sub-section (1), the proper officer may, without prejudice to any other remedy, cause to be detained and sold, after notice to the owner (any transfer of the goods notwithstanding) such sufficient portion of his goods, if any, in....