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emerging-opportunities-in-the-warehousing-industry-inindia/
Emerging Opportunities in the Warehousing Industry
in India
Posted on May 27, 2013by kngtrade
1 Vote
KnG13052701 Dated 27 May 2013
OPPORTUNITIES IN INDIAN WAREHOUSING INDUSTRY
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increased role in the warehousing business (especially farm sector) by way of funding
individuals/groups.
Insurance companies would also have increased business opportunities as
insurance will be an essential requirement before issuing NWRs due to the liabilities
of the warehouseman in the WDR Act.
With a stable NWR system in place, owners of inventory can borrow foreign
currencies for which real interest rates are lower, against inventories of export
commodities, thereby hedging against the foreign exchange risk of foreign
borrowing. This practice is followed in Kenya and Uganda where coffee stocks are
often financed in Pound Sterling.
Reduction in cost of finance and Risk
entrusted to private operators, in line with the existing policy of privatization and
with a view to raising the efficiency of warehousing services, private operators would
now be allowed to be appointed as custodians of the public bonded warehouses. This
relaxation may pave the way for more number of public bonded warehouses coming
up in interior locations where these are needed.
2.2 The concerned Commissioner should, however, ensure that while appointing any
private operator as a custodian for public bonded warehouse, the application
submitted by the latter is very carefully scrutinized and factors such as the feasibility
and financial viability of the warehouse operator, his credibility, his financial status,
his past record to comply with Customs & Excise Laws, his expertise in warehousing
field, etc. should be given due consideration. Besides, operational requirements such
as, suitability and security of the premises, availability of customs expertise,
proximity to the users, etc. are also to be taken into account while appointing the
custodians for the public bonded warehouses. The applicant should agree to take the
services of the customs officers on cost-recovery basis, if the services of the officer are
required on a continuous basis (i.e. 9 AM to 6 PM), or on payment of MOT /
Supervision charges, as the case may be.
3. Private Bonded Warehouse:Furthermore, it has been decided that the requests for grant of licenses for private
bonded warehouses will be considered and decided at the level of the Commissioners
without making any reference to the Board. The private bonded warehouse licences
may be allowed without any restrictions regarding the type of goods to be
warehoused. Hitherto, private bonded warehouse licences were allowed only in
respect of goods which required specialised storage/ handling facilities, e.g., liquid in
bulk, hazardous goods, explosive goods, goods requiring controlled temperature
conditions, etc. From now onwards, irrespective of whether the goods fall in the
above categories or not, the private bonded warehouse licences may be granted. The
existing practice of allowing only industrial raw-materials/ components to be
warehoused in inland areas is also being relaxed. The Commissioners may carefully
scrutinise the applications for grant of privet bonded warehouse licences and if the
applicant is financially sound, has goods credibility, and has not been involved in
custom or excise duty evasion in the preceding 5 years, in the normal course, a
private bonded warehouse licence may be granted. This would, of course, be subject
to the condition that the premises are suitable and adequately secured and the
applicant agrees to take the services of the customs officers on cost-recovery basis, if
the services of the officer are required on a continuous basis (i.e. 9 AM to 6 PM) or on
payment of MOT/ Supervision charges, as the case may be.
4. All pending applications forwarded to the Board with recommendations from the
Consultant, +91-9999005379
Email: jha.sravi@gmail.com