27/01/2011 Warehousing and Other Provisions

Other Procedures in Customs Including Warehousing

Exemption Exemption can be granted by Government by issuing a notification.

from customs Capital goods and spares can be imported under ‘project imports’ at
duty and concessional/Nil rate of customs duty.
Project Imports
Remission of Remission can be obtained on goods lost (other than pilferage) in
customs duty port. No remission after goods are cleared from customs.
Pilferage in In case of pilferage, no duty is payable. Pilferage should be before
port order for clearance is made. Duty on pilfered goods is payable by
customs authorities.
Relinquishment Title of imported goods can be relinquished and then no customs
of title of duty will be payable. This is ‘remission on relinquished goods’. Title
imported goods can be relinquished even after imported goods are warehoused.
Abatement if If imported goods are in damaged condition, abatement can be
imported obtained in customs duty.
goods are in
damaged
condition
Re-import of Goods exported can be re-imported. Concessional customs duty is
exported goods payable on such re-imports, but there are some exemptions.
Demand of Demand for recovery of customs duty can be made within 6 months.
customs duty In case of imports by individuals, Government or charitable
institutions, show cause notice for demand can be issued within one
year. Interest is payable for delayed payment of customs duty.
Recovery of Recovery procedures are prescribed in section 142 of Customs Act,
customs duty which has been made applicable to Central Excise also.
Refund of Refund claim for customs duty can be made within 6 months. In
customs duty case of imports by individuals, Government or charitable institutions,
refund claim can be filed within one year. Refund would be subject
to unjust enrichment provisions.
Prohibition of Central Government can prohibit or restrict imports and exports of
imports and goods u/s 11 of Customs Act. Besides, there are restrictions under
exports other Acts like FTDR, Ancient Monument Preservation, Environment
Control Legislation, Hazardous substances, Arms Act etc.
Customs An importer or exporter can transact business of imports and exports
House Agent either himself or through his employees. However, generally, it is not
possible as it requires expertise in procedures. Hence, Customs
House Agent (CHA) is usually appointed by importer/exporter.
Section 146 of Customs Act provide for licence to persons to carry
on business as an agent relating to import or export of goods or
entry/departure of conveyance.
Stores Section 2(38) define ‘Stores’ as goods for use in a vessel or aircraft
and includes diesel and spare parts and other articles of equipment,
whether or not they are required for immediate fitting. The
ships/aircrafts coming from abroad require spares and consumables
for their ships and hence special provisions have been made. Some
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27/01/2011 Warehousing and Other Provisions
stores are exempt from customs duty.

Warehousing in customs

Warehouse to Imported goods can be kept in customs warehouse without

keep imported payment of customs duty. Bond has to be executed while clearing
goods without goods from port to warehouse. Warehouse can be public or private.
payment of
customs duty
Warehousing Goods can be kept in warehouse awaiting receipt of import
pending receipt authorisation or when imported goods are not immediately required
of authorisation for consumption.
Time limit for Goods can be kept in warehouse upto one year, Extension can be
keeping goods obtained. Interest is payable for warehousing beyond 90 days, @
in warehouse 15%.
EOU as EOU is also a ‘warehouse’. Normal warehousing period for them is
warehouse three years for inputs and five years for capital goods. In case of
EOU, interest is payable if warehousing is beyond three years in
case of inputs/consumables/spares and five years in case of
capital goods.
Manufacture in Goods can be manufactured in warehouse and exported without
warehouse payment of customs duty. This facility is useful to EOU.
Clearance from Warehoused goods cane be (a) Cleared on payment of duty (b)
warehouse Cleared for export without payment of duty or (c) transferred to
another warehouse without payment of duty.

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