WAREHOUSING

Warehousing is an important part of the international supply chain. Imported goods on importation are deposited in the warehouse without payment of duty after completing the required documentation. These goods can be removed from the warehouse for home consumption as well as for exports after permission of the proper of customs. Importers can import and deposit goods in bulk quantities without payment of duty and thereafter, as per requirement, they can clear for home consumption on payment of duty in smaller lots. Thus, they can save on account of various costs involved in international trade.

As per section 2 of the Customs Act, 1962, warehouse means a Public Bonded warehouse licensed under section 57 or a private warehouse licensed under section 58 or a special warehouse licensed under section 58 A of the Customs Act, 1962 by the Commissioner or Principal Commissioner of Customs

PUBLIC WAREHOUSE

A public bonded warehouse is licensed under section 57 of the Customs Act, 1962. This section provides that 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.

Private Warehouse

A private bonded warehouse is licensed under section 58 of the Customs Act, 1962. This Section provides that 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.

Special Warehouses

Dutiable goods can be deposited. Such warehouse shall be under the lock and key of the proper officer. No person can enter the warehouse or remove any goods there from without the permission of the proper officer.