Customs-Guarded Storage Facility

 

The term "customs warehousing" refers to the process through which products that have been imported are kept in a customs-controlled warehouse without having to pay any import charges. Chapter IX of the Customs Act of 1962 contains the relevant storage requirements. Additional rules, such as the Warehouse (Custody and Handling of Goods) Regulations, 2016, and the Warehoused Goods (Removal) Regulations, 2016, have been drafted to supplement the statutory requirements. Warehouses are storage facilities that take advantage of customs duty exemptions. Warehouse storage of imported goods is exempt from duty payment; duty is due only upon the products' clearance from the warehouse. Chapter IX of the Customs Act of 1962 foresees three distinct kinds of storage facilities: Government-owned storage facilities for private usage and Unique storage facilities In this piece, I'll do my best to describe how a private warehouse handles Manufacturing and Other Operations.

Those who qualify may apply to do business in a Private Bonded Warehouse. A private bonded warehouse license under Section 58 of the Customs Act,1962 is required for any applicant who plans to manufacture or conduct other activities in a bonded warehouse.

A Private Bonded Warehouse License:

Any person who meets the following requirements may apply to the Principal Commissioner of Customs or Commissioner of Customs, as the case may be, for permission to operate a private warehouse:

1. Is an Indian national or an entity incorporated or registered following the laws of India in force at the time of application;

2. Offers an assurance that they would follow any guidelines set out by the Customs Commissioner or Principal Commissioner;

3. presents a certificate of solvency from a scheduled bank in an amount determined by the Chief Commissioner of Customs or the Commissioner of Customs.