[57. Licensing of public warehouses.—The Principal Commissioner of Customs or Commissioner
of Customs may, subject to such conditions as may be prescribed, licence a public warehouse wherein
dutiable goods may be deposited.]
3
[58. Licensing of private warehouses.—The Principal Commissioner of Customs or Commissioner
of Customs may, subject to such conditions as may be prescribed, licence a private warehouse wherein
dutiable goods imported by or on behalf of the licensee may be deposited.
58A. Licensing of Special warehouses.—(1) The Principal Commissioner of Customs or
Commissioner of Customs may, subject to such conditions as may be prescribed, licence a special
warehouse wherein dutiable goods may be deposited and such warehouse shall be caused to be locked by
the proper officer and no person shall enter the warehouse or remove any goods therefrom without the
permission of the proper officer.
(2) The Board may, by notification in the Official Gazette, specify the class of goods which shall be
deposited in the special warehouse licensed under sub-section (1).
1. Subs. by Act 13 of 2018, s. 56, for ―import manifest‖ (w.e.f. 28-3-2018).
2. Subs. by Act 28 of 2016, s. 124, for section 57 (w.e.f. 14-5-2016).
3. Subs. by s. 125, ibid., for section 58 (w.e.f. 14-5-2016).
56
58B. Cancellation of licence.—(1) Where a licensee contravenes any of the provisions of this Act or
the rules or regulations made thereunder or breaches any of the conditions of the licence, the Principal
Commissioner of Customs or Commissioner of Customs may cancel the licence granted under section 57
or section 58 or section 58A:
Provided that before any licence is cancelled, the licensee shall be given a reasonable opportunity of
being heard.
(2) The Principal Commissioner of Customs or Commissioner of Customs may, without prejudice to
any other action that may be taken against the licensee and the goods under this Act or any other law for the
time being in force, suspend operation of the warehouse during the pendency of an enquiry under
sub-section (1).
(3) Where the operation of a warehouse is suspended under sub-section (2), no goods shall be
deposited in such warehouse during the period of suspension:
Provided that the provisions of this Chapter shall continue to apply to the goods already deposited in
the warehouse.
(4) Where the licence issued under section 57 or section 58 or section 58A is cancelled, the goods
warehoused shall, within seven days from the date on which order of such cancellation is served on the
licensee or within such extended period as the proper officer may allow, be removed from such
warehouse to another warehouse or be cleared for home consumption or export:
Provided that the provisions of this Chapter shall continue to apply to the goods already deposited in
the warehouse till they are removed to another warehouse or cleared for home consumption or for export,
during such period.]
1
[59. Warehousing bond.—The importer of any goods in respect of which a bill of entry for
warehousing has been presented 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 the 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.
1. Subs. by Act 28 of 2016, s. 126, for section 59 (w.e.f. 14-5-2016).
57
(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 continue to be
in force notwithstanding the transfer of the goods to another warehouse.
(5) Where the whole of the goods or any part thereof are transferred to another person, the transferee
shall execute a bond in the manner specified in sub-section (1) or sub-section (2) and furnish security as
specified under sub-section (3).]
59A. [Conditions for warehousing of certain goods.] Omitted by The Finance Act, 1994 (32 of 1994),
s. 60 (w.e.f. 13-5-1994).
1
[60. Permission for removal of goods for deposit in warehouse.—(1) When the provisions of
section 59 have been complied with in respect of any goods, the proper officer may make an order
permitting removal of the goods from a customs station for the purpose of deposit in a warehouse.
2
[Provided that such order may also be made electronically through the customs automated system on
the basis of risk evaluation through appropriate selection criteria.]
(2) Where an order is made under sub-section (1), the goods shall be deposited in a warehouse in such
manner as may be prescribed.]
3
[61. Period for which goods may remain warehoused.—(1) Any warehoused goods may remain
in the warehouse in which they are deposited or in any warehouse to which they may be removed,––
(a) in the case of capital goods intended for use in any hundred per cent. export oriented
undertaking, till the in the case of capital goods intended for use in any hundred per cent. export
oriented undertaking or electronic hardware technology park unit or software technology park unit or
any warehouse wherein manufacture or other operations have been permitted under section 65, till
their clearance from the warehouse;
(b) in the case of goods other than capital goods intended for use in any hundred per cent. export
oriented undertaking or electronic hardware technology park unit or software technology park unit or any
warehouse wherein manufacture or other operations have been permitted under section 65, till their
consumption or clearance from the warehouse; and
(c) in the case of any other goods, till the expiry of one year from the date on which the proper
officer has made an order under sub-section (1) of section 60:
Provided that in the case of any goods referred to in this clause, the Principal Commissioner of
Customs or Commissioner of Customs may, on sufficient cause being shown, extend the period for which
the goods may remain in the warehouse, by not more than one year at a time:
Provided further that where such goods are likely to deteriorate, the period referred to in the first
proviso may be reduced by the Principal Commissioner of Customs or Commissioner of Customs to such
shorter period as he may deem fit.
(2) Where any warehoused goods specified in clause (c) 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;
1. Subs. by Act 28 of 2016, s. 127, for section 60 (w.e.f. 14-5-2016).
2. The proviso ins. by Act 13 of 2018, s. 82 (w.e.f. 28-3-2018).
3. Subs. by Act 28 of 2016, s. 128, for section 61 (w.e.f. 14-5-2016).
58
(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) ―electronic hardware technology park unit‖ means a unit established under the Electronic
Hardware Technology Park Scheme notified by the Government of India;
(ii) ―hundred per cent. export oriented undertaking‖ has the same meaning as in clause (ii) of
Explanation 2 to sub-section (1) of section 3 of the Central Excise Act, 1944 (1 of 1944); and
(iii) ―software technology park unit‖ means a unit established under the Software Technology
Park Scheme notified by the Government of India.]
62. [Control over warehoused goods.] Omitted by The Finance Act, 2016 (28 of 2016), s. 129 (w.e.f.
14-5-2016).
63. [Payment of rent and warehouse charges.] Omitted by s. 129, ibid. (w.e.f. 14-5-2016).
1
[64. Owner’s right to deal with warehoused goods.—The owner of any warehoused goods may,
after warehousing the same,––
(a) inspect the goods;
(b) deal with their containers in such manner as may be necessary to prevent loss or deterioration
or damage to the goods;
(c) sort the goods; or
(d) show the goods for sale.]
65. Manufacture and other operations in relation to goods in a warehouse.—(1) 2
[With the
permission of the Principal Commissioner of Customs or Commissioner of Customs and subject to such
conditions] as may be prescribed, the owner of any warehoused goods may carry on any manufacturing
process or other operations in the warehouse in relation to such goods.
(2) Where in the course of any operations permissible in relation to any warehoused goods under
sub-section (1), there is any waste or refuse, the following provisions shall apply:—
(a) if the whole or any part of the goods resulting from such operations are exported, import duty
shall be remitted on the quantity of the warehoused goods contained in so much of the waste or refuse
as has arisen from the operations carried on in relation to the goods exported:
Provided that such waste or refuse is either destroyed or duty is paid on such waste or refuse as if
it had been imported into India in that form;
(b) if the whole or any part of the goods resulting from such operations are cleared from the
warehouse for home consumption, import duty shall be charged on the quantity of the warehoused
goods contained in so much of the waste or refuse as has arisen from the operations carried on in
relation to the goods cleared for home consumption.
66. Power to exempt imported materials used in the manufacture of goods in warehouse.—If
any imported materials are used in accordance with the provisions 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
1. Subs. by Act 28 of 2016, s. 130, for section 64 (w.e.f. 14-5-2016).
2. Subs. by s. 131, ibid., for certain words (w.e.f. 14-5-2016).
59
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.
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, 1
*** subject
to such conditions as may be prescribed for the due arrival of the warehoused goods at the warehouse to
which removal is permitted.
68. Clearance of warehoused goods for home consumption.—2
[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;
3
[(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 been made by the proper
officer.
4
[
5
[Provided that the order referred to in clause (c) may also be made electronically through the
customs automated system on the basis of risk evaluation through appropriate selection criteria:
Provided further that] the owner of any warehoused goods may, at any time before an order for
clearance of goods for home consumption has been made in respect of such goods, relinquish his title to
the goods upon payment of 6
*** penalties that may be payable in respect of the goods and upon such
relinquishment, he shall not be liable to pay duty thereon:]
7
[
8
[Provided also that] the owner of any such warehoused goods shall not be allowed to relinquish his
title to such goods regarding which an offence appears to have been committed under this Act or any
other law for the time being in force.]
69. Clearance of warehoused goods for 9
[export].—(1) Any warehoused goods may be exported
to a place outside India without payment of import duty if—
10[(a) a shipping bill or a bill of export or the form as prescribed under section 84 has been
presented in respect of such goods;]
11[(b) the export duty, fine and penalties payable in respect of such goods have been paid; and]
(c) an order for clearance of such goods for 9
[export] has been made by the proper officer.
12[Provided that the order referred to in clause (c) may also be made electronically through the
customs automated system on the basis or risk evaluation through appropriate selection criteria.]
(2) Notwithstanding anything contained in sub-section (1), if the Central Government is of opinion
that warehoused goods of any specified description are likely to be smuggled back into India, it may, by
notification in the Official Gazette, direct that such goods shall not be exported to any place outside India
without payment of duty or may be allowed to be so exported subject to such restrictions and conditions
as may be specified in the notification.
70. Allowance in case of volatile goods.—(1) When any warehoused goods to which this section
applies are at the time of delivery from a warehouse found to be deficient in quantity on account of
natural loss, the 13[Assistant Commissioner of Customs or Deputy Commissioner of Customs] may remit
the duty on such deficiency.
1. The words ―without payment of duty‖ omitted by Act 55 of 1991, s. 5 (we.f. 23-12-1991).
2. Subs. by Act 28 of 2016, s. 132, for ―The importer of any warehoused goods may clear them‖ (w.e.f. 14-5-2016).
3. Subs. by s. 132, ibid., for clause (b) (w.e.f. 14-5-2016).
4. Ins. by Act 32 of 2003, s. 114 (w.e.f. 14-5-2003).
5. Subs. by Act 13 of 2018, s. 83, for ―Provided that‖ (w.e.f. 28-3-2018).
6. The words ―rent, interest, other charges and‖ omitted by Act 28 of 2016, s. 132 (w.e.f. 14-5-2016).
7. Ins. by Act 21 of 2006, s. 59 (w.e.f. 18-4-2006).
8. Subs. by Act 13 of 2018, s. 83, for ―Provided further that‖ (w.e.f. 28-3-2018).
9. Subs. by Act 28 of 2016, s. 133, for ―exportation‖ (w.e.f. 14-5-2016).
10. Subs. by Act 7 of 2017, s. 103, for clause (a) (w.e.f. 31-3-2017).
11. Subs. by Act 28 of 2016, s. 133, for clause (b) (w.e.f. 14-5-2016).
12. The proviso ins. by Act 13 of 2018, s. 84 (w.e.f. 28-3-2018).
13. Subs. by Act 27 of 1999, s. 100, for ―Assistant Commissioner of Customs‖ (w.e.f. 11-5-1999).
60
(2) This section applies to such warehoused goods as the Central Government, having regard to the
volatility of the goods and the manner of their storage, may, by notification in the Official Gazette,
specify.
71. Goods not to be taken out of warehouse except as provided by this Act.—No warehoused
goods shall be taken out of a warehouse except on clearance for home consumption or 1
[export], or for
removal to another warehouse, or as otherwise provided by this Act.
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;
2
* * * * *
(d) where any goods in respect of which a bond has been executed under 3
[section 59 4
*** ] and
which have not been cleared for home consumption or 5
[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 6
[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 the warehouse, as
the said officer may 7
[deem fit].
73. Cancellation and return of warehousing bond.—When the whole of the goods covered by any
bond executed under 3
[section 59 4
***] have been cleared for home consumption or exported or
8
[transferred or] are otherwise duly accounted for, and when all amounts due on account of such goods
have been paid, the proper officer shall cancel the bond as discharged in full, and shall on demand deliver
it, so cancelled, to the person who has executed or is entitled to receive it.
9
[73A. Custody and removal of warehoused goods.—(1) All warehoused goods shall remain in the
custody of the person who has been granted a licence under section 57 or section 58 or section 58A until they
are cleared for home consumption or are transferred to another warehouse or are exported or removed as
otherwise provided under this Act.
(2) The responsibilities of the person referred to in sub-section (1) who has custody of the
warehoused goods shall be such as may be prescribed.
(3) Where any warehoused goods are removed in contravention of section 71, the licensee shall be
liable to pay duty, interest, fine and penalties without prejudice to any other action that may be taken
against him under this Act or any other law for the time being in force.]