CBEC tweaks warehousing norms for imported goods

Tweaking norms for warehousing, the revenue department has done away with the requirement of furnishing bank guarantee for storing imported goods for one year.
"...For the initial period of one year, there shall be no requirement of furnishing any security," the Central Board of Excise and Customs (CBEC) said.
For storage beyond one year, importer will have to furnish a security by way of a bank guarantee for an amount equivalent to certain percentage of duty plus interest accrued thereon during the preceding period.
CBEC further said that having regard to certain categories of importers/industries with long gestation/ goods of strategic importance, it has decided dispense with the requirement for security.

These include, imports by governments, machinery, equipment and raw-materials imported for manufacture and installation of power generation units; petroleum products; goods warehoused for supply to diplomats; goods for duty free shops; and goods warehoused for supply as ship stores/ airlines stores.
The CBEC also said that henceforth there would be no requirement of payment of interest prior to allowing extensions of warehousing period nor would there be any need to issue a demand for payment of interest.

"Interest, if any, shall be paid at the time of ex-bonding of the goods from the warehouse," it said in a circular.
In a tweet, the CBEC said the circular has relaxed requirement of interest payment prior to extending warehousing period from warehoused goods.

The importer will have to obtain comprehensive transit risk insurance policy to cover the transit of goods, equal in sum to the duty involved on the goods, in favour of the President of India.
However, in certain cases, such as, liquid bulk cargo being transported through pipelines, the requirement of transit insurance may be waived, CBEC added.