New licence norms for warehouses supplying duty-free goods

To ensure orderly transition to new licence norms, existing warehouses supplying goods to duty-free shops can continue operations for three months, tax department said today.
The Finance Act, 2016, has inserted a section under which Customs will license a special warehouse for storage of dutiable goods. The warehouse would be locked by the proper officer and no person would enter the warehouse or remove any goods therefrom without the permission of that officer.
CBEC said licensees operating warehouses under earlier norms and storing goods meant for duty free shops/ship stores/ diplomatic stores must apply for a licence under the new norms if they propose to continue to store such goods beyond the transitional period of three months.

"In order to ensure a smooth and orderly transition, existing warehouses engaged in supply of such goods are allowed to continue operations during the transitional period, under customs lock, for a period of three months," said the Central Board of Excise and Customs (CBEC).
CBEC also said a duty free shop located in a customs area should not be treated as a warehouse.
"In fact, it is a point of sale for the goods which are to be ex-bonded and removed from a warehouse for being brought to a DFS in the customs area for sale to eligible persons, namely, international passengers arriving or departing from India," it said.

However, duty-free shop operators storing goods in warehouses in the city or in and around the precinct of the airport qualify to be licensed as bonded warehouses.