SME Chatroom: General bond can be furnished for warehousing imported goods

Business Standard brings you the fortnightly Q&A on SMEs

Q. We import certain goods that we want to keep in a bonded warehouse before clearance on payment of duty in due course. We understand that we are required to furnish a bond for three times the duty involved. Please give us the relevant legal provision and the format of the bond to be furnished. Also, if we want to make it a regular practice, can we furnish a general bond instead of furnishing a bond every time?

In accordance with Section 59(1) of the Customs Act, 1962 an importer is required to execute a triple duty bond at the