Private/Public Bonded Warehouse for Diamonds/Coloured Gemstones under Para 8.13 of Exim Policy 1997-2002 - Clarification regarding - Customs - 047/99

F.No.305/94/98-FTT Circular No. 47/99-Cus dated 27/7/1999 Government of India Ministry of Finance Department of Revenue Central Board of Excise Customs, New Delhi Subject : Private/Public Bonded Warehouse for Diamonds/Coloured Gemstones under Para 8.13 of Exim Policy 1997-2002 - Clarification regarding. A point has been raised as to whether the facility of Private Bonded Warehouses as envisaged under Para 8.13 of Exim Policy 1997-2002 is to be provided only to the holders of Bulk Licences under Para 8.10 of said Policy or to any other exporter. 2. The matter has been examined in consultation with the Ministry of Commerce. It has been clarified by the Ministry of Commerce that there is no need for drawing an analogy between the provision of Bulk Licences (Para 8.10) and Private Bonded Warehouses (Para 8.13) because, the Bulk Licences, issued under Para 8.10 of the Exim Policy, are for the import of only rough diamonds from any source with an obligation to supply the same to the holders of valid REP/Diamond Imprest licence, EOU/EPZ units or to re-export the same whereas the licences for Private/Public Bonded WAREhouses under Para 8.13 of the said Policy are issued for import and re-export of cut polished diamonds, cut polished coloured gemstones, import and re-export of rough diamonds, uncut unset precious stones. The objectives of both the Schemes are thus different. While Bulk Licences are meant for ensuring the availability of rough diamonds to the exporters of cut polished diamonds and are issued for import of rough diamonds only, the Private Bonded Warehouses are meant for making India a Trading Centre of diamonds and coloured gemstones and both the rough as well as cut polished diamonds/coloured gemstones can be imported into such Warehouse. Therefore, it is clarified that the facility of private Bonded Warehouses as envisaged under Para 8.13 of the said Policy will not be limited to holders of Bulk licences under Para 8.10 of the said Policy. 3. Attention is invited to Board's instructions contained in Circular No. 99/95, dated 20.9.95, regarding storages of sensitive goods and Circular No. 28/98-Cus, dated 24.4.98, regarding setting up of Private/Public Bonded Warehouses for import and re-export of cut polished/coloured gemstones, rough diamonds etc. Instructions contained in these Circulars may be followed while licensing the Private Bonded Warehouses under Para 8.13 of the paid Policy. Other instructions issued by Board from time to time in relation to warehousing will also be applicable in so far as they are consistent with the above said Circulars. 4. In Board's Circular No. 99/95, dated 20.9.95, a provision has been made for obtaining cash deposit or Bank Guarantee equal to 25% of the duty liability. In order to safeguard Government Revenue, it has been decided that Private Bonded Warehouse under Para 8.13 will be required to give security by way of cash deposit or Bank Guarantee equal to 50% of the duty liability instead of 25% as provided in the Circular No. 99/95, dated 20.9.95, alongwith the Bond. 5. Kindly acknowledge receipt of this Circular. Difficulties, if any, faced in the implementation of the Circular may be brought to the notice of the Board at an early Dak. Sd/- (C.P.Goyal) Sr. Technical Officer (FTT)