Allotment of warehouse code for Customs Bonded Warehouses - Customs - 17/2016

OFFICE OF THE COMMISSIONER OF CUSTOMS NEW CUSTOMS HOUSE, PANAMBUR, MANGALORE-10 C.No.S-13/05/2016 Bonds Date: 01.06.2016 PUBLIC NOTICE NO. 17/2016 Subject: Allotment of warehouse code for Customs Bonded Warehouses. The Importers, Exporters, Customs Brokers and all concerned are hereby informed that the Central Board of Excise and Customs has amended the Chapter IX of the Customs Act 1962 (Sections 57 to 73A), in order to liberalise the warehouse procedure and to promote ease of doing business, as proposed in the Finance Bill 2016. In this regard, attention is invited to the following notifications issued by the Board, which are available in the website URL http://www.cbec.gov.in/Customs/Notifications/Non-Tariff . i. Notification No.66/2016 cus (NT) dt 14.5.16-regarding class of goods to be warehoused in the Special Warehouses. ii. Notification No.67/2016 cus (NT) dt 14.5.16-regarding Warehoused Goods (Removal) Regulations, 2016. iii. Notification No.68/2016 cus (NT) dt 14.5.16-regarding Warehouse (Custody Handling of Goods) Regulations, 2016. iv. Notification No.69/2016 cus (NT) dt 14.5.16-regarding Special Warehouse (Custody Handling of Goods) Regulations, 2016. v. Notification No.70/2016 cus (NT) dt 14.5.16-regarding Public Warehouse Licensing Regulations, 2016. vi. Notification No.71/2016 cus (NT) dt 14.5.16-regarding Private Warehouse Licensing Regulations, 2016. vii. Notification No.72/2016 cus (NT) dt 14.5.16-regarding Special Warehouse Licensing Regulations, 2016. Attention is also invited to the following Circulars issued by the Board, which are available in the website URL http://www.cbec.gov.in/Customs/Circulars . i. Circular No. 17/2016 Customs dt 14.05.2016-dealing with instructions for affixation of one time lock for removal of goods from Customs Station to the warehouse. ii. Circular No. 18/2016 Customs dt 14.05.2016-regarding bond required to be filed under Section 59. iii. Circular No. 19/2016 Customs dt 20.05.2016-dealing with allotment of warehouse code for Customs Bonded Warehouses. vi. Circular No. 20/2016 Customs dt 20.05.2016-regarding clarifications on transitional provisions relating to Duty free shops/Ship stores/Airline stores/Diplomatic Stores. v. Circular No. 21/2016 Customs dt 31.05.2016- regarding security under section 59 (3) of the Customs Act. vi. Circular No. 22/2016 Customs dt 31.05.2016-dealing with procedure regarding filing of ex-bond bill of entry. 3. In pursuant to the above changes, transitional provisions have been prescribed to switch over to record based control in a smooth and orderly manner. The provisions require licensees to fulfil certain conditions within a period of one/three months upon which they can migrate to a system of record based controls and the customs lock can be removed. 4. The Warehoused Goods (Removal) Regulations, 1963 have been superceded by the Warehoused Goods (Removal) Regulations, 2016 and the system of physical escorting of goods within the same town has been dispensed with for movement of goods from one warehouse to another. Escorting will also not be required for movement of goods from a warehouse to a customs station for export. These movements would be done by affixation of a one-time-lock. Instructions have been issued under Board s circular No.17 / 2016 dated 14th May 2016 regarding removal of goods from a customs station to a warehouse which also requires that the container or means of transport be affixed with a serially numbered one-time-lock (bottle seal). 5. Section 58A has been enacted to provide for a new category of warehouses (special warehouses). These warehouses shall be entitled to store specific classes of goods which have been notified under sub-section (2) of section 58A (Notification No.66/16-Cus (NT) dated 14 th May 2016). These warehouses shall be under the lock of customs. An existing licensee or any new applicant shall be required to apply for a license under Special Warehouse Licensing Regulations, 2016, if they propose to store or continue to store goods notified under notification 66/16-Cus (NT) dated 14th May 2016 namely, goods stored for duty free shops/airline/ship/diplomatic stores. 6. Section 64 of the Customs Act, has been amended clarifying inter alia that any regulatory agency can draw a sample while goods are warehoused. It may also be noted that the Warehouse (Custody Handling of Goods) Regulations, 2016 and Special Warehouse (Custody Handling of Goods) Regulations, 2016 specifically provide for the warehouse keeper to maintain records of samples drawn by any regulator under any law for the time being in force. However, if the owner of goods require samples for marketing etc., the same are to be cleared on payment of duty by filing an ex-bond bill of entry. 7. 73A(2) prescribes the responsibilities of licensee as per the Warehouse (Custody Handling of Goods) Regulations, 2016 and Special Warehouse (Custody Handling of Goods) Regulations, 2016. The regulations also provide for computerization of records in respect of warehoused goods. This is a key component based upon which liberalization in respect of warehousing procedures has been carried out. Warehouse keepers are advised to acquire I.T. capabilities for inventory management at the earliest. 8. The ICES system had default code as INNML101 as warehousing code while filing warehousing Bills of Entry and other purposes. There is no code to distinguish the warehouses presently. After 15th June this default code would be removed mandating the codes of individual registered warehouses to be entered. The existing warehouse licence holders are advised to comply with the relevant notifications within the prescribed time period, if they wish to continue holding the licence for storage of goods. 9. Difficulties, if any, faced in implementation of the above changes may please be brought to the notice of the undersigned immediately. (Dr. M. SUBRAMANYAM) COMMISSIONER