Transfer of imported goods for rewarehousing from major ports to inland warehousing stations - need for adequate security for customs duty - Customs - F. No. 473/25/90-Cus.VII

Transfer of imported goods for rewarehousing from major ports to inland warehousing stations - need for adequate security for customs duty F. No. 473/25/90-Cus.VII Dated 18-5-1990 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs New Delhi Subject : Transfer of imported goods for rewarehousing from major ports to inland warehousing stations - need for adequate security for customs duty - Regarding. Large scale evasion of customs duty have been detected in cases of transfer of warehoused goods from the major ports to interior warehousing stations. This is apparently because of inadequate monitoring of rewarehousing of the imported goods permitted for transfer at the major Custom Houses and also not insisting on sufficient security of customs duty. The Warehoused Goods (Removal) Regulations, 1963 already provide for taking surety/security or both for transfer bonds taken under Section 67 of the Customs Act. It appears that this requirement is not being strictly enforced by the Custom Houses and that the rewarehousing particulars of the goods allowed for transfer are also not being insisted upon resulting in the possible evasion of customs duty. 2. The matter has been considered by the Board and it is decided that the following measures should be immediately taken by the Custom Houses :- (i) Transfer bonds under Section 67 of the Customs Act should be backed with full bank guarantee to ensure recovery of customs duty immediately on default, as provided under warehoused goods (Removal) Regulations, 1963; (ii) The rewarehousing of the goods allowed to be transferred should be strictly monitored and immediate action should be taken to recover the duty in cases where the rewarehousing certificates are not produced within the prescribed period; (iii) All Custom Houses may carry out an immediate review of cases where movements under transfer bonds were permitted in the past and action to recover the customs duty and penalty in cases of default; and (iv) Collectors having jurisdiction over the inland bonded warehouses should organise a detailed audit of these warehouses to check whether there is any abuse of the warehousing facility and take appropriate legal action. 3. It is requested that immediate action may be taken on the above lines and a report submitted to the Board within a period of three months.