Requirement of Solvency Certificate for the purpose of Private Warehouse Licensing Regulations 2016 - Customs - PUBLIC NOTICE NO. 18/2016

OFFICE OF THE COMMISSIONER OF CUSTOMS (GENERAL), AIR CARGO COMPLEX, SAHAR, ANDHERI (E), MUMBAI 400 099 File No. : S/6-Gen-205/2016-17/B.ACC Date: 29.06.2016 PUBLIC NOTICE NO. 18/2016 Sub: Requirement of Solvency Certificate for the purpose of Private Warehouse Licensing Regulations 2016 Attention of all the Importers, Customs Brokers and the member of the Trade is invited to the Board's Circular No. 24/2016-Customs dated 02.06.2016 on the above mentioned subject. 2. Regulation 3(1) (c) of the Private Warehouse Licensing Regulations, 2016 requires an applicant to furnish a solvency certificate from a scheduled bank for an amount to be specified by the Principal Commissioner/Commissioner of Customs. 3. While making an application for licensing of a private bonded warehouse, an applicant (importer) shall be required to indicate the maximum amount of duty involved on the goods proposed to be stored in the private bonded warehouse at any point of time. 4. The Board has decided that for the purposes of uniformity, the Principal Commissioners/Commissioners of Customs shall require that the importer furnish a solvency certificate from a scheduled bank equivalent to the aforesaid amount of duty involved. 5. However, where the applicant is the Central Government, State Government or a Union Territory administration or their undertaking, there will be no need to obtain a solvency certificates. 5.1. In the case of EoUs/EHTP/STPI units, there will be no need to obtain any solvency certificate, as the conditions regarding furnishing of bank guarantee/security are specified in chapter 6 of the Foreign Trade Policy. 5.2 As regards, AEOs/ACPs, the circulars issued in their regard shall govern the amount of solvency required to be furnished by the importer. 6. Any difficulty noticed in the implementation may be brought to the notice of the undersigned. This Public Notice issues with the approval of Commissioner of Customs (Gen) ACC. (Atul Saxena) ADDL. COMMISSIONER OF CUSTOMS (GEN)