Clearance of warehoused goods for Export - CBEC's Customs Manual 2023 - Customs

16. Clearance of warehoused goods for Export: 16.1 Any warehoused goods may be exported to a place outside India without payment of import duty if (a) a shipping bill or a bill of export or the form as prescribed under section 84 has been presented in respect of such goods; (b) the export duty, fine and penalties payable in respect of such goods have been paid; and (c) an order for clearance of such goods for export has been made by the proper officer. Provided that the order referred to in clause (c) may also be made electronically through the customs automated system on the basis of risk evaluation through appropriate selection criteria. Upon the bond officer permitting the removal of the goods from the warehouse, the licensee shall, in the presence of the bond officer, cause the goods to be loaded onto the means of transport and affix a one-time-lock to the means of transport. 16.2 Warehoused goods shall be allowed to be re-exported on the following terms: (a) The import in the first instance was not un-authorized or in contravention of the FTP; a) The re-export shall not be allowed against Indian Rupees, if the goods were imported by payment in freely convertible foreign currency; and b) On re-export, the exporter realizes full export value indicated in the Export Declaration Form, within time limit specified in Regulation 9 of Foreign Exchange (Exports of Goods and Services) Regulations, 2015. 16.3 Section 69 of the Customs Act, 1962 provides that if the Central Government is of opinion that warehoused goods of any specified description are likely to be smuggled back into India, it may, by notification in the Official Gazette, direct that such goods shall not be exported to any place outside India without payment of duty or may be allowed to be so exported subject to such restrictions and conditions as may be specified in the notification. In terms of Section 69 of the Customs Act, 1962 , the following notifications have been issued: (i) Notification No. 45-Customs, dated 1-2-1963, amended vide Notification No. 185/89-Customs, dated 16.06.1989, provides that the warehoused goods shall not be exported to Bhutan, Nepal, Burma, Sikang, Tibet or Sinkiang, However, the warehoused goods can be exported to Nepal in the following circumstances: (a) If goods are exported against an irrevocable letter of credit in freely convertible currency; (b) If goods are exported for supplies to projects financed by any UN Agency or IBRD Association or ADB or any other multilateral agency of the like nature and for which payments are received in freely convertible currency; and (c) If the specified capital goods are supplied against a global tender invited by HMG of Nepal for which payment is received in Indian Rupees. These goods can be exported only from Jogbani or Raxaul LCS on production of bank certifies of receipt of the payment in freely convertible currency or Indian Rupees, as the case may be. (ii) As per Notification No.46-Cus, dated 1-2-1963, export of warehoused goods without payment of import duty in a vessel of capacity less than 1000 tons gross is permitted subject to the condition that the exporter or agent of the vessel executes a bond for an amount equal to the import duty leviable on such goods backed by surety or security and produces a certificate within 3 months from the Customs authorities at port of destination that the goods have been landed at the port of destination. (iii) Notification No.47-Cus, dated 1-2-1963 bans export of warehoused (a) Alcoholic liquors, (b) Cigarettes, (c) Cigars, and (d) Pipe Tobacco without payment of import duty as stores on board a vessel of capacity less than 200 tons gross.