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TMI BlogAmendment to Ch. IX of Customs Act, 1962 - Insertion of Section 58A - Clarification regarding transitional provisions relating to Duty Free Shops/Ship stores/Airline Stores/Diplomatic StoresX X X X Extracts X X X X X X X X Extracts X X X X ..... the Importers, Customs Brokers and the Members of the Trade is invited to the Board's Circular No. 20/2016-Customs dated 20.5.2016 on the above subject. 2. The Finance Act, 2016 has inserted section 58 A in chapter IX of the Customs Act. Section 58 A reads as under: SECTION 58A. Licensing of Special Warehouses - (1) The Principal Commissioner of Customs or Commissioner of Customs may, subject to such conditions as may be prescribed, license a special warehouse wherein dutiable goods may be deposited and such warehouse shall be caused to be locked by the proper officer and no person shall enter the warehouse or remove any goods therefrom without the permission of the proper officer. (2)The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... notified at serial no. (2) of notification 66/2016-Cus dated 14.5.2016 beyond the said three months. e. It is advised that the following time lines may be strictly followed in processing of applications by existing licensees: (i) Application to be received from existing licensees within one month along with the certificate/undertakings mentioned in sub regulation (1) of regulation 3 of the Special Warehouse Licensing Regulations 2016; (ii) The applications should be processed within 15 days of receipt. Since the due diligence of existing licenses was carried out while granting the license, there would be no need for verifying compliance to. the conditions under sub regulation (2) of regulation 3; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the goods; (d) deal with the goods and their containers in such manner as may be necessary to prevent loss or deterioration or damage to the goods; (e) show the goods for sale; or 5.2 It may be noted that a duty free shop cannot meet the ingredients of sub-section (2) and (3) of erstwhile section 62 of the Customs Act, or currently, the provisions of section 58A. Similarly, the provisions contained 'in erstwhile section 64 or as it now stands do not permit retail sales from a warehouse. From this it flows that a duty free shop located in a customs area should not be treated as a warehouse. In fact, it is a point of sale for the goods which are to be ex-bonded and removed from a warehouse for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dering Services by Customs Officers) Regulations, 1998 (Merchant Over Time) or Cost Recovery basis. To determine whether a Special Warehouse will require services of a customs officer on MOT basis or cost recovery basis, the Principal Commissioner / Commissioner will determine from the licensee the extent of requirements for services of a customs officer. Guidelines regarding determining where services are to be rendered on MOT basis or Cost Recovery basis are being issued separately. 8. Difficulties, if any, should be brought to the notice of the undersigned (Vasa Seshagiri Rao) Commissioner, Customs, Pune - Circular - Trade Notice - Public Notice - Instructions - Office ..... X X X X Extracts X X X X X X X X Extracts X X X X
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