The importers who do not intend clearing the imported goods for “home consumption” straightaway, may choose to warehouse the goods , store the goods under customs control or custody, and clear the same subsequently either wholly or in part, in piecemeal, on payment of customs duty due.

Warehouse could be appointed or licensed as ‘public’ under section 57 of the customs act or a ‘private’ under section 58 of the act. Only those places are called warehouses that are declared by the Central board of Excise and Customs to be ‘warehousing stations’ by means of notification in the official gazette. Sections 57 to 72 of the act deals with the various provisions related to ware housing of imported goods :

* Appointing of public warehouses
* Licensing of a private warehouses
* Warehousing bond
* Conditions for warehousing of certain goods
* Permission for deposit of goods in a warehouse
* Period for which goods may be remain warehoused
* Control over warehoused goods
* Payment of rent and warehouse charges
* Owner’s right to deal with warehoused goods
* Manufacture and other operations in relation to goods in a warehouse
* Power to exempt imported materials used in the manufacture of goods in warehouse
* Removal of goods from one warehouse to another
* Clearance of warehoused goods for home consumption
* Clearance of warehoused goods for exportation
* Allowance for taking out / removal of goods from warehouse

Private Bonded Warehouses for Exports

Private bonded warehouse exclusively for exports may be set up in DTA as per the terms and conditions of the notifications issued by Department of Revenue. Such warehouse shall be entitled to procure the goods from domestic manufacturers without payment of duty. The supplies made by the domestic supplier to the notified warehouses shall be treated as physical exports provided the payments for the same are made in free foreign exchange.