The Changeover - Sudden and Hardly Known
- THE bonds required to be obtained from importer under section 59 have been prescribed under circular no 18/2016 dated 14th May 2016.
- With the supersession of the Warehoused Goods (Removal) Regulations, 1963 the system of physical escorting of goods within the same town has been dispensed with for movement of goods from one warehouse to another.
- Escorting will also not be required for movement of goods from a warehouse to a customs station for export.
- These movements would be done by affixation of a one-time-lock. Instructions have been issued under Board's circular No.17/2016 dated 14th May 2016 regarding removal of goods from a customs station to a warehouse, which also require that the container or means of transport be affixed with a serially numbered one-time-lock (bottle seal).
- The regulations on licensing of different types of warehouses contain transitional provisions to enable the warehouses to switch over to record based control in a smooth and orderly manner.
- The provisions require existing licensees to fulfil certain conditions within a period of three months upon which they can migrate to a system of record based controls and the customs lock can be removed.
- Section 58A has been enacted to provide for a new category of warehouses (special warehouses). These warehouses shall be entitled to store specific classes of goods, which have been notified under sub-section (2) of section 58A (Notification No.66/16 - Cus (NT) dated 14th May 2016). These warehouses shall be under the lock of customs. An existing licensee or any new applicant shall be required to apply for a license under Special Warehouse Licensing Regulations, 2016, if they propose to store or continue to store goods notified under notification 66 /16-Cus (NT)dated 14th May 2016 namely, goods stored for duty free shops/airline/ship/diplomatic stores.
- It is clarified that any regulatory agency can draw a sample while goods are warehoused. If the owner of goods require samples for marketing etc., the same are to becleared on payment of duty by filing an ex-bond bill of entry.
- Under sub-section (2) of section 73A, the responsibilities of licensee have been provided in Warehouse (Custody & Handling of Goods) Regulations, 2016 and Special Warehouse (Custody &Handling of Goods) Regulations, 2016. The regulations also provide for computerization of records in respect of warehoused goods. This is supposed to be a key component based upon which liberalization in respect of warehousing procedures has been carried out.
In order to familiarize officers and trade with the provisions of the new regulations, Board requests the Commissioners/Principal Commissioners/Chief Commissioners to plan interactive sessions.
Not many in the field are aware of these changes which have hit them on a Saturday. What prevented the Board from educating the trade and officers before suddenly dropping the new procedure and statute on them. Wasn't the Board not aware that the Finance Bill would be enacted by 14th May 2016.