Section 49 of the Customs Act, 1962 (India):

Storage of Imported Goods in Warehouse Pending Clearance

Section 49 of the Customs Act, 1962, allows for the storage of imported goods in a warehouse, pending clearance. Here’s an overview of the key provisions:

  1. Application for Storage: The importer can apply to the Customs authorities to store the goods in a warehouse.
  2. Conditions of Storage: The storage is permitted under specified conditions and for a stipulated period.
  3. Duties and Charges: The importer must pay any applicable duties and charges before the goods are cleared from the warehouse.
  4. Risk and Responsibility: The risk and responsibility for the goods stored in the warehouse lie with the importer.

This section is aimed at providing flexibility to importers, allowing them to store goods temporarily without immediate payment of customs duty, thereby facilitating smoother logistics and inventory management.

Section 59 of the Customs Act, 1962 (India):

Warehousing Bond

Section 59 deals with the warehousing bond that the importer must execute when goods are warehoused under Section 49. The main features include:

  1. Execution of Bond: The importer is required to execute a bond to the satisfaction of the Customs authorities.
  2. Conditions of the Bond: The bond ensures the due account and eventual clearance of the warehoused goods, including the payment of applicable customs duties and charges.
  3. Surety/Guarantee: The bond typically includes a surety or security guarantee to cover the customs duty liability.
  4. Prescribed Form: The bond must be executed in the prescribed form, as outlined by the Customs authorities.

Section 59 ensures that while goods are stored in the warehouse without immediate duty payment, the Customs authorities have a financial guarantee that the duties will eventually be paid, protecting the revenue interests of the government.

These sections collectively provide a mechanism for the temporary storage of imported goods and ensure that the government’s revenue interests are safeguarded through the execution of appropriate bonds by importers.

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