Solvency Certificate equal to duty amount for storage in private bonded warehouse required :CBEC

By | June 3, 2016
(Last Updated On: June 3, 2016)

Requirement of Solvency Certificate for the purposes of Private Warehouse Licensing Regulations 2016

Circular No. 24 /2016 – Customs

F. No. 484 / 03 / 2015 – LC (Vol II)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

******

New Delhi, the 2 nd June 2016

To,

All Principal Chief Commissioners Customs,

All Principal Chief Commissioners of Customs & Central Excise,

All Chief Commissioners of Customs,

All Chief Commissioners of Customs & Central Excise,

All Directors General, Chief Departmental Representative,

All Principal Commissioners of Customs,

All Principal Commissioners of Customs & Central Excise,

All Commissioners of Customs,

All Commissioners of Customs & Central Excise.

Sub: Requirement of Solvency Certificate for the purposes of Private Warehouse Licensing Regulations 2016

Regulation 3 (1) (c) of the Private Warehouse Licensing Regulations, 2016 requires an applicant to furnish a solvency certificate from a scheduled bank for an amount to be specified by the Principal Commissioner / Commissioner of Customs.

2. While making an application for licensing of a private bonded warehouse, an applicant (importer) shall be required to indicate the maximum amount of duty involved on the goods proposed to be stored in the private bonded warehouse at any point of time.

3. The Board has decided that for the purposes of uniformity, the Principal Commissioners / Commissioners of Customs shall require that the importer furnish a solvency certificate from a scheduled bank equivalent to the aforesaid amount of duty involved.

4. However, where the applicant is the Central Government, State Government or a Union Territory administration or their undertakings, there will be no need to obtain any solvency certificates.

4.1 In the case of EoUs / EHTP / STPI units, there will be no need to obtain any solvency certificate, as the conditions regarding furnishing of bank guarantee/security are specified in chapter 6 of the Foreign Trade Policy.

4.2 As regards, AEOs / ACPs, the circulars issued in their regard shall govern the amount of solvency required to be furnished by the importer.

5. Difficulties, if any, may be brought to the notice of the Board.

6. Hindi version follows

(Temsunaro Jamir)

Under Secretary to the Govt. of India

Related Post

  1. No Interest on warehoused goods prior to allowing extensions of warehousing period
  2. Security under section 59 (3) of the Customs Act
  3. Ex-bond bill of entry filing on ICES
  4. Cenvat credit allowed on the basis of endorsed bill of entry
  5. Ex-Bond Bill of Entry as Evidence of Import of Goods into India
  6. Warehouse Code for Customs Bonded Warehouses
  7. Warehouse provisions in custom w.e.f 14.05.2016
  8. Special Warehouse (Custody and Handling of Goods) Regulations 2016
  9. Warehouse (Custody and Handling of Goods) Regulations 2016
  10. Affixation of one-time-lock on goods arrived from warehouse from customs station
  11. Consignment Bond and General Bond under Custom u/s 59
  12. Import Data Processing and Monitoring System
  13. Demurrage charges not part of assessable value for leving custom duty
  14. Govt notify Goods Exempt from Custom duty imported into India for display or use at an event specified
  15. CBEC circular on Indian Customs Single Window project , NOC Module and Lab Module
  16. Mis declaration of description of goods attracts penalty : Supreme Court
  17. Toys imported from China can be cleared after sample test proves no violation of foreign trade policy

Leave a Reply

Your email address will not be published.