Customs Act, 1962 — Chapter IX: Warehousing
59. Warehousing bond
- The importer of goods entered for warehousing and assessed to duty under section 17 or 18 shall execute a bond, in a sum equal to twice the duty assessed, binding himself: (a) to observe all provisions of this Act and the rules/regulations in respect of the goods; (b) to pay, by the date specified in a notice of demand, all duty and interest payable under section 61(2), and rent/charges with interest at the prescribed rate; and (c) to discharge all penalties incurred for violations regarding the goods.
- The Assistant/Deputy Commissioner may permit the importer to execute a general bond, in an approved amount, covering goods to be imported and warehoused within a specified period.
- A bond executed under this section continues in force notwithstanding transfer of the goods or their removal to another warehouse. Proviso: where the goods (or part) are transferred to another person, the proper officer may accept a fresh bond from the transferee for twice the duty on the transferred goods, and the transferor’s bond is thereafter enforceable only for the balance.
