Update on Private Warehousing License Regulations 2016

13/06/2016

Dated: 13/06/2016

Circular No. 24 /2016 – Customs

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.

  1. 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.
  2. 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.
  3. 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. 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.
  5. As regards, AEOs / ACPs, the circulars issued in their regard shall govern the amount of solvency required to be furnished by the importer.

circ24-2016cs

Source: CBEC/DGFT, Min of Finance, Govt. of India

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