Customs Act, 1962 Section 62 — Omitted []****
Customs Act, 1962 · Omitted []****
Plain-English Explanation
Overview
Section 62 of the Customs Act, 1962, which pertained to the clearance of warehoused goods for consumption, has been omitted. This means the procedure previously outlined in this section for taking warehoused goods out for domestic use is no longer in effect. The current procedure is now governed by other sections, which streamlines the warehousing and clearance processes.
Who Does This Apply To?
Section 62, prior to its omission, would have affected the following:
- Importers: Those who import goods and place them in a customs bonded warehouse.
- Warehouse Keepers: Individuals or entities responsible for managing and operating customs bonded warehouses.
- Customs Officers: Specifically those involved in the supervision and clearance of goods from warehouses.
However, now that it is omitted, reference must be made to the effective sections.
How It Works
Since Section 62 is omitted, there is no "how it works" for this specific section. The function of removing warehoused goods for domestic consumption is still crucial, but handled via other provisions.
Before its omission, Section 62 essentially provided:
- Filing an Ex-Bond Bill of Entry: An importer had to submit a Bill of Entry for Home Consumption to the proper officer, declaring their intention to clear warehoused goods for domestic use.
- Assessment of Duty: The proper officer would assess the applicable customs duties and other taxes on the goods, based on the rates and valuation prevailing on the date the Bill of Entry was presented.
- Payment of Duty: The importer then had to pay the assessed duties and taxes.
- Clearance of Goods: Upon payment of duties, the proper officer would grant clearance for the goods to be removed from the warehouse for domestic consumption.
The current procedure for clearing goods is spread out across other sections and regulations, generally involving electronic filing of documents and streamlined assessments.
Important Conditions & Exceptions
- Prior to omission, all relevant duties must be paid before goods could be cleared for consumption.
- The value of goods for duty assessment had to be determined at the rate and tariff at the time of filing the Ex-Bond Bill of Entry.
- Goods might be subject to other regulatory requirements, such as import licenses or compliance with specific standards, even while warehoused.
- There might be penalties and legal consequences if goods were removed without proper authorization and payment of duties.
Practical Example
Prior to the omission, suppose XYZ Importers placed 100 laptops in a customs bonded warehouse. They later decided to clear 50 laptops for domestic sale.
- XYZ Importers would file an Ex-Bond Bill of Entry for 50 laptops.
- The Customs Officer would assess the duty, say at 18% on a value of ₹50,000 per laptop (total assessable value ₹25,00,000).
- XYZ Importers would pay customs duty of ₹4,50,000 (18% of ₹25,00,000) plus any applicable IGST, cess etc.
- Upon payment, the 50 laptops could be removed from the warehouse.
Now, the procedures are different due to the omission, so reference must be made to the current regulations for removing warehoused goods.
Key Amendments
No major amendments since omission. The section has been removed completely, requiring a shift in focus to other relevant provisions within the Customs Act, 1962, and related regulations that govern the clearance of warehoused goods.
No case laws found for this provision yet.
Browse all case laws →Frequently Asked Questions
What did Section 62 of the Customs Act, 1962 previously cover, and why was it omitted?
Section 62 of the Customs Act, 1962 pertained to the power to lease warehouses. It has been omitted by way of amendments, likely due to redundancy or streamlining of warehousing regulations under other sections of the Act, or subsequent rules and regulations pertaining to bonded warehouses.
Since Section 62 is omitted, which sections of the Customs Act, 1962, now govern the leasing of warehouses for customs purposes?
With the omission of Section 62, the leasing of warehouses, if permitted, would fall under the broader provisions related to warehousing in Chapter IX of the Customs Act, 1962 (Sections 57 to 73A). Specific details would likely be governed by regulations issued by the Central Board of Indirect Taxes and Customs (CBIC).
Does the omission of Section 62 affect the validity of any existing leases that were granted under that section before its omission?
The impact on existing leases granted under the erstwhile Section 62 depends on the specific amendment and any transitional provisions. Generally, omitting a section does not automatically invalidate prior legal acts conducted under it, unless explicitly stated in the amendment or subsequent regulations. Review the amending legislation for specific clauses related to leases entered into before the omission.
Where can I find the most up-to-date regulations and notifications concerning customs warehousing, given the omission of Section 62?
The most up-to-date regulations can be found on the official website of the Central Board of Indirect Taxes and Customs (CBIC). You should also refer to relevant circulars and notifications issued by the CBIC, which provide detailed guidance on warehousing procedures and obligations, specifically those addressing leasing or operating procedures.
If my business operated a warehouse under lease previously governed by Section 62, what steps should I take to ensure compliance after its omission?
You should first consult with a customs expert to understand the implications of the omission on your existing lease and operational procedures. Review relevant CBIC notifications and circulars to ensure your warehouse operations comply with current warehousing regulations under Chapter IX of the Customs Act, 1962, and any updated guidelines. You may need to update internal procedures or obtain new certifications/approvals.
Are there any specific penalties associated with non-compliance related to customs warehousing, even after the omission of Section 62?
Yes, penalties for non-compliance with customs warehousing regulations remain in effect under various provisions of the Customs Act, 1962. These penalties can include fines, seizure of goods, and even imprisonment, depending on the nature and severity of the violation. Refer to sections like 111, 112, and 114AA for specific penalties.
Key Conditions & Requirements
| Condition | Details |
|---|---|
| Section Omitted - No Provisions Exist | Section 62 of the Customs Act, 1962 has been omitted, meaning it no longer exists and has no operative provisions. |
| No Time Limits Apply | Since the section is omitted, there are no time limits associated with it. |
| No Monetary Thresholds Applicable | As the section is omitted, there are no monetary thresholds to consider. |
| No Eligibility Criteria Required | Because the section is omitted, no eligibility criteria are relevant. |
| No Penalties Possible | Due to the omission of the section, no penalties can be imposed under it. |
| No Exemptions Granted | Since the section is omitted, it cannot grant any exemptions. |
| Historical Relevance Only | The section's content, if any existed before omission, is now only of historical relevance. |
Amendment History
Section 62 omitted (w.e.f. 14-5-2016) by section 129 of the Finance Act, 2016 (28 of 2016). Section 62, before omission, stood as under: "
Control over warehoused goods.- (1) All warehoused goods shall be subject to the control of the proper officer. (2) No person shall enter a warehouse or remove any goods therefrom without the permission of the proper officer. (3) The proper officer may cause any warehouse to be locked with the lock of the Customs Department and no person shall remove or break such lock. (4) The proper officer shall have access to every part of a warehouse and power to examine the goods therein.".