4.23 Public/Private Customs Bonded Warehouses may be set up in Domestic Tariff Area by following the procedure envisaged in Chapter-IX of the Customs Act, 1962. Such warehouses shall be permitted to import the items in terms of paragraph 4.15 of the Policy.

On receipt of goods, such warehouses shall keep the goods for a period of one year without payment of applicable customs duties. Goods can be cleared against the Bill of Entry for home consumption, on payment of applicable custom duty and on submission of licence wherever required, provided an order for clearance of such goods for home consumption has been made by the competent customs authorities. In case of clearance against duty free categories/ concessional duty categories, exemption/ concession from duty, as the case may be, allowed. In case of clearance against DEPB, credit may be adjusted while allowing duty free imports.

The goods can be re-exported without payment of customs duty provided

1. a shipping bill or a bill of export is presented in respect of such goods; and
2. order for export of such goods has been made by competent customs authorities.

Import, storage, clearance or re-export are subject to the provisions of the Customs Act, 1962 and the rules, orders or notifications or instructions issued in respect of these provisions.