Clearance of warehoused goods for exportation [Section 69] :

The third method of disposal of the warehoused goods is by exportation. This is normally adopted in the case of shipstores, which are meant to be exported only; goods meant for re-export and goods supplied to duty free shops and the like. Section 69 provides that:

(1) Any warehoused goods may be exported to a place outside India without payment of import duty, if-

(i) a shipping bill or a bill of export in the prescribed form or a label or declaration accompanying the goods as referred to in section 82 has been presented in respect of such goods;

(ii) the export duties, penalties, rent and other charges payable in respect of such goods have been paid; and

(iii) an order or clearance of such goods for exportation has been made by the proper officer.

(2) Notwithstanding anything contained in sub-section (1), if the Central Government is of the opinion that warehoused goods of any specified description are likely to be smuggled back into India, it may, by notification, in the Official Gazette direct that such goods shall not be exported to any place outside without payment of duty or may be allowed to be so exported subject to such restrictions and conditions as may be specified in the notification.

Main ingredients of section 69

(1) Warehoused goods may be exported out of India.

(2) No Import duty will be levied on them if the procedure prescribed is followed.

(3) A shipping bill/bill of export/label or declaration in the prescribed form should be presented in respect of the warehoused goods sought to be cleared for export.

(4) The appropriate export duty including cess leviable on such goods on export should be assessed and paid.

(5) The import dues on the goods, namely penalties, warehouse rent, interest and other warehousing charges should be paid. Only payment of import duty otherwise levi able on such warehoused goods is waived.

(6) The proper officer of customs should satisfy himself that all regulations, restrictions and prohibitions in force in respect of export of such goods, is compiled with or fulfilled. After satisfying himself about this aspect as well as payment of all duties and other charges payable he will permit removal of the goods from the bonded warehouse for export.

(7) In case Government of India is of the opinion that goods of any specified description are likely to be smuggled back into India, it may

– demand payment of import duty payable otherwise, on the warehoused goods;

– prescribe conditions to be fulfilled including execution of an Indemnity bond undertaking to produce proof of export or pay the import duty otherwise leviable

– The Government of India, by notification prescribes the circumstances under which such conditions can be imposed.