Warehousing of Shipstores [Section 85]:

It has been found convenient to allow imported shipstores to be kept in a bonded warehouse and thereafter supply it to vessels/aircraft as and when required. Normally when imported goods are allowed to be kept in a warehouse the importer is required to bind him to pay the duty on the imported goods. It is customary to assess the imported goods to determine the amount of duty payable thereon before permitting such imported goods to be warehoused. In the case of shipstores such a detailed procedure is considered to be unnecessary.

Hence section 85 provides for warehousing ship-stores without assessment to duty. It provides that “where any imported goods are entered for warehousing and the importer makes and subscribes to a declaration that the goods are to be supplied as stores to vessels or aircraft, without payment of import duty under this chapter the proper officer may permit the goods to be warehoused without the goods assessed to duty.”

Bonded Aircraft Stores (Procedure) Regulation, 1965: A regulation has been made to regulate such warehousing of shipstores and is called the Bonded Aircraft Stores (Procedure) Regulations, 1965. The regulation provides that,

(1) Whenever any imported goods intended for supply for use in a foreign going aircraft are to be entered for warehousing, an application under the prescribed form should be made to the Assistant Commissioner of Customs or Deputy Commissioner of Customs.

(2) This application will be treated as a Bill of Entry.

(3) On receipt of the said application, the Assistant Commissioner or Deputy Commissioner of Customs may permit the goods specified in the application to be warehoused without the goods being assessed to duty.

(4) When the said warehoused goods are to be cleared for use as stores in a foreign going aircraft, an application has to be made to the Assistant Commissioner or Deputy Commissioner in the prescribed form.

(5) This application will be treated as a Shipping Bill.

(6) On receipt of the said application, the Assistant Commissioner or Deputy Commissioner may permit clearance of the warehoused goods specified in the application for being taken on board the foreign going aircraft as stores.