Excise/Custom

Solvency Certificate Requirement for Private Warehouse Licensing Regulations 2016 from Scheduled Bank-Custom Circular 24/2016

Solvency Certificate Requirement for Private Warehouse Licensing 

Circular No. 24 /2016 – Customs

F. No. 484 / 03 / 2015 – LC (Vol II)
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs

New Delhi, the 2nd June 2016

To,
All Principal Chief Commissioners Customs,
All Principal Chief Commissioners of Customs & Central Excise,
All Chief Commissioners of Customs,
All Chief Commissioners of Customs & Central Excise,
All Directors General, Chief Departmental Representative,
All Principal Commissioners of Customs,
All Principal Commissioners of Customs & Central Excise,
All Commissioners of Customs,
All Commissioners of Customs & Central Excise.

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.

2. 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.

3. 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.

4. 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.

4.1 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.

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

5. Difficulties, if any, may be brought to the notice of the Board.

6. Hindi version follows

(Temsunaro Jamir)
Under Secretary to the Govt. of India

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