Circular No. 84/98- Customs
dated 10/11/1998

F.No. 805 /87/ 96 – FTT
Government of India
Ministry of Finance
Department of Revenue, New Delhi

Subject :  Re – export of the diamond consignment from the private bonded warehouses in Export Processing Zone.

It has been reported by the Commissioner of Customs, Ahmedabad that Private Bonded Warehouses (PBW) areset up under Para 9.21 of the Exim Policy as per the permission given by the concerned Development Commissioner and the Board of Approval. The PBW was allowed to import rough diamonds and sale it in the DTA against the REP Licences, NAW, the RBW intended to re-export a part of its unsold rough diamond. The Commissionerate further brought out that as per Para 9.12 of the Exim Policy re-export of the imports. made by PBW is permitted only for activities such  as repacking and labeling. In the instant case the PBW intended to re-export the imported rough diamonds as such. Therefore, the re-export is not permissible under Para 9.12 of the Exim Policy. The concerned Development Commissioner has permitted the PBW to re-export the goods under Para 9.18 of the Exim Policy, which refers to EOU/EPZ/EHTP/STP unit and not the PBWs.

2. The issue had been examined by the Board. It is noticed that Para 8.13 of the Exim Policy (as amended upto 13th April, 1998) provides inter alia import and re-export of rough diamonds from Private/Public Bonded Warehouses in EPZ/DTA, notwithstanding, anything contained in Para 9.12 of the Exim Policy.

3. Notwithstanding, the provisions of Para 8.13 of the Exim Policy, the bonded warehouses whether they are in the ICD/EPZ or DTA are licensed under Section 58 of the Customs Act, 1962 and operating under Chapter-IX of the Customs Act. Section 69 provides specifically that the warehoused goods, may be exported to place outside India without payment of import duty on submission of a shipping bill etc. It is, therefore, decided that the goods imported by and into the private bonded warehouses in the zones may be allowed to be re-exported under above provisions subject to the condition that the Development Commissioner or the Board of Approval had permitted such re-export.

Sd/-
(O.P. Khanduja)
Sr. Technical Officer (FTT)

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