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Clarification regarding Private/ Public Bonded Warehouse for Diamonds/
Coloured Gemstones under Para 8.13 of Exim Policy 1997-2002
Circular No. 47 dated 27th July 1999
A point has been
raised as to whether the facility of Private Bonded Warehouses as envisaged
under Para 8.13 of Exim Policy 1997-2002 is to be provided only to the holders
of Bulk Licences under Para 8.10 of said Policy or to any other exporter.
2. The
matter has been examined in consultation with the Ministry of Commerce. It has
been clarified by the Ministry of Commerce that there is no need for drawing an
analogy between the provision of Bulk Licences (Para 8.10) and Private Bonded
Warehouses (Para 8.13) because, the Bulk Licences, issued under Para 8.10 of the
Exim Policy, are for the import of only rough diamonds from any source with an
obligation to supply the same to the holders of valid REP/ Diamond Imprest
licence, EOU/ EPZ units or to re-export the same whereas the licences for
Private/ Public Bonded Warehouses under Para 8.13 of the said Policy are issued
for import and re-export of cut & polished diamonds, cut & polished
coloured gemstones, import and re-export of rough diamonds, uncut & unset
precious stones. The objectives of both the Schemes are thus different. While
Bulk Licences are meant for ensuring the availability of rough diamonds to the
exporters of cut & polished diamonds and are issued for import of rough
diamonds only, the Private Bonded Warehouses are meant for making India a
Trading Centre of diamonds and coloured gemstones and both the rough as well as
cut & polished diamonds/ coloured gemstones can be imported into such
Warehouse. Therefore, it is clarified that the facility of private Bonded
Warehouses as envisaged under Para 8.13 of the said Policy will not be limited
to holders of Bulk licences under Para 8.10 of the said Policy.
3. Attention
is invited to Board's instructions contained in Circular No. 99/ 95, dated
20.9.95, regarding storages of sensitive goods and Circular No. 28/ 98-Cus,
dated 24.4.98, regarding setting up of Private/ Public Bonded Warehouses for
import and re-export of cut & polished/ coloured gemstones, rough diamonds
etc. Instructions contained in these Circulars may be followed while licensing
the Private Bonded Warehouses under Para 8.13 of the paid Policy. Other
instructions issued by Board from time to time in relation to warehousing will
also be applicable in so far as they are consistent with the above said
Circulars.
4. In
Board's Circular No. 99/ 95, dated 20.9.95, a provision has been made for
obtaining cash deposit or Bank Guarantee equal to 25% of the duty liability. In
order to safeguard Government Revenue, it has been decided that Private Bonded
Warehouse under Para 8.13 will be required to give security by way of cash
deposit or Bank Guarantee equal to 50% of the duty liability instead of 25% as
provided in the Circular No. 99/ 95, dated 20.9.95, alongwith the Bond.
5. Kindly
acknowledge receipt of this Circular. Difficulties, if any, faced in the
implementation of the Circular may be brought to the notice of the Board at an
early Dak.
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