Customs
A financial guarantee provided by an importer or their agent to customs authorities ensuring payment of duties.
The warehousing bond under section 59 is the security that lets duty be deferred, and the Act fixes its size rather than leaving it to negotiation. An importer whose bill of entry for warehousing has been presented and assessed “shall execute a bond in a sum equal to thrice the amount of the duty assessed on such goods”. The bond binds the importer to three things: to comply with the Act, rules and regulations in respect of the goods; to pay all duties and interest by the date specified in a notice of demand; and to pay all penalties and fines incurred for contravention. Rather than executing one bond per consignment, an importer may be permitted by an Assistant or Deputy Commissioner to execute a general bond covering warehousing over a period — the ordinary arrangement for a regular importer.
Primary legislation, and only that. The text quoted above is the Customs Act, 1962 as published by CBIC and amended to 30 March 2022. The Act repeatedly leaves the operating detail to rules, regulations and notifications — forms, rates, qualifications, time limits — so the statute tells you what is required and the subordinate instrument tells you how. Check the current rules and any later amendment before relying on a procedure, and remember that a figure or a rate in a notification changes far more often than the section that authorises it.
From the AJG lexicon archive (July 2026).
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Compiled reference — verify current specifics at the source.
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