Warehousing bond
Section 59 of the Customs Act, 1962 deals with warehousing bond. The importer of any goods in respect of which a bill of entry for warehousing has been presented under section 46 and assessed to duty under section 17 or section 18 shall execute a bond in a sum equal to thrice the amount of the duty assessed on such goods, binding himself-- (a) to comply with all The Act came into force on 01 Feb 1963.
1[59. Warehousing bond.--The importer of any goods in respect of which a bill of entry for warehousing has been presented under section 46 and assessed to duty under section 17 or section 18 shall execute a bond in a sum equal to thrice the amount of the duty assessed on such goods, binding himself--
(a) to comply with all the provisions of the Act and the rules and regulations made thereunder in respect of such goods;
(b) to pay, on or before the date specified in the notice of demand, all duties and interest payable under sub-section (2) of section 61; and
(c) to pay all penalties and fines incurred for the contravention of the provisions of this Act or the rules or regulations, in respect of such goods.
(2) For the purposes of sub-section (1), the Assistant Commissioner of Customs or Deputy Commissioner of Customs may permit an importer to execute a general bond in such amount as the Assistant Commissioner of Customs or Deputy Commissioner of Customs may approve in respect of the warehousing of goods to be imported by him within a specified period.
(3) The importer shall, in addition to the execution of a bond under sub-section (1) or sub-section (2), furnish such security as may be prescribed.
(4) Any bond executed under this section by an importer in respect of any goods shall continue to be in force notwithstanding the transfer of the goods to another warehouse.
(5) Where the whole of the goods or any part thereof are transferred to another person, the transferee shall execute a bond in the manner specified in sub-section (1) or sub-section (2) and furnish security as specified under sub-section (3).]
Section 59, The Customs Act, 1962 (Act 52 of 1962).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
-
Sundaresh Bhatt vs Central Board of Indirect Taxes and Customs
Court's Decision & Legal Precedent
Once moratorium is imposed under Sections 14 or 33(5) of the Insolvency and Bankruptcy Code, 2016, the Customs authority has only limited jurisdiction to assess and determine the quantum of customs duty and other levies. The Customs authority does not have the power to initiate recovery of dues by means of sale or confiscation as provided under the Customs Act. After such assessment, the Customs authority must submit its claims in accordance with the procedure laid down in the IBC and in strict compliance with prescribed time periods before the adjudicating authority. The Insolvency and Bankruptcy Code overrides the Customs Act to this extent, and the Liquidator can immediately secure goods from the Customs authority to be dealt with appropriately under the IBC. Additionally, the Liquidator has discretion in choosing the mode of sale of corporate assets (auction or private contract), and no vested right accrues to any bidder merely by participation in a bidding process; the Liquidator's commercial decisions regarding asset sales are not subject to judicial review.
On this section: Requires execution of bond for warehousing goods; creates obligation to clear goods or pay duties
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
-
… Accordingly, an importer has to submit a bill of entry either for home consumption or for warehousing in terms of Section 46 of the Customs Act, in the prescribed format. - 26 When a person chooses to warehouse the goods, he ought to execute a bond in terms of Section 59 of the Customs Act. Such warehoused goods can subsequently be either cleared for home consumption or can be exported. - 27 Section 61 of the Customs Act mandates the time period allowed for warehousing. For example, in the case of capital goods intended for a 100% exportoriented undertaking, warehousing is …
-
… One M/s. Kushang Apparel Ltd. had imported CTV kits and filed six Bills of Entries, all dated 9th February, 2001. Such goods were permitted by the Custom Department to be kept in warehouse for one year in terms of Section 59 of the Customs Act, 1962[1]( page-1-0) at ICD, Faridabad. The Bond period expired on 28th February, 2002 but the importer did not clear the imported goods and also did not pay the rent for the warehouse. The warehouse issued notices for the recovery of its dues failing which it will be constrained to sell the …
-
… of the Customs Act, the Assistant Commissioner of Customs or the Deputy Commissioner of Customs is empowered to licence private warehouses wherein dutiable goods imported by or on behalf of the licensee may be deposited. The deposit contemplated by Sec.58 is subject to the execution of a warehousing bond under Section 59 of the Customs Act. The goods so deposited are subject to the control of the proper officer under Sec.62. The owner of the goods so deposited can deal with the said goods only with the sanction of the proper officer and on payment of the requisite fees. Sec.67 permits removal of goods from one warehouse to another. …
Made under this section, and citing it
3 instruments name this provision in its title or its text without being made under it.
- Special Warehouse (Custody and Handling of Goods) Regulations, 2016Regulation 2016
- Warehouse (Custody and Handling of Goods) Regulations, 2016 Notification No. 68 /2016- Customs (N.T.) Dated 14th May, 2016Regulation 2016
- Warehouse (Custody and Handling of Goods) Regulations, 2016 Notification No. 68 /2016- Customs (N.T.) Dated 14th May, 2016Regulation 2016
Questions about Section 59
What have the courts held on Section 59 of the Customs Act?
Sundaresh Bhatt vs Central Board of Indirect Taxes and Customs (26 Aug 2022) is the leading judgment on this section among those set out below: Requires execution of bond for warehousing goods; creates obligation to clear goods or pay duties.
How do I find court cases under Section 59 of the Customs Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Customs Act 1962 59, section 59 Customs Act 1962, section 59 of the Customs Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 1 reported judgment on this section is set out on this page, beginning with Sundaresh Bhatt vs Central Board of Indirect Taxes and Customs (26 Aug 2022).
What should I read with Section 59 of the Customs Act, and has it changed?
Its own text turns on section 17 (Assessment of duty), section 18 (Provisional assessment of duty), section 46 (Entry of goods on importation), section 61 (Period for which goods may remain warehoused), so none of them can safely be read on its own. 3 other provisions in this corpus refer back to it. 3 instruments name it without being made under it, most recently Special Warehouse (Custody and Handling of Goods) Regulations, 2016 (2016), then Warehouse (Custody and Handling of Goods) Regulations, 2016 Notification No. 68 /2016- Customs (N.T.) Dated 14th May, 2016 (2016).
When did Section 59 of the Customs Act come into force?
Section 59 of the Customs Act, cited as Customs Act 1962 59, came into force on 01 Feb 1963, having been enacted on 13 Dec 1962. It is in force as at the date shown on this page.
Other sections of this Act
- 28. Recovery of duties not levied or not paid or short-levied or short-paid or erroneously refunded2145 words
- 2. Definitions1638 words
- 129A. Appeals to the Appellate Tribunal1170 words
- 27. Claim for refund of duty1060 words
- 127C. Procedure on receipt of an application under section 127B1056 words
- 138C. Admissibility of micro films, facsimile copies of documents and computer print outs as documents and as evidence872 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.