CA Final · Indirect Tax Laws · Warehousing
Bharat Imports Ltd regularly imports goods for warehousing and wants to avoid executing a separate bond for every consignment. Under the Customs Act, 1962, which statement is correct?
The Assistant Commissioner or Deputy Commissioner of Customs may permit a general bond in an approved amount covering goods to be warehoused within a specified period. The importer must still furnish the prescribed security in addition to the bond.
- AThe Assistant or Deputy Commissioner of Customs may permit a general bond in an amount he approves, for goods imported within a specified periodCorrect
- BThe importer may execute a general bond only with the Board's approval and only for exported goods
- CA general bond is permitted and no security needs to be furnished in addition
- DA general bond must always equal thrice the duty on the first consignment
Explanation
Section 59(2) lets the Assistant Commissioner or Deputy Commissioner permit a general bond in an approved amount for goods imported within a specified period. Under section 59(3), security as prescribed is still required in addition to the bond, so the third option is wrong.
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