CA Final · Indirect Tax Laws · Warehousing
Meridian Traders imports electronic components and warehouses them under a bill of entry for warehousing. It regularly imports goods for warehousing and wishes to avoid executing a separate bond for every consignment. Under section 59 of the Customs Act, 1962, which course is available?
A general bond is available. Under section 59(2), the Assistant or Deputy Commissioner of Customs may permit the importer to execute a general bond in an approved amount covering goods to be imported within a specified period, so separate bonds for each consignment are not always required.
- AThe Assistant or Deputy Commissioner may permit a general bond, in an amount he approves, for goods to be imported within a specified periodCorrect
- BA general bond is allowed only when the importer is exporting all the warehoused goods
- CA general bond can be furnished only by the owner of the warehouse and never by the importer
- DNo general bond is possible; a separate bond of thrice the duty is mandatory for each consignment
Explanation
Section 59(2) lets the Assistant Commissioner or Deputy Commissioner permit an importer to execute a general bond in an approved amount for goods to be imported within a specified period. The other options add conditions or prohibitions not found in the section. The importer must still furnish prescribed security under section 59(3).
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