Diplomatic Bonds

Diplomatic Bonded Warehouse is the warehouse licensed under section 13 of the Customs Act,1969 for warehousing the dutiable goods Imported exclusively for diplomats / privileged persons. A Bonded Warehouse License is issued under the provisions of section 13 of Customs Act,1969. As provided under sub-section(2) of section 13 of the Customs Act,1969, an application for the grant of license shall be made in the prescribed form Annex-B along with following documents :-

Map of the proposed area.
Article and Memorandum of Association in case of company and copy of partnership deed in case of partnership firm.
Certificate from a scheduled bank showing soundness of financial position.
Income Tax Registration Certificate.
Details of Directors and authorized persons.
Certificate of Membership of Chamber of Commerce and Industry.
Lease / Tenancy Agreement.
Copies of National identity Card(s) & Character Certificate(s).
Comprehensive Insurance Policy from an approved Insurance Company.
Survey Certificate issued by the approved surveyor.

Besides the requirements mentioned above, all other conditions required under the Customs Act,1969 or any other law for the time being in force shall also be fulfilled.

The diplomatic bonded warehouses are dealing in Import of goods Imported exclusively for the use of diplomats, foreign missions and privileged persons. As such, all such goods / items which are used by the diplomats, foreign missions and privileged persons can be Imported.

The goods are not Imported against L/C. The Importer (holding diplomatic bonded warehouse license) Import goods on contract basis and store the same in his warehouse. Subsequently goods are sold to diplomats / privileged persons according to their requirement and exemption certificates issued by the Ministry of Foreign Affairs.

The purchase will be made strictly according to the quota fixed by the Ministry of Foreign Affairs and quantities mentioned in the exemption certificate.

Quota is allotted and purchases are authorized by the Ministry of Foreign Affairs.

The strength of the diplomatic community in the country which benefits from the warehouses is maintained by the Ministry of Foreign Affairs.

The licensee of a bonded warehouse cannot open its sub-office in other cities. Periodical stock taking is conducted. The audit is also carried out by the staff of the Director General, Revenue Receipt Audit on quarterly basis. Moreover, insurance policy is obtained from the bonders covering all risks including pilferage etc. Besides there are specific provisions in Chapter-XI and Chapter-XVIII of the Customs Act,1969. In case of detection of any pilferage or misuse of the facility, penal action under the relevant clauses of sub-section (1) of section 156 of the Customs Act,1969 can also be initiated.