A warehousing bill of entry (into bond) places imported goods in a licensed bonded warehouse under customs control. Import duty is deferred until an ex-bond bill of entry clears stock to the domestic market.
A warehousing bill of entry (also called "into bond" or the "yellow BoE") places imported goods in a customs-licensed bonded warehouse without paying duty upfront. Duty is deferred until goods are cleared for home consumption via an ex-bond bill of entry. This guide covers when to use it, how to file it, bond obligations, and the path to ex-bond clearance. For the general definition and overview of all bill of entry types, see what is a bill of entry.
What Is a Warehousing Bill of Entry?
Under Section 46 read with Sections 57–73 of the Customs Act, 1962, importers can place goods in a licensed bonded warehouse (private or public) with duty deferred. The warehousing BoE is the customs declaration that initiates this bond — it records the goods and their value but does not trigger immediate duty payment.
Why Use a Warehousing BoE?
| Benefit | How It Helps |
|---|---|
| Cash flow management | Pay duty only when stock is sold/used — not at import date |
| Demand uncertainty | Test market demand before committing to duty on full quantity |
| Seasonal stock build | Pre-position inventory before peak season without capital lock-up |
| Re-export flexibility | Goods in bond can be re-exported with duty remission (Section 69) |
| Manufacturing under bond | Inputs can be used in bonded manufacturing (MOOWR scheme) |
| Blending/repacking | Licensed bonded warehouses permit some value-adding activities |
Types of Bonded Warehouses in India
- Public Bonded Warehouse (Type A) — operated by customs authority; mainly at major ports
- Private Bonded Warehouse (Type B) — licensed to specific importers; common for manufacturers
- Public Warehouse (Type C) — operated by private parties open to all importers
- Special Economic Zone (SEZ) Warehouses — separate regulatory framework under SEZ Act
Warehousing Period and Extensions
| Goods Category | Standard Period | Extension |
|---|---|---|
| General goods | 1 year from date of warehousing BoE | 1 year (with Principal Commissioner approval) |
| Capital goods | 3 years | Subject to Commissioner discretion |
| MOOWR (manufacturing) | As per production cycle | Annual renewal basis |
If goods are not cleared within the warehousing period, customs may sell them by auction (Section 72, Customs Act) after due notice.
How to File a Warehousing BoE on ICEGATE
- CHA selects warehousing procedure code (typically "70" in EDI)
- All cargo details entered as for home consumption BoE — same documents required
- CHA indicates the licensed warehouse where goods will be stored
- No duty payment at this stage (bond is executed instead)
- Customs issues warehousing certificate — goods can move to the bonded warehouse
- Bond register at the warehouse records goods in; quantity must match BoE
Bond Obligations
The warehousing BoE is backed by a general bond or specific bond equal to twice the duty amount. The bond ensures customs can recover duty if goods are lost, pilfered, or not cleared within the period. Bond defaults result in encashment — a costly enforcement action. Importers must:
- Maintain accurate bond register — every in/out quantity must be recorded
- Not remove goods from bond without ex-bond clearance
- Report pilferage immediately to customs for duty relief
- Keep bond register available for customs inspection
From Warehousing to Ex-Bond — The Clearance Cycle
When you want to sell or use bonded stock, you file an ex-bond bill of entry. Each ex-bond BoE:
- References the original warehousing BoE number
- Declares the quantity being withdrawn from bond
- Has duty assessed on the quantity cleared (at the rate applicable on the ex-bond date, not the original import date — rates may have changed)
- Reduces the bond balance
Frequently Asked Questions
Can I use a warehousing BoE for goods under Advance Authorization?
Generally, Advance Authorization imports are filed as home consumption with nil duty. Warehousing is possible but requires coordination with DGFT regarding the exportobligation period and bond conditions. Consult your CHA before mixing AA and bonded storage.
Is IGST paid on the warehousing BoE?
No — IGST is also deferred on warehousing. Both BCD and IGST are paid only when the ex-bond BoE is filed. This is the core cash-flow benefit of bonded warehousing.
What if the customs duty rate increases between my warehousing BoE and my ex-bond BoE?
Under Section 15 of the Customs Act, the duty rate applicable for the ex-bond BoE is generally the rate on the date the goods are cleared from the warehouse (ex-bond date), not the original import date. Rate increases post-bonding increase your eventual duty liability — factor this into inventory planning.
India bill of entry guides
Explore the full India cluster — 10 in-depth guides on ICEGATE, GST, types, and procedures.
Download BOE format
Free Word, Excel, and PDF-ready templates — use before filing in ICEGATE, NBR, or your national customs portal.
Prepare your import documentation
Use free templates, country guides, and step-by-step customs topics — no account required.