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Cancellation of licenses of all non-functional bonded warehouses is not an easy task as it requires completion of legal formalities and data collection from the field formation.
Sources said on Monday the issue of non-operational bonded warehouses was again taken up in Board-in-Council meeting. However, customs authorities have informed the council that issuance of notices, invoking legal provisions of Customs Act, 1969 and follow-up to complete legal formalities would take some time.
The CBR has issued instructions to collectors of customs to submit latest position on the issue. The cancellation process also involves comprehensive audit and physical stock taking of bonds.
The CBR has decided to computerise all bonded warehouses. However, licenses of non-functional bonded warehouses would be cancelled on the basis of reports of collectors of customs.
They said the CBR is making serious efforts for the computerisation of all bonds and state warehouses.

Copyright Business Recorder, 2005

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