Private Warehouse Licensing Regulations explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
The Private Warehouse Licensing Regulations, 2016 govern licences for private warehouses under section 58 of the Customs Act, 1962. A private warehouse is a site or building licensed by the Principal Commissioner or Commissioner of Customs where dutiable goods imported by or on behalf of the licensee may be deposited. The regulations set out who may be licensed, what must be provided after inspection, how long the licence lasts and how it ends.
A licence may be issued to an Indian citizen or a registered or incorporated entity that gives an undertaking and furnishes a solvency certificate from a scheduled bank for an amount the Commissioner specifies. The warehouse is for goods imported by or on behalf of the licensee. After inspection the applicant provides an all risk insurance policy, two undertakings and an experienced warehouse keeper. The licence stays valid until cancelled, cannot be transferred, and may be surrendered on written request.
Position of the text: as amended up to the CBIC text updated 14 May 2016 (Notification No. 71/2016-Customs (N.T.) dated 14 May 2016); no amendment found up to 3 October 2026. Later notifications should be checked. This article describes the text as published.
The regulations were made under section 157 read with section 58 of the Customs Act, 1962; see sections 57 and 58 of the Customs Act, 1962 for the Act's rules. They follow the same pattern as the Public Warehouse Licensing Regulations, 2016, with differences set out below. Importers who want to hold their own imported goods in bond can take advice from our compliance advisory team.
Regulation 1 and regulation 2
The regulations came into force on publication in the Official Gazette. A "private warehouse" is a site or building licensed under section 58 wherein dutiable goods imported by or on behalf of the licensee may be deposited. The public warehouse definition carries no such limit. An "applicant" is a person who applies for a private warehouse licence under section 58.
Regulation 3: licensing
Regulation 3(1). On an application, the Commissioner may issue a licence to an applicant who:
- is a citizen of India or an entity incorporated or registered under any law in force;
- submits an undertaking to comply with the terms and conditions the Commissioner specifies; and
- furnishes a solvency certificate from a scheduled bank for an amount to be specified by the Commissioner.
The proviso says the solvency certificate condition does not apply to an undertaking of the Central Government, a State Government or a Union territory.
What differs from the public warehouse regulations. The public warehouse regulations print a sum of two crore rupees for the solvency certificate and also exempt ports notified under the Major Port Trusts Act, 1963. The private warehouse regulations print no sum: the Commissioner specifies the amount, and the proviso lists only the Central Government, State Governments and Union territories. This regulation prints no figure for the certificate.
Regulation 3(2): bars on licensing. The Commissioner shall not issue a licence if the applicant:
- (a) has been declared an insolvent or bankrupt by a Court or Tribunal;
- (b) has been convicted of an offence under any law in force;
- (c) has been penalised for an offence under the Customs Act, the Central Excise Act, 1944 or Chapter V of the Finance Act, 1994; or
- (d) is of unsound mind and so declared by a competent Court;
or if the Commissioner is satisfied that (i) the site or building is not suitable for secure storage of dutiable goods, (ii) it is not suitable for general supervision by officers of customs, (iii) bankruptcy proceedings are pending against the applicant, or (iv) criminal proceedings are pending and the offences are of such nature that the applicant is not a fit person for the grant of a licence.
Regulation 4: conditions after inspection
After inspection of the premises, evaluation of compliance with regulation 3 and the enquiries the Commissioner considers necessary, if he is satisfied that a licence may be granted, he requires the applicant to:
| Clause | Requirement |
|---|---|
| (a) | An all risk insurance policy, including natural calamities, riots, fire, theft, skilful pilferage and commercial crime, in favour of the President of India, for a sum equivalent to the duty involved on the dutiable goods proposed to be stored in the private warehouse at any point of time |
| (b) | An undertaking to pay any duties, interest, fine and penalties payable in respect of warehoused goods under section 73A(3) or under the Warehouse (Custody and Handling of Goods) Regulations, 2016 |
| (c) | An undertaking to indemnify the Commissioner from any liability arising from loss suffered in respect of warehoused goods due to accident, damage, deterioration, destruction or any other unnatural cause during receipt, delivery, storage, despatch or handling |
| (d) | The appointment of a person with sufficient experience in warehousing operations and customs procedures as warehouse keeper |
Regulations 5, 6 and 7: grant, validity and transfer
Grant (regulation 5). On fulfilment of regulations 3 and 4, the Commissioner may grant a licence for the private warehouse, subject to such conditions as he considers necessary.
Validity (regulation 6). The licence remains valid until and unless it is cancelled under section 58B or under regulation 8(2). The regulations set no term and no renewal procedure.
Non-transferability (regulation 7). A licence is not transferable. Because a private warehouse serves goods imported by or on behalf of the licensee, a transfer of the business needs a new licence in the new entity's name.
Regulation 8: surrender
A licensee may surrender the licence by a written request to the Commissioner. On receipt, the Commissioner may cancel the licence if:
- the licensee has paid all monies due to the Central Government under the Act, rules or regulations;
- no warehoused goods remain in the private warehouse, or are deposited in it from the date of the request; and
- no proceedings are pending against the licensee under the Act, rules or regulations.
Regulation 9: existing private warehouses
A private warehouse licensed under section 58 as it stood immediately before the commencement of the Finance Act, 2016 remained valid under these regulations provided it fulfilled, within three months from the commencement of the regulations, the requirements in regulation 3(1)(b) and (c) and the conditions in regulation 4.
A worked example
Lakshmi Electronics Ltd imports components that it stores in its own bonded premises before removal for manufacturing. It applies for a private warehouse licence. The Commissioner specifies the solvency certificate amount, and Lakshmi furnishes a scheduled bank's certificate for it. After inspection the Commissioner finds the building secure and open to Customs supervision. Lakshmi provides an all risk insurance policy in favour of the President of India for the duty on the goods it expects to hold at any one time, the two undertakings, and an experienced warehouse keeper. The licence is granted and runs until cancelled. If Lakshmi's business is later transferred to a new company, the licence cannot move with it.
Need help with a private warehouse licence?
If your business wants to hold its own imported goods in bond, our compliance advisory team can check the application against regulations 3 and 4 and plan the insurance and undertakings.
Key takeaways
- A private warehouse is for dutiable goods imported by or on behalf of the licensee.
- The solvency certificate is for a bank certificate in an amount the Commissioner specifies, with an exemption for Central, State and Union territory undertakings.
- After inspection, the applicant gives an all risk insurance policy, two undertakings and a warehouse keeper.
- The licence is valid until cancelled, cannot be transferred, and can be surrendered on written request if dues are paid, no goods remain and no proceedings are pending.
Read next
- Public Warehouse Licensing Regulations, 2016: licence, conditions and surrender
- Regulations 1-6 of the MOOWR (No. 2) Regulations, 2019: eligibility and permission
- Sections 57 and 58 of the Customs Act, 1962: licensing of public and private warehouses
Disclaimer: Based on the customs regulations named above as published on the CBIC Tax Information Portal or in the Gazette and, for sets amended since 2023, the amending notifications (read through a TaxClue consolidated reading text; no official consolidated text exists), as consulted on 3 October 2026. Later notifications, fees and the Customs Act, 1962 provisions referred to should be checked. This article is general information, not legal advice; check the official text before acting.