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.
Regulations 1 to 7 of the Warehouse (Custody and Handling of Goods) Regulations, 2016 are the front half of the operating rules for a licensed public or private warehouse. They require a warehouse keeper with a digital signature, set minimum facilities, and prescribe, step by step, how the licensee receives goods from a customs station, sends goods to another warehouse and receives goods from one.
The licensee appoints an experienced warehouse keeper, who must obtain a digital signature. The warehouse must have secure construction, locks, signage, examination space and a computerised accounting system. On receipt, the licensee verifies the one-time-lock, refuses unloading and informs the bond officer immediately if the lock is not intact, and reports any quantity discrepancy within twenty four hours. Transfers to another warehouse need the bond officer's permission under section 67.
Position of the text: as amended up to the CBIC text updated 1 October 2019 (Notification No. 70/2019-Customs (N.T.) dated 1 October 2019, which inserted regulation 15); no later amendment found up to 3 October 2026. Later notifications should be checked. This article describes the text as published.
The regulations were made by Notification No. 68/2016-Customs (N.T.) dated 14 May 2016 under section 157 read with sections 57, 58 and 73A(2) of the Customs Act, 1962. The Act's rules on warehousing bonds and permission to deposit goods are in sections 59 and 60 of the Customs Act, 1962, and on custody in sections 73 and 73A. A licensee who wants to review its warehouse documentation can use our compliance documentation service. The second half of the regulations is covered in our article on regulations 8 to 15.
Regulation 1 and regulation 2
The regulations come into force on the date of publication in the Official Gazette. Regulation 2 defines "bond officer" as an officer of customs in charge of a warehouse, and "Controller of Certifying Authorities" as the authority appointed under section 17(1) of the Information Technology Act, 2000.
Regulation 3: the warehouse keeper
Regulation 3(1). A licensee appoints a warehouse keeper who has sufficient experience in warehousing operations and customs procedures to discharge functions on the licensee's behalf.
Regulation 3(2). The warehouse keeper obtains a digital signature from authorities licensed by the Controller of Certifying Authorities for filing electronic documents required under the Act, rules or regulations. The keeper, not the licensee as such, signs the electronic filings.
Regulation 4: facilities, equipment and personnel
A licensee provides at the licensed warehouse:
| Clause | Requirement |
|---|---|
| (a) | Facilities, equipment and personnel sufficient to control access and provide secure storage, including (i) doors and other building components of sturdy construction, (ii) secure locks on doors and windows and (iii) signage that prominently indicates that the site or building is a customs bonded warehouse |
| (b) | Adequate personnel, equipment and space for the examination of goods by officers of customs |
| (c) | A computerised system for accounting of receipt, storage, operations and removal of goods |
The list in clause (a) opens with "including", so it names examples and does not limit what is "sufficient".
Regulation 5: receipt of goods from a customs station
Regulation 5(1). On receiving goods at the warehouse from a customs station, the licensee:
- verifies the one-time-lock affixed by the proper officer at the customs station on the container or means of transport;
- informs the bond officer immediately if the lock is not found intact, and refuses the unloading of the goods;
- allows unloading if the lock is intact, and verifies the quantity received by reconciling with the bill of entry for warehousing and the invoice;
- reports any discrepancy in quantity to the bond officer within twenty four hours;
- endorses the bill of entry for warehousing bearing the order under section 60(1) with the quantity of goods received, and retains a copy;
- acknowledges receipt by endorsing the transport document presented by the carrier, and retains a copy; and
- takes the goods into record.
Regulation 5(2). After taking the goods into record, the licensee causes an acknowledgement to be delivered to the proper officer under section 60(1) and to the bond officer regarding receipt.
The time limits are tight: "immediately" for a broken lock, "within twenty four hours" for a quantity discrepancy.
Regulation 6: transfer of goods to another warehouse
Regulation 6(1). A licensee does not allow transfer of warehoused goods to another warehouse without the permission of the bond officer under section 67 on the Form for transfer of goods from a warehouse. That Form is covered in our article on the Warehoused Goods (Removal) Regulations, 2016.
Regulation 6(2). When the owner produces the Form bearing the bond officer's orders, the licensee:
- (a) allows removal and loading onto the means of transport;
- (b) affixes a one-time-lock to the means of transport;
- (c) endorses the lock number on the Form and retains a copy;
- (d) endorses the lock number on the transport document and retains a copy;
- (e) takes the removal into record; and
- (f) causes copies of the retained documents to be delivered to the bond officer.
Regulation 7: receipt of goods from another warehouse
On receiving goods from another warehouse, the licensee:
- verifies the one-time-lock on the means of transport;
- informs the bond officer immediately if it is not intact, and refuses unloading;
- allows unloading if the lock is intact and reconciles the quantity with the Form for transfer bearing the bond officer's orders;
- reports any quantity discrepancy to the bond officer within twenty four hours;
- endorses the Form with the quantity received and retains a copy;
- acknowledges receipt by endorsing the transport document and retains a copy;
- takes the goods into record; and
- causes copies of the retained documents to be delivered to the bond officer and to the warehouse keeper of the warehouse from which the goods came.
The sequence mirrors regulation 5, with the Form for transfer replacing the bill of entry for warehousing, plus the extra copy to the sending warehouse's keeper.
A worked example
Eastern Spirits Warehouse receives a container from the port. The keeper checks that the customs one-time-lock is intact and allows unloading; the quantity matches the bill of entry for warehousing and the invoice except for two cartons short. The keeper reports the shortage to the bond officer the same day, within the twenty-four-hour limit. The keeper endorses the bill of entry with the quantity received, endorses the carrier's transport document and records the goods. Weeks later, the owner wants to move part of the stock to another warehouse; the keeper allows removal only after the bond officer's permission under section 67 on the transfer Form, affixes a one-time-lock and endorses its number on the Form and the transport document.
Note on commencement
The principal regulations apply from publication. An amending regulation of 2019 inserted regulation 15, which says that nothing in these regulations applies to a warehouse operating under section 65; that is covered in the companion article.
Need help with warehouse documentation?
If your bonded warehouse needs a check of its receipt, transfer and record procedures against regulations 3 to 7, our compliance documentation team can help review forms, endorsements and the timeline for reporting discrepancies.
Key takeaways
- Each licensee appoints an experienced warehouse keeper who obtains a digital signature.
- The warehouse must have secure construction, locks, signage, examination space and a computerised system.
- On receipt, verify the one-time-lock; if broken, inform the bond officer immediately and refuse unloading.
- Report quantity discrepancies within twenty four hours.
- Transfers to another warehouse need the bond officer's permission under section 67 and an affixed one-time-lock.
Read next
- Regulations 8-15 of the Warehouse (Custody and Handling of Goods) Regulations, 2016: removal, records and penalty
- Warehoused Goods (Removal) Regulations, 2016: transfer, transport and due arrival
- Sections 59 and 60 of the Customs Act, 1962: warehousing bond and permission to deposit goods
- Sections 73 and 73A of the Customs Act, 1962: cancellation of warehousing bond and custody of warehoused goods
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.