Resultant goods 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 13 to 16 of the Manufacture and Other Operations in Warehouse (no. 2) Regulations, 2019 (the MOOWR Regulations) deal with goods leaving a section 65 unit: transfer to another warehouse or to a customs station for export, removal of resultant goods for home consumption on payment of duty, removal for export, and proof of due arrival within one month.
A licensee may transfer warehoused goods to another warehouse or a customs station for export with due intimation to the bond officer on the transfer Form, and resultant goods may be removed for home consumption once a bill of entry for home consumption is filed and the import duty, interest, fine and penalties are paid, or for export on filing a shipping bill or bill of export and fixing a one-time-lock. The licensee must produce acknowledgements of arrival within one month, failing which the owner pays the full duty with interest, fine and penalties under section 72(1).
Position of the text: as amended up to the CBIC text updated 1 October 2019 (Notification No. 69/2019-Customs (N.T.) dated 1 October 2019); no amendment found up to 3 October 2026. Later notifications should be checked. This article describes the text as published.
These regulations follow the receipt rules in our article on regulations 7 to 12. The Act's provisions on clearance of warehoused goods are in sections 68 and 69 of the Customs Act, 1962. A unit that needs help planning its removals and duty payments can use our compliance advisory service.
Regulation 13: transfer of goods from a warehouse
Regulation 13(1). A licensee allows transfer of warehoused goods to another warehouse, or to a customs station for export, with due intimation to the bond officer on the Form for transfer of goods from a warehouse.
Regulation 13(2). On such intimation, the licensee:
- allows removal and loading onto the means of transport;
- affixes a one-time-lock to the means of transport;
- endorses the lock number on the Form and retains a copy;
- endorses the lock number on the transport document and retains a copy;
- takes the removal into record; and
- causes copies of the retained documents to be delivered to the bond officer.
In an ordinary warehouse the bond officer's permission is needed before transfer; here the licensee acts on "due intimation" to the bond officer.
Regulation 14: removal of resultant goods for home consumption
Regulation 14(1). A licensee may remove the resultant goods from the warehouse for home consumption. The proviso sets the condition: a bill of entry for home consumption has been filed in respect of the warehoused goods contained in so much of the resultant goods, and the import duty, interest, fine and penalties payable, if any, on those goods have been paid.
Regulation 14(2). The licensee retains a copy of the bill of entry filed and takes the goods removed into record.
Two points follow from the wording. The bill of entry is filed for the warehoused goods contained in the resultant goods, so the duty question is tied to the imported inputs that went into what is being removed. And the amount of duty is not set by these regulations; it is whatever the Act and the tariff provide.
Regulation 15: removal of resultant goods for export
Regulation 15(1). A licensee removes the resultant goods for export upon: (i) filing a shipping bill or a bill of export, as the case may be; and (ii) affixing a one-time-lock to the load compartment of the means of transport in which the goods are removed.
Regulation 15(2). The licensee takes the goods removed into record.
| Removal | Condition | Licensee's step after |
|---|---|---|
| Home consumption (14) | Bill of entry for home consumption filed for the warehoused goods contained in the resultant goods; duty, interest, fine and penalties paid | Retain bill of entry copy; record |
| Export (15) | Shipping bill or bill of export filed; one-time-lock on the load compartment | Record |
| Transfer to another warehouse or export station (13) | Intimation to the bond officer on the transfer Form | Lock, endorse, record, send copies |
Regulation 16: conditions for due arrival
The licensee produces:
- (i) to the proper officer, within one month of the order issued under section 60(1), or within such extended period as that officer allows, an acknowledgement that the goods have been deposited in the warehouse;
- (ii) to the bond officer in charge of the warehouse, within one month from the date of removal of the goods from the warehouse, or within such extended period as that officer allows, an acknowledgement issued by the licensee of the warehouse to which the goods have been removed, stating that the goods have arrived; and
- (iii) to the bond officer in charge of the warehouse, within one month from the date of removal, or within such extended period as that officer allows, an acknowledgement issued by the proper officer at the customs station of export, stating that the goods have arrived.
Consequence. Failing this, the owner of the goods pays the full amount of duty chargeable on the goods together with interest, fine and penalties payable under section 72(1).
| Limb | Starts running | Acknowledgement from |
|---|---|---|
| (i) | The order under section 60(1) | Receiving warehouse (deposited in the warehouse) |
| (ii) | Removal from the warehouse | The licensee of the receiving warehouse |
| (iii) | Removal from the warehouse | The proper officer at the customs station of export |
The three one-month clocks start at different events: the first from the section 60(1) order, the other two from removal. The extension is at the officer's discretion, with no outer limit printed.
A worked example
Prism Electronics Pvt Ltd makes circuit boards in its MOOWR unit. For a domestic order, it files a bill of entry for home consumption for the imported components contained in the boards being sold, pays the import duty, interest, fine and penalties payable, if any, and removes the boards; it keeps a copy of the bill of entry and records the removal. For an export order, it files a shipping bill, seals the load compartment with a one-time-lock and records the removal. It also moves some unused components to another MOOWR unit, giving the bond officer due intimation on the transfer Form, affixing the lock and endorsing its number on the Form and the transport document. Within one month it obtains the receiving unit's acknowledgement and the export station's acknowledgement for the export shipment, and produces them to the bond officer.
Need help with MOOWR removals?
If your MOOWR unit wants to plan removals for home consumption and export, with the right duty payment, one-time-lock and one-month acknowledgements, our compliance advisory team can help build the checklist.
Key takeaways
- Transfers need intimation to the bond officer on the Form, with the lock number endorsed on the Form and transport document.
- Resultant goods go for home consumption on a filed bill of entry for the warehoused goods contained in them, with duty, interest, fine and penalties paid.
- Export removal needs a shipping bill or bill of export and a one-time-lock.
- Acknowledgements of arrival are due within one month, with the clocks starting at the section 60(1) order or at removal.
- Failure makes the full duty payable with interest, fine and penalties under section 72(1).
Read next
- Regulations 7-12 of the MOOWR (No. 2) Regulations, 2019: warehouse keeper, transport and receipt of goods
- Regulations 17-20 of the MOOWR (No. 2) Regulations, 2019: records, audit, penalty and exemption
- Sections 68 and 69 of the Customs Act, 1962: clearance of warehoused goods for home consumption and export
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.