Sections 57 and 58 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.
Sections 57 and 58 are one sentence each. Section 57 lets the Principal Commissioner or Commissioner of Customs licence a public warehouse in which dutiable goods may be deposited. Section 58 lets the same officer licence a private warehouse in which dutiable goods imported by or on behalf of the licensee may be deposited. Both are on prescribed conditions.
This article follows the Customs Act, 1962 as per the text on the CBIC portal updated to 30 March 2022. Later Finance Acts must be checked for changes to these sections before you act on them.
The Principal Commissioner of Customs or Commissioner of Customs may, subject to prescribed conditions, license a public warehouse (section 57) where dutiable goods may be deposited, or licence a private warehouse (section 58) where dutiable goods imported by or on behalf of the licensee may be deposited. The conditions are not in the Act; they are prescribed in regulations.
Why the licence matters
Chapter IX deals with warehousing, so that goods can be deposited without payment of duty at the time of import and the duty can be paid when the goods leave. Before goods can be deposited in a warehouse, the warehouse itself must be licensed. Sections 57 and 58 are where that licensing power sits. A business that wants its own bonded facility starts at section 58, and our private bonded warehouse licence service covers that process. For the meaning of "warehouse" and "dutiable goods", see our article on the definitions in section 2, and for the whole chapter see our post on bonded warehouses under sections 57 to 73, listed below.
Section 57: licensing of public warehouses
The Principal Commissioner of Customs or Commissioner of Customs may, subject to such conditions as may be prescribed, license a public warehouse wherein dutiable goods may be deposited.
Section 57 was substituted w.e.f. 14-5-2016 by section 124 of the Finance Act, 2016 (28 of 2016), as the footnote prints. The footnote also prints the earlier wording, which spoke of the appointment of public warehouses by a lower-ranking officer; that is not the rule now. The live text speaks of licensing, by the Principal Commissioner or Commissioner.
Four things to read from the sentence:
- The officer. The Principal Commissioner of Customs or Commissioner of Customs.
- The verb. "May ... license". It is a power, not an entitlement of any applicant.
- The conditions. "Such conditions as may be prescribed".
- The purpose. A public warehouse is one "wherein dutiable goods may be deposited". The text gives no further description of who may use it.
Section 58: licensing of private warehouses
The Principal Commissioner of Customs or Commissioner of Customs may, subject to such conditions as may be prescribed, licence a private warehouse wherein dutiable goods imported by or on behalf of the licensee may be deposited.
Sections 58, 58A and 58B were substituted for the earlier section 58 w.e.f. 14-5-2016 by section 125 of the Finance Act, 2016, as the footnote prints. The old section 58 is printed in full in the footnotes, with its own licence cancellation and suspension provisions, but it is not the rule. Cancellation and suspension are now in section 58B; see our article on sections 58A and 58B.
The key words are "imported by or on behalf of the licensee". A private warehouse is built around the licensee's own imports, or imports made on the licensee's behalf. That is the difference from the public warehouse in section 57, where the text states no such link to the licensee.
Public and private compared
| Point | Section 57: public warehouse | Section 58: private warehouse |
|---|---|---|
| Who grants | Principal Commissioner of Customs or Commissioner of Customs | Principal Commissioner of Customs or Commissioner of Customs |
| Instrument | Licence | Licence |
| Conditions | As prescribed | As prescribed |
| Goods that may be deposited | Dutiable goods | Dutiable goods imported by or on behalf of the licensee |
| Substituted by | Finance Act, 2016, section 124 (w.e.f. 14-5-2016) | Finance Act, 2016, section 125 (w.e.f. 14-5-2016) |
A third kind, the special warehouse, is in section 58A. Section 57 and the public warehouse also appear in section 46, where an importer lacking full information can be permitted to deposit goods in a public warehouse appointed under section 57 without warehousing them.
The regulations on licensing
The copy consulted of the Public Warehouse Licensing Regulations, 2016 is dated 14 May 2016 (file date). Its table of contents lists regulations on licensing of a public warehouse, conditions to be fulfilled by the applicant, grant of licence, validity of licence and non-transferability of licence. The copy consulted of the Private Warehouse Licensing Regulations, 2016 is also dated 14 May 2016 (file date), and its table of contents has the same set of headings for a private warehouse. This article takes no rule-wise detail from either; the regulations are where the applicant's conditions are set out, and they should be read in their current form.
What the sections do not say
- They state no fee, security, period of validity or application procedure.
- They do not say how long the officer may take to decide.
- They do not say that a licence must be granted if conditions are met; the word is "may".
- They do not list the goods that may be deposited beyond "dutiable goods".
What happens after the licence
A licensed warehouse is the place where goods may be deposited under the later sections of the Chapter. Section 59 requires a bond, section 60 permits removal of goods for deposit in a warehouse, and section 61 sets the period goods may remain warehoused. Manufacture in a warehouse under section 65 has its own post on our site: Customs bonded manufacturing under section 65.
A worked example
Ganga Beverages imports flavour concentrates regularly and wants to hold them without paying duty at the time of import. It applies for a licence for its own premises as a private warehouse under section 58, on the conditions prescribed in the regulations. If the Commissioner grants it, the warehouse may hold dutiable goods imported by or on behalf of Ganga Beverages. A separate firm, Harbour Cold Stores, operates a facility that serves several importers. The route for such a facility is a public warehouse licence under section 57, again on the prescribed conditions. In both cases the licence comes from the Principal Commissioner or Commissioner, and the later sections of Chapter IX (bond, deposit, period of storage) then apply to goods placed inside.
Practical points
- Choose the right type. A private warehouse is tied to the licensee's own imports; a public warehouse serves dutiable goods deposited under the section.
- Read the licensing regulations first. The Act leaves the conditions to them.
- Plan for the bond and security. Section 59 requires a bond when goods are warehoused.
- Do not assume a licence is automatic. The text uses "may".
- Keep the licence current. Cancellation and suspension are in section 58B.
Need help with a private bonded warehouse licence?
If you want to hold imported goods in your own bonded premises, our team can guide you through the licence application and the conditions. See our private bonded warehouse licence service.
Key takeaways
- Section 57 lets the Principal Commissioner or Commissioner of Customs licence a public warehouse for dutiable goods, on prescribed conditions.
- Section 58 lets the same officer licence a private warehouse for dutiable goods imported by or on behalf of the licensee.
- Both sections were substituted w.e.f. 14-5-2016 by the Finance Act, 2016.
- The conditions of licensing are prescribed in regulations, not in the Act.
- Cancellation and suspension are dealt with in section 58B.
Read next
- Sections 58A and 58B: special warehouses and cancellation of warehouse licence
- Sections 59 and 60: warehousing bond and permission to deposit goods
- Customs bonded warehouse: Sections 57 to 73
- Customs bonded manufacturing under section 65 (MOOWR)
Disclaimer: Based on the Customs Act, 1962 as published on the CBIC Tax Information Portal, updated to 30 March 2022 (amended up to the Finance Act, 2022), as consulted on 2 October 2026. Finance Acts of 2023 and later, and the current rules, regulations and notifications, should be checked. This article is general information, not legal advice; check the official text before acting.