Sections 64 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.
Three short sections in Chapter IX decide what a person who owns goods in a customs warehouse may do with them. Section 64 lists four things the owner may do after warehousing, section 66 lets the Central Government exempt imported materials used for manufacture in a warehouse, and section 67 allows the owner to move goods from one warehouse to another. This article explains them as printed in the text on the CBIC portal updated to 30 March 2022, and then adds the substitution of section 67 by the Finance Act, 2026.
The owner of warehoused goods may, after warehousing them, inspect the goods, deal with their containers to prevent loss or damage, sort the goods, and show them for sale (section 64). Where imported materials are used for manufacture in a warehouse and the duty on the materials is higher than the duty on the finished goods, the Central Government may exempt the excess rate by notification (section 66). Since the Finance Act, 2026, section 67 is a single sentence: the owner of any warehoused goods may remove them from one warehouse to another, subject to such conditions as may be prescribed. The earlier wording, which required the permission of the proper officer, was replaced.
The text consulted is the CBIC copy last updated on 30 March 2022 (the Act as amended up to the Finance Act, 2022). Section 67 has since been substituted by the Finance Act, 2026, as explained below. The Finance Act, 2023 could not be checked in full; see the section on later Finance Acts below.
Where these sections sit
Chapter IX of the Act deals with warehousing. Sections 57 to 58A deal with licensing of warehouses, section 59 with the warehousing bond, and the sections that follow with what happens to goods while they are inside. Our overview of customs bonded warehouses under sections 57 to 73 shows the whole chapter. This article takes sections 64, 66 and 67. Section 65 (manufacture and other operations in a warehouse) already has its own explainer on the site: see Section 65 and the MOOWR scheme. Section 66 depends on it, so the two should be read together.
If you run or plan a private bonded warehouse, our page on the private bonded warehouse licence explains how we support applicants.
Section 64: what the owner may do with warehoused goods
Section 64 is headed "Owner's right to deal with warehoused goods". The section says the owner of any warehoused goods may, after warehousing the same, do the following:
| Clause | What the owner may do |
|---|---|
| (a) | Inspect the goods |
| (b) | Deal with their containers in such manner as may be necessary to prevent loss, deterioration or damage to the goods |
| (c) | Sort the goods |
| (d) | Show the goods for sale |
Three points follow from the wording.
First, the right arises after warehousing. The section speaks of the owner acting "after warehousing the same". It does not give these rights for goods that have not yet been warehoused.
Second, the text of section 64 as printed does not mention the sanction of the proper officer or any fee. The footnote records that the section was substituted by section 130 of the Finance Act, 2016 (28 of 2016) with effect from 14-5-2016, and that the earlier wording was longer. The earlier wording is not the rule and is not explained here. The practical conditions on how the owner exercises these rights inside the warehouse may be found in the regulations on custody and handling of goods in warehouses; the section itself is silent on procedure.
Third, clause (b) is about protection, not alteration. The container may be dealt with only as necessary to prevent loss, deterioration or damage. Re-packing to make the goods easier to sell is not what clause (b) describes. Clause (c), sorting, is a separate item.
Example. Harbour Fabrics Pvt Ltd stores imported rolls of cloth in a bonded warehouse. A buyer wants to see the stock. Under clause (d) the company may show the goods for sale, and under clause (a) it may inspect the rolls itself. When a few outer wrappers are torn and moisture is a risk, clause (b) lets it deal with the containers as necessary to prevent damage.
Section 66: exemption for imported materials used in manufacture in a warehouse
Section 66 is headed "Power to exempt imported materials used in the manufacture of goods in warehouse". It applies where imported materials are used in accordance with section 65 for the manufacture of any goods and the rate of duty leviable on the materials exceeds the rate of duty leviable on the resulting goods.
In that situation the Central Government may, by notification in the Official Gazette, exempt the imported materials from the whole or part of the excess rate of duty. Three conditions are attached by the text itself:
- The materials must have been used in accordance with section 65.
- The rate on the materials must exceed the rate on the goods made from them.
- The Central Government must be satisfied that, in the interests of the establishment or development of any domestic industry, it is necessary to do so.
The section gives the Government a power; it does not itself grant any exemption to a warehouse owner. Whether an exemption exists, and its extent, depends on a notification, which is outside the Act. This article states no rate and no notification. The rate of duty on goods is fixed under the Customs Tariff Act, 1975.
Section 67: removal of goods from one warehouse to another
Section 67 as it now stands. The Finance Act, 2026 (section 150) substituted the whole section. It now reads: "The owner of any warehoused goods may remove them from one warehouse to another, subject to such conditions as may be prescribed." The words about the permission of the proper officer, and about conditions for the due arrival of the goods at the second warehouse, no longer appear in the section. Whether an officer's permission is still needed in practice depends on the conditions prescribed, which are not in the Act and which this article does not state.
Section 67 as printed in the CBIC copy (30 March 2022), now replaced. It said the owner of any warehoused goods may, with the permission of the proper officer, remove them from one warehouse to another, subject to such conditions as may be prescribed for the due arrival of the warehoused goods at the warehouse to which removal is permitted. The printed text had a footnote mark where the words "without payment of duty" once stood; the footnote says those words were omitted with effect from 23-12-1991 by the Customs (Amendment) Act, 1991 (55 of 1991).
The conditions are not set out in the Act. They are left to be "prescribed". The goods remain warehoused goods, and section 71 provides that no warehoused goods shall be taken out of a warehouse except on clearance for home consumption or export, or for removal to another warehouse, or as otherwise provided by the Act. Our article on sections 68 and 69 (clearance of warehoused goods) covers the clearance routes.
Rule cited
The removal of warehoused goods is implemented by the Warehoused Goods (Removal) Regulations, 2016. The copy of the regulations consulted for this series is dated 1 October 2019 (that is the date of that file, not of the Act text), so it pre-dates the 2026 substitution of section 67. Read the regulations themselves, in their current form, for the steps; this article does not set them out.
Practical points for warehouse owners
| Situation | Provision to look at |
|---|---|
| Owner wants to inspect or sort stock | Section 64(a), (c) |
| Owner wants to protect packing | Section 64(b) |
| Buyer visits the warehouse | Section 64(d) |
| Materials used in manufacture in the warehouse bear a higher rate than the goods made | Section 66 (only if a notification applies) |
| Stock to move to another licensed warehouse | Section 67 (as substituted in 2026) and the conditions prescribed |
Keep written records of every inspection and sorting exercise, and follow the prescribed conditions, including any permission they require, before any transfer. Goods that leave a warehouse otherwise than as the Act allows may attract the consequences discussed in our article on sections 70 to 72.
Changes made by later Finance Acts
| Finance Act | What changed | What the gazette prints about commencement |
|---|---|---|
| Finance Act, 2026 (No. 4 of 2026), section 150 | Section 67 is substituted by: "The owner of any warehoused goods may remove them from one warehouse to another, subject to such conditions as may be prescribed." | No date is printed in the clause. The Act received the assent of the President on 30 March 2026 |
| Finance (No. 2) Act, 2024 (No. 15 of 2024), section 101 | Adds a proviso to section 65(1) (the section on manufacture and other operations in a warehouse, which section 66 depends on): the Central Government may, in the public interest and by notification, specify manufacturing processes and other operations for a class of goods that shall not be permitted in a warehouse | No date is printed in the clause. Assent on 16 August 2024 |
Sections 64 and 66 are not shown as amended in the Finance Acts checked. The Finance Act, 2023 amendments to the Customs Act could not be checked in full, because only an extract of that Act was available. Check the current text on the CBIC portal before relying on any clause of these sections.
Need help with bonded warehousing?
If you are setting up or running a bonded facility and want your inspection, sorting and transfer practice to follow the text, our team can walk through the licence and day-to-day handling with you. Start with the private bonded warehouse licence page.
Key takeaways
- Section 64 gives the owner four rights after warehousing: inspect, deal with containers to prevent loss, sort, and show for sale.
- The printed section 64 mentions no officer sanction and no fee; practical conditions sit in regulations.
- Section 66 is a notification power of the Central Government, not an automatic exemption.
- Section 67 was substituted by the Finance Act, 2026: the owner may remove warehoused goods from one warehouse to another, subject to such conditions as may be prescribed. The earlier requirement of the proper officer's permission is no longer in the section's text.
- Check the current prescribed conditions and the official text before acting.
Read next
- Customs Bonded Warehouse: Sections 57 to 73
- Customs Bonded Manufacturing: Section 65 MOOWR
- Sections 68 and 69: clearance of warehoused goods
- Customs Bonded Warehouse: types and procedure
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. The change made by the Finance Act, 2026 is added from its gazette text; the Finance Act, 2023 could not be checked in full, and the current rules, regulations and notifications should be checked. This article is general information, not legal advice; check the official text before acting.