Sections 68-69 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 68 and 69 say how goods leave a customs warehouse in the two normal ways: for home consumption (section 68) and for export (section 69). Each sets out three conditions that must all be met, and section 68 also deals with giving up title to the goods. This article explains both as printed in the text on the CBIC portal updated to 30 March 2022.
Warehoused goods can be cleared for home consumption only if a bill of entry for home consumption has been presented, the import duty, interest, fine and penalties payable have been paid, and the proper officer has made an order for clearance (section 68). For export, a shipping bill, bill of export or the form prescribed under section 84 must be presented, export duty, fine and penalties must be paid, and the proper officer must order clearance; such export is without payment of import duty (section 69). The Central Government may restrict export of specified goods likely to be smuggled back.
The text consulted is the CBIC copy last updated on 30 March 2022 (the Act as amended up to the Finance Act, 2022). Later Finance Acts may have changed these sections, so check them before acting.
Why these sections matter
Goods placed in a bonded warehouse under Chapter IX stay there without payment of import duty until they are cleared. Section 71 says 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. Sections 68 and 69 are therefore the two exits. The wider chapter is explained in our overview of customs bonded warehouses under sections 57 to 73. Where the goods were made inside the warehouse under section 65, see Section 65 and the MOOWR scheme.
If you hold or are applying for a bonded facility, our page on the private bonded warehouse licence explains how we can help.
Section 68: clearance for home consumption
Section 68 says any warehoused goods may be cleared from the warehouse for home consumption if each of three clauses is met.
| Clause | Condition |
|---|---|
| (a) | A bill of entry for home consumption in respect of the goods has been presented in the prescribed form |
| (b) | The import duty, interest, fine and penalties payable in respect of the goods have been paid |
| (c) | An order for clearance of the goods for home consumption has been made by the proper officer |
The conditions are joined by "and", so a missing payment or a missing order blocks clearance.
Clause (b) names four heads of payment: import duty, interest, fine and penalties. The footnote records that clause (b) was substituted with effect from 14-5-2016 by section 132 of the Finance Act, 2016 (28 of 2016). The earlier wording, which also mentioned rent and other charges, is not the rule and is not explained here.
First proviso: electronic order. The order in clause (c) may also be made electronically through the customs automated system on the basis of risk evaluation through appropriate selection criteria. The footnotes show this proviso was inserted by section 114 of the Finance Act, 2003 and its opening words were substituted by section 83 of the Finance Act, 2018 (13 of 2018) with effect from 29-3-2018. The text speaks only of "appropriate selection criteria"; it does not set out the criteria.
Second proviso: relinquishing title. The owner of any warehoused goods may, at any time before an order for clearance for home consumption has been made, relinquish his title to the goods upon payment of the penalties that may be payable in respect of the goods. On such relinquishment he is not liable to pay duty on them. The words "rent, interest, other charges and" were omitted with effect from 14-5-2016, so the printed proviso speaks only of penalties.
Third proviso: no relinquishment where an offence appears. The owner is not allowed to relinquish title to goods regarding which an offence appears to have been committed under the Act or any other law for the time being in force. This proviso was inserted with effect from 18-4-2006 by section 59 of the Finance Act, 2006.
Example. Lakeview Components Pvt Ltd warehoused a consignment of machine parts but the customer cancelled the order. Before any clearance order is made, the company may relinquish title and pay any penalties payable, and it will not owe duty on those goods, provided no offence appears to have been committed in respect of them. If the goods were instead to be sold in India, the company would present a bill of entry for home consumption, pay the amounts in clause (b) and wait for the proper officer's order.
For bill of entry basics see our guide on bill of entry types, filing and assessment. For the wider import clearance flow see customs clearance for imports, step by step.
Section 69: clearance for export
Section 69(1) says warehoused goods may be exported to a place outside India without payment of import duty if the following three clauses are met.
| Clause | Condition |
|---|---|
| (a) | A shipping bill or a bill of export, or the form prescribed under section 84, has been presented for the goods |
| (b) | The export duty, fine and penalties payable in respect of the goods have been paid |
| (c) | An order for clearance of the goods for export has been made by the proper officer |
Clause (a) was substituted with effect from 31-3-2017 by section 103 of the Finance Act, 2017 (7 of 2017). Clause (b) was substituted with effect from 14-5-2016. The heading and clause (c) say "export"; the footnotes record that this word replaced "exportation" in 2016.
A proviso, inserted by section 84 of the Finance Act, 2018 (13 of 2018) with effect from 29-3-2018, allows the order in clause (c) to be made electronically through the customs automated system on the basis of risk evaluation through appropriate selection criteria.
Sub-section (2): goods likely to be smuggled back. Notwithstanding sub-section (1), if the Central Government is of opinion that warehoused goods of any specified description are likely to be smuggled back into India, it may by notification in the Official Gazette direct either that such goods shall not be exported without payment of duty, or that they may be so exported subject to the restrictions and conditions in the notification. The Act names no goods here; everything depends on a notification. This article states none.
For export documents see shipping bill documentation and process and customs clearance for exports.
Practical checklist
- Decide the route: home consumption (section 68) or export (section 69).
- Present the right document: a bill of entry for home consumption, or a shipping bill, bill of export or section 84 form.
- Pay the amounts the section names: import duty, interest, fine and penalties for section 68; export duty, fine and penalties for section 69.
- Wait for the proper officer's order, which may be made electronically on risk evaluation.
- If you intend to give up the goods, do so before the home-consumption order and only if no offence appears to have been committed.
The removal of goods that have not been cleared as the Act allows, and goods not accounted for, are covered in our article on sections 70 to 72. Moving goods between warehouses is in sections 64, 66 and 67.
Need help with clearing bonded stock?
If you plan to bring stock out of a bonded warehouse for the domestic market or for export, we can help you line up the documents, the payments and the order sequence. See our private bonded warehouse licence page to begin.
Key takeaways
- Section 68 has three cumulative conditions: bill of entry, payment of duty, interest, fine and penalties, and the proper officer's order.
- Title may be relinquished before the clearance order, but not where an offence appears to have been committed.
- Section 69 allows export of warehoused goods without payment of import duty, with its own three conditions.
- The Central Government may restrict export of goods likely to be smuggled back, by notification.
- Later Finance Acts may have changed these sections; check before acting.
Read next
- Sections 64, 66 and 67: owner's rights and transfer between warehouses
- Sections 70 to 72: volatile goods and goods improperly removed
- Customs Bonded Warehouse: Sections 57 to 73
- Bill of Entry: types, filing and assessment
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.