Sections 85-90 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.
The last group of sections in Chapter XI deals with "stores", the goods that a vessel or aircraft carries for use on board and for its passengers and crew. Sections 85 to 90 say how imported stores may be warehoused, stay on board, be transferred, be consumed and be taken on board with the benefit of drawback, how Indian-made stores may be exported without export duty, and what concessions apply to stores for the Indian Navy. This article explains them as printed in the text on the CBIC portal updated to 30 March 2022.
Imported stores can be warehoused without assessment to duty if the importer declares they will be supplied as stores to vessels or aircraft without payment of import duty (section 85). They may stay on board without duty (section 86), be consumed on board a foreign-going vessel or aircraft without duty (section 87), and get drawback as if exported (section 88). Indian-made stores may be exported without export duty in quantities the proper officer determines (section 89). Stores for the Indian Navy have their own concessions (section 90).
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.
What "stores" means here
The copy groups sections 85 to 90 under the sub-head "Stores". The sections speak of stores "imported in a vessel or aircraft", stores supplied "to vessels or aircrafts", and stores on a "foreign-going vessel or aircraft". The text consulted does not define "stores" in these sections; the general definitions are in section 2, which other articles in this series cover. If you want a general view of warehousing, our overview of customs bonded warehouses under sections 57 to 73 is a useful companion to section 85.
If a dispute arises over stores, our legal consultation page explains how we can help.
At a glance
| Section | Subject | Core rule |
|---|---|---|
| 85 | Warehousing of stores | May be warehoused without assessment to duty on a declaration |
| 86 | Transit and transhipment | May remain on board; may be transferred with permission |
| 87 | Consumption on board | Without payment of duty while the vessel or aircraft is foreign-going |
| 88 | Section 69 and Chapter X applied | Drawback and clearance rules apply with changes |
| 89 | Indian-made stores | May be exported without export duty in quantities the officer determines |
| 90 | Indian Navy | Stores consumed on board, drawback, and two kinds of store |
Section 85: stores may be warehoused without assessment
Where imported goods are entered for warehousing and the importer makes and subscribes to a declaration that the goods are to be supplied as stores to vessels or aircraft without payment of import duty under this Chapter, the proper officer may permit the goods to be warehoused without the goods being assessed to duty. The word is "may", so the officer has a discretion. The section does not set the form of the declaration.
Section 86: transit and transhipment of stores
Section 86 has two sub-sections.
- (1) Any stores imported in a vessel or aircraft may, without payment of duty, remain on board while it is in India.
- (2) Any stores imported in a vessel or aircraft may, with the permission of the proper officer, be transferred to any vessel or aircraft as stores for consumption there, as provided in section 87 or section 90.
So staying on board needs no permission in the text, but a transfer to another vessel or aircraft does.
Section 87: consumption on board
Any imported stores on board a vessel or aircraft, other than stores to which section 90 applies, may without payment of duty be consumed on it as stores during the period such vessel or aircraft is a foreign-going vessel or aircraft. Stores for the Navy are carved out because section 90 deals with them.
Section 88: section 69 and Chapter X applied to stores
Section 88 applies the provisions of section 69 (clearance of warehoused goods for export) and Chapter X (drawback) to stores other than those to which section 90 applies, "as they apply to other goods", subject to two changes.
| Clause | Change |
|---|---|
| (a) | The words "exported to any place outside India", or the word "exported", wherever they occur, are replaced by "taken on board any foreign-going vessel or aircraft as stores" |
| (b) | For fuel and lubricating oil taken on board any foreign-going aircraft as stores, sub-section (1) of section 74 has effect as if "the whole" stood in place of "ninety-eight per cent" |
Our articles on sections 68 and 69 and section 74 explain the provisions that section 88 borrows. The text says nothing more on how a claim for stores is made.
Section 89: Indian-made stores exported without export duty
The heading of this section, as printed, concerns stores and export duty. Its text says that goods produced or manufactured in India and required as stores on any foreign-going vessel or aircraft may be exported without payment of duty, in such quantities as the proper officer may determine. The officer must have regard to:
- the size of the vessel or aircraft,
- the number of passengers and crew, and
- the length of the voyage or journey on which the vessel or aircraft is about to depart.
The section does not state any quantity. It leaves the quantity to the officer's determination, guided by those three factors.
Example. Skyline Caterers Pvt Ltd supplies packaged meals made in India for a long-haul flight. Under section 89 the proper officer determines the quantity that may be exported without export duty, having regard to the aircraft's size, the number of passengers and crew, and the length of the journey.
Section 90: concessions for imported stores for the Navy
Section 90 has three sub-sections.
- (1) Imported stores specified in sub-section (3) may be consumed on board a ship of the Indian Navy without payment of duty.
- (2) Section 69 and Chapter X apply to those stores as they apply to other goods, with two changes: (a) "exported to any place outside India" or "exported" is replaced by "taken on board a ship of the Indian Navy"; and (b) for "ninety-eight per cent" in section 74(1), "the whole" is substituted. The printed clause (b) begins "or the words", which looks like a printing slip for "for the words"; this article reads it that way.
- (3) The stores referred to are (a) stores for the use of a ship of the Indian Navy, and (b) stores supplied without charge by the Government for the use of the crew of a ship of the Indian Navy in accordance with their conditions of service.
Practical points for ship and aircraft suppliers
- Make the declaration at entry. Under section 85, the declaration that goods are for supply as stores without payment of import duty goes with the entry for warehousing.
- Get permission before transferring. Section 86(2) needs the proper officer's permission.
- Watch the foreign-going status. Consumption without duty under section 87 is tied to the period during which the vessel or aircraft is foreign-going.
- Separate Navy stores. Sections 87 and 88 exclude Navy stores because section 90 applies to them.
- Expect the officer to fix quantities. Section 89 leaves quantities to the proper officer, who considers size, persons and length of the voyage.
For how coastal movements are treated, see sections 91 to 95.
Need help with stores and bonded supply?
Stores supply often involves warehousing, declarations and quantity decisions by the officer. Our team can help you read the sections and organise your records. See our legal consultation page.
Key takeaways
- Section 85: stores may be warehoused without assessment to duty on a declaration that they will be supplied as stores to vessels or aircraft.
- Section 86: stores may stay on board without duty; transfer needs the proper officer's permission.
- Section 87: stores may be consumed on board a foreign-going vessel or aircraft without duty.
- Section 88: section 69 and Chapter X apply to stores with changes, and for aircraft fuel and lubricating oil the whole of the duty replaces ninety-eight per cent in section 74(1).
- Section 89: Indian-made stores may be exported without export duty in quantities the officer determines.
- Section 90: Navy stores have separate concessions.
- Later Finance Acts may have changed these sections; check before acting.
Read next
- Sections 83 and 84: goods imported or exported by post or courier
- Sections 91 to 95: coastal goods entry, loading and clearance
- Section 74: drawback on re-export of duty-paid goods
- Customs Bonded Warehouse: Sections 57 to 73
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.