The Central Board of Indirect Taxes & Customs (CBIC) noticed unreasonable delay in the antecedent verifications at certain field information. Thus, the board amended the old circular and inserted that the antecedent verification must be completed within 45 days of receipt of the application.
Circular No. 26/2016-Customs, dated June 09, 2016, which provided for a centralised system of antecedent verification of licence applicants under the Public Warehousing Licensing Regulations, 2016, Private Warehousing Regulations, 2016, and Special Warehousing Regulations, 2016, was amended by the Central Board of Indirect Taxes & Customs (CBIC) with Circular No. 05/2023-Customs, dated February 21, 2023, in order to further provide that the antecedent verification must be completed within 45 days of receipt of the application.
A centralised system of antecedent verification of licence applicants under the Public Warehousing Licensing Regulations, the Private Warehousing Licensing Regulations, or the Special Warehousing Licensing Regulations, 2016, is provided for in Paragraph 4.1 of Circular 26/2016-Customs, dated June 09, 2016.
The Comptroller Auditor General (CAG) of India made additional observations regarding the above Circular’s implementation in Report No. 19 of 2022 (Performance Audit), specifically regarding the failure to include certain information in applications for warehousing licences, the annual renewal of solvency certificates, the annual renewal of risk insurance policies, and the erroneous storage of goods in public and private bonded warehouses. The Board orders that it be made sure that the applicant correctly complies with all stipulated requirements and that the officer(s) in question thoroughly inspects them.
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