Section 69 of the Customs Act, 1962 applies when imported goods have been warehoused/bonded in India and have not been cleared for home consumption. In simple terms, the goods are still under Customs control, import duty has not been finally paid, and the importer decides to send them back outside India instead of using or selling them domestically.
The provision allows “warehoused goods” to be exported to a place outside India without payment of import duty, provided a shipping bill/bill of export or prescribed form is filed, all payable export duty, penalties, rent, interest and other charges are paid, and the proper officer grants clearance for export.
This is different from cases where goods have already been cleared for home consumption after payment of duty. In such cases, re-export is generally dealt with under refund/drawback provisions, not Section 69.
For Section 69, the essential condition is that the imported goods should remain identifiable and should not have been consumed or diverted into the domestic market. Customs normally verifies the identity, quantity and condition of the goods before allowing export.
Documents generally required include the electronic shipping bill, original import Bill of Entry, import invoice and packing list, export invoice and packing list, a request letter for permission under Section 69, NOC/permission from the warehouse or Customs bond section, RBI permission where applicable, declaration that goods were not consumed or altered, and bond or bank guarantee if demanded by Customs.
The practical procedure begins with an application to Customs for re-export under Section 69. Customs verifies the warehousing records, import documents, identity of goods and bond position. After permission, the exporter files the shipping bill under the correct export procedure, normally without claiming export incentives. The goods are examined, sealed where required, and after the Let Export Order, they are exported out of India.
The Warehouse Regulations also recognise that warehoused goods cannot be removed for export except under an order made by the proper officer under Section 69.
A key advantage of Section 69 is that import duty is not paid because the goods never enter the domestic market. However, Customs may still insist on payment of warehouse rent, charges, penalties or export duty, if applicable. The Government may also impose restrictions where certain warehoused goods are likely to be smuggled back into India.
Therefore, Section 69 is the correct route where imported goods are lying in a bonded warehouse or under Customs bond, have not been cleared for home consumption, and the importer wants to re-export them without paying import duty.
