Clarification on warehousing of chemicals under Para 2.36(a)
Clarification on Warehousing of Chemicals under Para 2.36(a) of the Foreign Trade Policy (FTP) 2023 – reg.
Para 2.36 of the Foreign Trade Policy (FTP) 2023 provides as follows:
(a) Private/Public bonded warehouses may be set up in the Domestic Tariff Area (DTA) in accordance with the rules, regulations, and notifications issued under the Customs Act, 1962. Any person may import goods, except prohibited items, arms and ammunition, hazardous waste, and chemicals, and warehouse them in such bonded warehouses.
(b) Such goods may be cleared for home consumption in accordance with the provisions of FTP and against Authorisation, wherever required. Applicable customs duties shall be paid at the time of clearance.
(c) Clearance of warehoused goods shall be governed by the provisions of the Customs Act, 1962.
- Representations have been received from stakeholders regarding the interpretation of Para 2.36 of FTP 2023. Industry has highlighted that hazardous chemicals such as industrial raw materials, intermediates, specialty chemicals, petrochemicals, and pharmaceutical inputs are integral to India’s trade value chain.
- Stakeholders have further submitted that exclusion of “hazardous chemicals” under Para 2.36(a) leads to inconsistency, as handling and storage of such cargo are already permitted at ports and Container Freight Stations (CFS) under established regulatory frameworks. It has been represented that permitting warehousing of such chemicals is essential for supply chain continuity, industrial productivity, and trade competitiveness.
- In exercise of powers conferred under Para 2.58 of FTP 2023, it is hereby clarified that the exclusion of “hazardous chemicals” in Para 2.36(a) was primarily intended to prevent unregulated warehousing of hazardous waste and chemicals along with other prohibited items specified therein.
- Accordingly, in order to facilitate trade in the true spirit of Para 2.36 of FTP 2023, read with the relevant provisions of the Customs Act, 1962 (as amended), it is clarified that warehousing of industrial chemicals is permitted in public and private bonded warehouses under Para 2.36(a) of FTP 2023, subject to the following conditions:(i) The warehouse facility must comply with all applicable domestic laws, rules, and regulations relating to safe storage and handling of chemicals. The competent authority responsible for approval/licensing under the Customs Act, 1962 shall ensure compliance with these requirements.(ii) The chemicals proposed to be warehoused must comply with all applicable conditions under the Import and Export Policy notified under the Foreign Trade (Development and Regulation) Act, 1992, and the relevant provisions of the Customs Act, 1962 and rules/regulations made thereunder, as amended from time to time.
- All other provisions of Para 2.36 of FTP 2023 shall continue to apply and must be duly complied with.
This issues with the approval of the Competent Authority.
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