Goods exempted under notifications can be brought into bonded warehouses

We refer to Para C.13.1 of the RBI Master Direction no.16/2015-16 dated 1st January 2016 (as amended). It says that Authorised Dealers (ADs) can grant permission for opening/hiring warehouses abroad provided the applicant's export outstanding does not exceed 5 per cent of exports made during the previous financial year.

- T N C RAJAGOPALAN

We refer to Para C.13.1 of the RBI Master Direction no.16/2015-16 dated 1st January 2016 (as amended). It says that Authorised Dealers (ADs) can grant permission for opening/hiring warehouses abroad provided the applicant's export outstanding does not exceed 5 per cent of exports made during the previous financial year. This looks quite unrealistic because 5 per cent of our exports made during the previous year amounts to barely 18.25 days of exports. Any export bill sent even on a D/P basis will take more than that much time to get realised. So, export outstanding will always exceed this limit. We seek your comments.