What a bonded warehouse is, and why goods are moved there
A bonded (customs) warehouse is a licensed facility where imported goods can be stored without clearing them for home consumption. The importer executes a bond with Customs, and duty is either deferred or secured. For furniture waiting on a BIS licence, moving goods from the port or ICD into a warehouse can stop container detention and port ground rent from running, and gives time to resolve the licence. Under section 61, goods other than those for export-oriented units can generally stay for up to one year from the warehousing order, which the Commissioner can extend; interest on the duty becomes payable after 90 days. Warehouse rent is charged by the warehouse operator. Whether goods that do not meet a QCO can later be cleared from the warehouse for sale without a licence is unclear, so warehousing buys time; it does not by itself solve the BIS problem.
Re-export: sending the furniture back
If the manufacturer cannot get a BIS licence in reasonable time, the importer can apply to re-export the goods to the supplier. From a warehouse, section 69 of the Customs Act allows re-export without payment of import duty. Where duty has already been paid on a Bill of Entry, the position on refunds depends on the facts and should be checked with a customs broker. Re-export does not always end the matter: in Scania Commercial Vehicles v. Commissioner (CESTAT, June 2024) the tribunal upheld a redemption fine even though the goods were re-exported, while in Goyal Trading v. Commissioner, Nhava Sheva-III (CESTAT Mumbai, 2023) the fine and penalties were set aside. Freight back, handling and the supplier's cooperation all add cost and time. For a buyer, re-export usually means the order will not be delivered, so the refund conversation should start early.
Confiscation, redemption fine and penalty
Section 2(33) of the Customs Act defines prohibited goods to include goods whose import is subject to conditions that were not met. Tribunals have treated imports made without a required BIS certification as prohibited goods liable to confiscation under section 111(d). Confiscation does not always mean the goods are lost: for prohibited goods, the officer has discretion under section 125 to allow the owner to redeem them on paying a fine, often on condition that they are re-exported. The Supreme Court in Union of India v. Raj Grow Impex (2021) confirmed that this is a discretion, not a right. A penalty under section 112 can also be imposed on the person responsible for the improper import. Separately, the BIS Act provides for imprisonment of up to two years and fines for contravening a Quality Control Order. How any case is decided depends on its facts.
Demurrage, detention and ground rent: who charges what
Three different charges are often all called "demurrage". Detention is charged by the shipping line for keeping its container beyond the free days. Ground rent or storage is charged by the port, ICD or container freight station (CFS) for the space. Warehouse rent is charged by a bonded warehouse once goods are moved there. Under regulation 6(1)(l) of the Handling of Cargo in Customs Areas Regulations 2009, a custodian may not charge rent or demurrage on goods seized, detained or confiscated by the proper officer; whether goods merely awaiting a BIS licence fall within that is unclear, and shipping-line detention is a separate contract. Every legitimate charge comes with an invoice from the party that levies it. If a buyer is being asked to share these costs, ask to see the invoices.
How long goods can sit, and what happens if nobody acts
Time matters. Under section 48, goods not cleared, warehoused or transhipped within 30 days of unloading may be sold by the custodian after notice to the importer, with the proceeds applied to charges. That is why importers should take a formal step, such as applying to warehouse the goods or to re-export, rather than letting a container sit. In a bonded warehouse the one-year period and the interest after 90 days both keep running. For buyers, the practical point is simple: ask the importer which of these routes they have chosen, and when the next decision point is. As of 28 September 2026, no extension of the furniture deadline or port-relief notification had been published, and the June 2026 Transition Facilitation Order does not provide clearance for goods already shipped.