Provisions of Section 65 of the Customs Act, 1962 for Manufacturing or other operations undertaken in Customs Bonded Warehouses

Manufacturing in bonded warehouses: combined recordkeeping and export/domestic clearance rules with GST and duty obligations.

Applicants for manufacturing or other operations in bonded warehouses must hold a private bonded warehouse licence and use a single application process; licensees must maintain consolidated digital accounts in the Annexure B format (combining MOOWR and Warehouse Regulations data), execute the prescribed triple duty bond, and submit monthly returns. Exported resultant products require a shipping bill and warehoused removal procedures with no import duty on contained inputs; domestic clearance is a taxable supply under GST, requiring an ex-bond bill of entry, payment of GST and import duties on contained inputs, and reflection of transactions in Annexure B.