Procedure to be followed in cases of manufacturing or other operations undertaken in bonded warehouses under section 65 of the Customs Act

Bonded warehouse manufacture permissions enable integrated licensing, recordkeeping and duty/GST compliance for export or domestic clearance.

Prescribes an integrated procedure under MOOWR, 2019 and section 65 requiring a private bonded warehouse licence (section 58) and use of a unified application form; mandates security, fire safety, surveillance and personnel sufficient for secure storage; requires maintenance of prescribed digital accounts (Annexure B) and execution of a triple-duty general bond (Annexure C). Exports of resultant products require shipping bill and GST invoice with no customs duty on imported inputs; domestic clearances are taxable supplies under GST with ex-bond bill of entry and duty payment on contained imported goods. Exempt or nil-rated imports may be brought in on a home-consumption bill of entry and are not warehoused goods. Prior permission for removals is not essential where prescribed documentation is filed and duties paid.