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

Manufacture in special warehouses governed by section 65: integrated licensing, bond and digital records control duty and GST treatment.

Licensed special warehouses under section 58A may undertake manufacturing and other operations under section 65 subject to an integrated application, execution of the prescribed bond and bank guarantee, and compliance with specified security, digital recordkeeping and software requirements. Resultant products exported require shipping bills and GST invoices with no duty on imported inputs under section 69; products cleared domestically attract GST/IGST and ex-bond Bills of Entry to discharge import duties on contained warehoused goods. Annexures prescribe application, inventory registers and bond formats and customs verification procedures.