Manufacturing and other operations undertaken in bonded warehouses under Section 65 of the Customs Act, 1962

Job work in bonded warehouses clarified: inputs may be sent out, tooling allowed, and duties governed on consumption and export.

Clarifies that only inputs may be sent from a Section 65 unit for job work while capital goods may be sent out only for repair with bond officer permission; job work requires prior deposit and accounting of imported goods, identification/correlation after job work, return/export/clearance under MOOWR procedures, duty treatment of scrap, timelines aligned with GST, and maintenance of prescribed accounts. The bond remains in force and violations trigger deemed home-consumption clearance with duties, interest and penalties. Section 65 units may perform job work for others and may source goods from SEZ/FTWZ following applicable procedures.