Procedure to be followed in cases of manufacturing or other operations undertaken in bonded warehouses under section 65 of the Customs Act, 1962

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....n in bonded warehouses under section 65 of the Customs Act, 1962'. Section 65 of the Customs Act, 1962 provides for manufacturing as well as carrying out other operations in a bonded warehouse. 2. Under section 65, the Board has prescribed "Manufacture and Other Operations in Warehouse Regulations, 1966" (MOOWR, 1966). These regulations provide for an applicant seeking permission under section 65, conditions of the bond to be executed by the licensee, maintenance of accounts, conduct of special audit and cancellation / suspension of permission etc. 3. While Regulation (3) provides for the data elements to be obtained from the applicant seeking permission "to undertake any manufacturing process or other operations&quot....

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....nd furnish the same to the Bond Officer on monthly basis digitally. Therefore, a licensee carrying out manufacturing or other operations in a bonded warehouse under Section 65 becomes obligated to maintain accounts as per MOOWR, 1966 and at the same time also maintain records as private bonded warehouse. For the ease of doing business, it has been decided that a licensee operating under Section 65, shall not be required to maintain two sets of records. Henceforth, the licensees manufacturing or carrying out other operations in a bonded warehouse shall be required to maintain records as per the form prescribed under this Circular (Annexure B), which combines data elements required under MOOWR,1966 and Warehouse ( Custody and Handling of Good....

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....mpensation cess, if any. As regards import duties payable on the imported goods contained in so much of the resultant products are concerned, same shall be paid at the time of supply of the resultant product from the warehouse for which the licensee shall have to file an ex-bond Bill of entry and such transactions shall be duly reflected in the accounts prescribed under Annexure B. 7. For waste or refuse arising out of manufacture and other operations in relation to the resultant products cleared for home consumption, import duty on the quantity of the warehoused goods contained in such waste or refuse shall be paid as per clause (b) to sub-section (2) of section 65. 8. For waste or refuse arising out of manufacture and other operations....