TaxTMI 
TaxTMI 
TaxTMI 
Procedure to be followed in cases of manufacturing or other operations undertaken in bonded warehouses under section 65 of the Customs Act
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....edictability and to facilitate investments, Board has decided to issue a revised circular along with the Manufacture and Other Operations in Warehouse Regulations 2019 (no. 2 regulations), issued vide Notification No. 69/2019-Customs (N.T.) dated 01.10.2019, hereinafter referred to as, "MOOWR, 2019". Circular 38/2018-Customs stands consolidated and integrated into this Circular. 2.1 MOOWR, 2019 and this circular covers the procedures and documentation for units operating under Section 65 in a comprehensive manner, including application for seeking permission under section 65, provision of execution of the bond by the licensee, receipt, storage and removal of goods, maintenance of accounts, conduct of audit etc. 3. Consequently, the Warehouse (Custody and Handling of Goods) Regulations, 2016, and the Warehoused Goods (Removal) Regulations, 2016, which were hitherto governing the procedure for custody and handling of goods in and removal of goods from public and private bonded warehouses, have been amended vide Notification 70/2019-Customs (N.T.) and 71/2019-Customs (N.T.) both dated 01.10.2019 to exclude their application for warehouses operating under section 65. The said regula....
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....respect of the imported goods contained in the, resultant product as per the provisions of section 69 of the Act. 8. To the extent that the resultant product (whether emerging out of manufacturing or other operations in the warehouse) is cleared for domestic consumption, such a transaction squarely falls within the ambit of "supply" under Section 7 of the Central Goods and Service Tax Act, 2017 (hereinafter referred to as the, "CGST Act"). It would therefore be taxable in terms of section 9 of the CGST Act, 2017 or section 5 of the Integrated Goods and Services Tax Act, 2017 depending upon the supply being intra-state or inter-state. The resultant product will thus be supplied from the warehouse to the domestic tariff area under the cover of GST invoice on the payment of appropriate GST and compensation 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. As per MOO....
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....sufficient to control access to the warehouse, provide secure storage of the goods and ensure compliance to the regulations. Thus, the regulations do not mandate that a structure fully closed from all sides is a pre-requisite for grant of license. What is important is that the site or building is suitable for secure storage of goods and discharge of compliances, such as proper boundary walls, gate(s) with access control and personnel to safeguard the premises. Moreover, depending on the nature of goods used, the operations conducted and the industry, some units may operate without fully closed structures. Therefore, Principal Commissioner/Commissioners should take into consideration the facilities, equipment and personnel put in place for secure storage of goods, while considering grant of license. 14. The issue of procurement of imported goods that are exempt from duty or are chargeable to nil rate of duty into a warehouse operating under section 65 has also been raised. The objective of section 65 is to enable manufacture and other operations in customs bonded warehouses. For this purpose, the units should be able to procure required raw materials, consumables, capital goods etc....
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....zed application that an applicant can fill online, upload the supporting documents, submit online and also print the application form. 17. Difficulties faced, if any, in implementation of this Public Notice may be immediately brought to the notice of the Assistant / Deputy Commissioner (Warehouse). 18. Action to be taken in terms of decisions taken in this Public Notice should be considered as Standing Order for the purpose of officers and staff (Dr. D. K. Srinivas) Pr. Commissioner of Customs ============= Document 1 Application for License for a private bonded warehouse under section 58 and permission for manufacturing and other operations under section 65 of the Customs Act 1962. Part I (to be filled by the applicant) 1. Name of the Applicant: 2. PAN No: Annexure- A 3. GSTIN 4. IEC: 5. Constitution of business (Tick as applicable and attach copy) (i) (ii) (iii) (iv) (x) (vi) Proprietorship Partnership Limited Liability Partnership Registered Public Limited Company Registered Private Limited Company Registered Trust (vii) Society/Cooperative society (viii) Others (please specify) Note: Copy of certificate of incorporation along with Memorandum of Obje....
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....ional sheets may be attached). Details of goods: Description of Classification as goods per Customs Tariff Briefly detail, input-out norms (if applicable) Please attach any supporting publication /document, if available. proposed to be imported proposed to be domestically procured intermediate product final product details of waste & scrap In case of any change in the nature of operations subsequent to the grant of permission, the same shall be informed to the Jurisdictional Commissioner of Customs within 15 days. 10. SECURITY FACILITIES AT THE PREMISES, EXISTING OR PROPOSED: (i) Burglar Alarm System: (ii) (iv) CCTV Facility: a. Is there a CCTV monitoring system installed to cover the surrounding area of the site and storage area? b. Please indicate the no. of cameras installed: c. No. of hours/days of recording accessible at any point of time: Security Personnel: a. Details of arrangements for round the clock security provided for the warehouse: b. Name & details of firm contracted for security services: e. No. of personnel to be deployed on each shift for round the clock security: Fire Security: (Please enclose a fire safety audit certificate....
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....tions? Signature: Name: Designation: Date: Part IV (For use by Customs Only) 1. Upon the satisfaction of the Commissioner that the licence may be granted, the following shall be obtained from the applicant (Please refer Regulation 4 of Private Warehouse Licensing Regulations. 2016): (i) Insurance Policy. (ii) Undertaking under section 73A. (iii) Indemnity undertaking. (iv)Bond as per Annexure C to this Circular. (v) Details of Warehouse keeper appointed by the Licensee: (a) Name (b) Address (residential) (c) Tele: (office) (d) Tele: (mobile) (e) E-mail id: (vi) Confirmation that digital signature has been obtained by the warehouse keeper (as per guidance available on ICEGATE website). 2. Licence No. and date of issue: 3. Warehouse Registration Code on ICEGATE (refer Circular 19/2016 dated 20th May 2016): Signature: Name: Designation: Date: 9 Part V (For use by Customs only) (Details of commencement of manufacture or other operations in the Warehouse) 1. Date of verification visit to certify commencement of manufacture or other operations in the Warehouse: 2. Name of the officials who visited the premises: 3. VERIFICATION REPORT: (i) I have verifi....
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.... Imported goods exported us such Bill of entry No. and date Description of goods Quantity with UQC Assessable value 68 69 70 71 72 Duty paid BCD IGST 73 Comp cess 74 Shipping Bill No. and date 75 Description of goods 76 Quantity with UQC 77 Duty involved Assessable Value Comp. BCD KGST cess 78 79 80 81 TREATMENT OF WASTE OR REFUSE ARISING OUT OF MANUFACTURE OR OTHER OPERATIONS WHERE THE RESULTANT PRODUCT IS EXPORTED Quantity of waste or refuse destroyed Duty paid un waste or refuse Duty to be remitted on the quantity of warehoused goods contained in so much of the waste or refuse ( destroyed or cleared as such) Descriptio Hut gouds Quanta y with UQC Assessabl 0 BC value D Duty involved IGS T Comp Descriptio of goods cess Quantit y with UQC Details of Duty and valu e no Challa BC IGS Comp D T Descriptio n of goods CONS Quisti y with UQC Assessabl Duty involved BC KGS Comp value D T cess 82 83 84 85 86 89 90 91 92 93 94 95 96 97 98 99 100 TREATMENT OF WASTE OR REFUSE ARISING OUT OF MANUFACTURE OR OTHER OPERATIONS WHEN THE RESULTANT PRODUCT IS CLEARED FOR HOME CONSUMPTION Duty paid on warehoused go....