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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.... followed under Section 65 of the Customs Act, 1962 (hereinafter referred to as the "Act"). 2. Representations have been received from the trade including potential investors seeking clarifications on some issues. With a view to provide clarity and predictability 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 Public Notice. 3. MOOWR, 2019 and this Public Notice 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. 4. 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 goo....
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....that the resultant product manufactured or worked upon in a bonded warehouse is exported, the licensee shall have to file a shipping bill and pay any amounts due. A GST invoice shall also be issued for such removal. In such a case, no duty is required to be paid in respect of the imported goods contained in the resultant product as per the provisions of section 69 of the Act. 9. 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 ar....
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.... Principal Commissioner or Commissioner has to be satisfied that the site or building of the proposed private warehouse is suitable for secure storage of dutiable goods. Regulation 8 of MOOWR 2019 requires the licensee to provide such facilities, equipment and personnel as are 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. 15. The issue of procurement of imported goods that are exempt from duty or are chargeable to nil rate of dut....
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....Industry and Internal Trade, Ministry of Commerce and Industry, Government of India to launch a microsite for the promotion of the scheme and facilitation of investors. The same can be accessed at https://www.investindia .gov.in/banded-manufacturing. The microsite also hosts a digitized application that an applicant can fill online, upload the supporting documents, submit online and also print the application form. 19. All the members of the Regional Advisory Committee, Trade and Industry Associations are requested to circulate the Public Notice among their constituent members for implementation and guidance. 20. 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. 21. Any difficulty, experienced in the implementation, may be brought to the notice of the undersigned. (S.FAHEEM AHMED) Principal Commissioner ============= Document 1 Annexure- A 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 o....
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....lan: What is the type of construction of walls and roof? (vi) Which year has the building been built? Has it been recently remodelled? If so, when? (vii) Identify by location and size all accesses to the site / building to pedestrian and vehicles: (viii) Identify by location and size all other accesses to the building including doors & windows: (ix) Please indicate whether the premises have been authorized for commercial use by local Government authorities? Document 3 9. Goods proposed to be manufactured or other operations proposed to be carried out (if necessary, additional sheets may be attached). Details of goods: Description of Classification as goods per Customs Tariff proposed to be imported proposed to be domestically procured intermediate product final product details of waste & scrap Briefly detail, input-out norms (if applicable) Please attach any supporting publication /document, if available. 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. SECURIT....
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.... Commissioner of Customs. Stamp Date: Place: (Signature of the applicant/authorized signatory) Document 5 Part III 1. Verification of the applicant: (For Use by Customs Only) [verification to be done of the Declaration made by applicant as per serial no.11 of Part - II of the application. Verification to be done by DRI/DGGI. Grant of license may NOT be held up pending verification.] 2. Date of visit to the premises by the bond officer: 3. Findings of the bond officer with respect to security, fire protection, IT enabled inventory management system, type of construction, area available for examination of goods, if required etc. 4. Is the Premises recommended for issue of license as a warehouse along with permission for manufacture or other operations? Signature: Name: Designation: Date: 1. Part IV (For use by Customs Only) 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 un....
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.... BCD KGST Compridas sich with UOC ICD KGST Comp 68 76 77 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 on 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) Quantit Assessabl Descriptio Quantit Assessabl y with Duty involved e n of goods UQC value BC D IGS T Comp Descriptio n of goods Quantit y with Details of Duty paid Duty involved valu Challa BC IGS e Comp - cess UQC n no. D T . cess Descriptio n of goods y with e BC IGS Comp value D T .cess 82 UQC ☠83 84 85 86 87 88 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 goods contained in so much of the waste or refuse Bill of Entry No. and date 101 Description of goods 10....