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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.... (N.T) dated 19th June, 2019 and Circular 38/2018-Customs dated 18.10.2013 issued to streamline the procedure, documentation and compliances to be 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, SMOOWR, 2019'. Circular 38/2018-Customs stands consolidated and integrated into this Circular No. 34/2019-customs dated 01.10.2019. 3. 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. 4. Consequently, the Warehouse (C....
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....housed goods. Thus, the bond prescribed under this Circular as per Annexure C serves the requirements of both MOOWR, 2019 and Section 59 of the Customs Act. 8. To the extent 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 ....
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....s is being allowed to enable optimum utilization of available infrastructure. 14. As per Regulation 3 (2) (e) (i) of the Private Warehouse Licensing Regulations, * 2016, the 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 ....
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....the facility made available under circular 26/2017 customs dated 01.07.2017 and its linked circulars. 17. Board has partnered with Invest India under the Department for Promotion of 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/bonded-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. 18. All Exporters , Customs Brokers and Trade Associations are requested to give wide publicity to the contents of this Public Notice among their members in particular and Trade in general. 18. Difficulty, if any, should be brought to the notice of Additional Commissioner, Air Cargo Exports, New Customs House, New Delhi. This issues with the approval Of the Commissioner of Customs, Air Cargo Exports, New Delhi. Hindi Version follows. (K R Madhar) Addl. Commissioner of Customs, Air Cargo Export, ============= Document 1 Annexure- A Application for License for a p....
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....office) What is floor area? (ii) Number of stories? (iii) Total area (or cubic capacity) available for storage? (iv) Identify and mark area(s), occupied by third parties in the ground plan: (v) 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 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 & scr....
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....cument 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 undertaking. (iv) Bond as per Annexure C to this Circular. (v) Details of Warehouse keeper appointed....
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.... No. Name & GSTIN (if address applicable) Date and Description Quantity with value time of return of goods UQC Delivery Challan No. 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 Date and time of removal 39 Shipping Bill No. and date 40 Resultant products exported RESULTANT PRODUCTS (CLEARANCE FOR EXPORT) Quantity of warehoused goods contained in so much of the resultant products exported GST Invoice No. and Description of Quantity with goods Assessable Export Value duty Tax paid (if applicable) Description UQC IGST Comp. of goods Quantity with UQC Duty involved Assessable Value date cess 41 42 43 44 45 46 47 48 49 50 51 BCD IGST 52 Comp. cess 53 Document 8 RESULTANT PRODUCTS (CLEARANCE FOR HOME CONSUMPTION) Resultant products cleared for home consumption Warehoused goods contained in so much of the resultant products cleared for home Date and time of removal GST Invoice No. and date Quantity Descripti....
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....Import-Export Code No. "importer", (which expression shall include our successors, heirs, executors, administrators and legal representatives) hereby jointly and severally bind ourselves to the President of India hereinafter referred to as the "President" (which expression shall include his successors and assigns) in the sum of Rs. (please fill amount in words) to be paid to the President, for which payment well and truly to be made, we bind ourselves, our successors, heirs, executors, administrators and legal representatives firmly by these presents. Sealed with our seal(s) this_ WHEREAS the Principal Commissioner or Commissioner of Customs, has decided to grant license to operate a warehouse under Section 58 of the Customs Act; day of 20 AND WHEREAS the Principal Commissioner or Commissioner of Customs, has decided to permit carrying out manufacture and other operations in the warehouse under Section 65 ofthe Customs Act; AND WHEREAS the Assistant/ Deputy Commissioner of Customs has given permission to enter into a General Bond for the purpose of sub-section (2) of Section 59 of the Customs Act, in respect of warehousing of go....