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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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....ms 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 (Custody and Handling of Goods) Regulations, 2016, and the Ware....
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....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 invoice on the payment of appropriate GST and compensation cess, if any....
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....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 for secure storage of goods, while considering grant of license. 15. The issue o....
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....irculars. 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 private bonded warehouse under section 58 and permission for manufacturing and other operations under section 65....
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....f? (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 & 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) (iii) (iv). CCTV Facility: ....
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....tory 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 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: Document 6 Part V (For use by Customs only) (Details of commencement of manufacture or o....
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....NT 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 Description of goods 54 55 56 with UQC 57 Value Tax paid GST Comp. Bill of Entry No. and date Description of goods consumption Quantity with UQC Duty paid Assessable Value BCD IGST Comp. cess cess 58 59 60 61. 62 63 64 65 66 67 IMPORTED GOODS CLEARED AS SUCH Imported goods cleared as such for home consumption Imported goods exported as such Bill of entry No. and date 68 Description of goods 69 Duty paid Quantity with UQC 70 Assessable value 71 Comp. 72 BCD IGST 73 cess 74 Shipping Bill No. and date 75 Duty involved Description of goods 76 Quantity with UQC 77 Assessable Value BCD IGST Comp. cess 78 79 80 81 3 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....
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....above written bond is such that, if we: to (1) comply with all the provisions of the Customs Act, 1962, Central Goods and Services Tax Act, 2017 or Integrated Goods and Services Tax Act, 2017 or Goods and Services Tax (Compensation to States) Act, 2017 and the rules and regulations made thereunder in respect of such goods; (2) pay in the event of our failure to discharge our obligation, the full amount of duty chargeable on account of such goods together with their interest, fine and penalties payable under section 72 of the Customs Act, 1962 in respect of such goods; (3) pay all penalties and fines incurred for contravention of the provisions of the Customs Act, 1962, Central Goods and Services Tax Act, 2017 or Integrated Goods and Services Tax Act, 2017 or Goods and Services Tax (Compensation to States) Act, 2017 and the rules or regulations made thereunder, in respect of such goods; Then the above written bond shall be void and of no effect; otherwise the same shall remain in full force and virtue. Document 10 IT IS HEREBY AGREED AND DECLARED that: (1) the Bond shall continue in full force notwithstanding the transfer of goods to any other premises for job work; ....