TMI BlogProvisions of Section 65 of the Customs Act, 1962 for Manufacturing or other operations undertaken in Customs Bonded WarehousesX X X X Extracts X X X X X X X X Extracts X X X X ..... oncerned are invited to Board s Circular No.38/2018 Customs dated 18.10.2018 providing for procedure to be followed in cases of manufacturing and other operations undertaken in bonded warehouses under section 65 of the Customs Act, 1962. 1. Section 65 read with Manufacture and other operations in warehouse Regulation 1966 (hereinafter referred to as MOOWR 1966) provide for an application seeking permission under section 65 and also for the condition of the Bond to be executed by the licensee, maintenance of the accounts, conduct of special audit and cancellation / suspension permission etc. 2. It is to be noted that an applicant desirous of manufacturing or carrying out other operations in the bonded warehous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... licensees manufacturing or carrying out other operations in a bonded warehouse shall be required to maintain records as per the form prescribed under the said Circular (Annexure B), which combines data elements required under MOOWR, 1966 and Warehouse (Custody and Handling of Goods) Regulations, 2016 Sub-section 59 of the Customs Act requires the owner of the warehoused goods to execute a triple duty bond for the warehoused goods. Such bond shall be executed in the form prescribed under the said Circular as per Annexure C. 4. To the extent that the resultant product manufactured or worked upon in a bonded warehouse in exported, the licensee shall have to file a shipping bill and follow the procedure prescribed under the Wareho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esultant 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. 7. For waste or refuse arising out of manufacture and other operations in relation to the resultant products cleared for export, where import duty on the waste or refuse is paid as per proviso to clause (a) to sub-section (2) of section 65, the same shall be deposited manually through a Challan. The records maintained as per Annexure-B would be sufficient for accountal of such goods. 8. It may be noted that units operating under section 65 read with section 58 of the Customs Act, are entitled to import capital goods, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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