TMI BlogProcedure to be followed in cases of manufacturing or other operations undertaken in special warehouses under section 65 of the Customs ActX X X X Extracts X X X X X X X X Extracts X X X X ..... (1) of Notification No. 66/2016-Customs (N.T) dated 14th May, 2020 (herein after referred to as, specified goods ). 2 MOOSWR, 2020 and this Circular cover the procedures and documentation for a section 58A warehouse, operating under Section 65 of the Act, in a comprehensive manner including application for seeking permission under section 65 , provision of execution of the bond and security by the licensee, receipt, storage and removal of goods, maintenance of accounts, conduct of audit etc. 3. Further, the Special Warehouse (Custody and Handling of goods) Regulations, 2016 , which were hitherto governing the procedure for custody and handling of goods deposited in and removed from a Special Warehouse have been amended, vide Notification No.77/2020- Customs (N.T) dated 17th August, 2020 , to exclude their application for such warehouses operating under section 65 . The said regulations will continue to be applicable for special warehouses, not operating under Section 65 . 4. An applicant desirous of manufacturing or carrying out other operations on specified goods in a bonded warehouse under section 65 , must have the premises licensed as a special warehouse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 MOOSWR, 2020, the applicant shall also inform the input-output norms for raw materials and final products and sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... moval of goods have to be provided. 12. As per Regulation 4(2)(i) of MOOWSR 2020, a licensee is required to maintain accounts of receipt and removal of goods in digital form in such format as may be specified and furnish the same to the bond officer on monthly basis digitally. This information shall be communicated from the registered email address of a licensee to the designation based official email id accessed by the bond officer. Appointment of any new warehouse keeper should also be intimated along with the monthly returns. Jurisdictional Commissionerate should ensure that such emails are functional and details of same are communicated at the time of issuance of license and also published through public notice. 13. As per Regulation 18(3), the records should be maintained electronically using software which has inter alia features of audit trail and with each event being recorded with time stamp. The licensee is also required to provide details of such software while applying in terms of MOOSWR 2020. At the time of inspection, the proper officer should, through a demonstration, check and ensure that the software meets the requirements of Regulation 18(3). In case license ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Fax: E-mail: 7. Bank Account details: Name of the Bank: Branch name: Account Number: 8. Name, Address DIN (if applicable): [of Proprietor/Partners/Directors etc. (Please attach copies of ID proof)]. 9. Name Designation of the Authorized Signatory: (Please attach copy of Aadhaar Card as proof of ID). 10. Details of existing manufacturing facilities in India and/or Overseas of the applicant firm and of each of its directors/partners/proprietor, as the case may be (please attach separate sheet if required). Part II (to be filled by the applicant) 1. Address of the proposed site or building: 2. Boundaries of the warehouse: (i) North (ii) South (iii)West (iv) East 3. Details of property holding rights of the applicant (please provide supporting document): (i) Owner (ii) Lease/rent 4. Contact details at the site/premises: (i) Tel: (ii) Fax: (iii)Email: (iv) Website, if any: 5. Details of warehouse license issued earlier to the applicant, if any: (i) Date of issue of license: (ii) Commissionerate file No.: (iii)Attach copy of warehouse license. 6. Whether the applicant is a Licensed Cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orage area? b. Please indicate the no. of cameras installed: c. No. of hours/days of recording accessible at any point of time: (iii) Security Personnel: a. Details of arrangements for round the clock security provided for the warehouse: b. Name details of firm contracted for security services: c. No. of personnel to be deployed on each shift for round the clock security: (iv) Fire Security: (Please enclose a fire safety audit certificate issued by a qualified independent agency) 11. Software which will be used in terms of Regulation 18(3): 11. DECLARATION: I/ We declare that: 1. I/We are a registered or incorporated entity in India. 2. I / We have not been declared insolvent or bankrupt by a court or tribunal. 3. I/We have not been convicted for an offence under any law. 4. I/We have neither been penalized or convicted nor are being prosecuted for an offence under the Customs Act, 1962 or Central Excise Act, 1944 or Finance Act, 1994 or 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. 5. There is no bankruptcy or criminal proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applicant (Please refer Regulations 3 and 4 of Special Warehouse Licensing Regulations, 2016): (i) Solvency certificate, where applicable. (ii) Insurance Policy. (iii)Undertaking under section 73A. (iv) Indemnity undertaking. (v) Bond as per Annexure C to this Circular. (vi) 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: 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 verified that the unit has commenced manufacture or other operations. (ii) I have verified that records ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... RESULTANT PRODUCTS (CLEARANCE FOR EXPORT) Resultant products exported Date and time of removal Shipping Bill No. and date GST Invoice No. and date Description of goods Quantity with UQC Assessable Value Export duty Tax paid (if applicable) IGST Comp. cess 28 29 30 31 32 33 34 35 36 Quantity of warehoused goods contained in so much of the resultant products exported Description of goods Quantity with UQC Assessable Value Duty involved BCD IGST Comp. cess 37 38 39 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NG OUT OF MANUFACTURE OR OTHER OPERATIONS WHERE THE RESULTANT PRODUCT IS EXPORTED Quantity of waste or refuse destroyed Duty paid on waste or refuse Description of goods Qua-ntity with UQC Assessable value Duty involved Descri-ption of goods Quantity with UQC value Details of Duty paid BCD IGST Comp. cess Challan no. BCD IGST Comp. cess 71 72 73 74 75 76 77 78 79 80 81 82 83 Duty to be remitted on the quantity of warehoused goods contained in so much of the waste or refuse (destroyed or cleared as such) Description of goods Quantity with UQC Assessable value Duty involved BC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nclude 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 ______day of______ 20____ . WHEREAS the Principal Commissioner or Commissioner of Customs, has decided to grant license to operate a warehouse under Section 58A of the Customs Act; 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 of the 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 goods to be imported by us during the period from _______to______ (both ..... X X X X Extracts X X X X X X X X Extracts X X X X
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