TMI BlogManufacturing and other operations undertaken in bonded warehouses under Section 65 of the Customs Act, 1962X X X X Extracts X X X X X X X X Extracts X X X X ..... Central tax, All Principal Director Generals/ Director Generals under CBIC. Subject: Manufacturing and other operations undertaken in bonded warehouses under Section 65 of the Customs Act, 1962-reg. Madam/Sir, Section 65 of the Customs Act, 1962 provides that the owner of any warehoused goods may carry on any manufacturing process or other operations in the warehouse in relation to such goods, with the permission of the Principal Commissioner of Customs or Commissioner of Customs and subject to such conditions as may be prescribed. Manufacture and Other Operations in Warehouse (no.2) Regulations 2019 , were issued vide Notification No.69/2019-Customs (N.T.) dated 01.10.2019 , hereinafter referred to as, MOOWR, 2019 pre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure or other operations. Thus, only inputs are allowed to be sent out from a Section 65 unit for job work. The capital goods can be sent outside the Section 65 unit for repair , with the permission of the bond officer. The job work shall be subject to the following conditions: (i) The goods upon import should be first deposited in the Section 65 premises and duly accounted for before the same is sent for job work. (ii) It should be possible to establish the identity/ correlate the goods after job work with those sent for job work. (iii) On completion of the job work, the goods can be brought back to the Section 65 unit or exported/ cleared to DTA from the job worker's premises. In case the goods are exported/ clea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions. It may also be noted that the bond to be executed by a Section 65 unit, prescribed through the aforementioned circular, stays in full force notwithstanding the removal of goods for job work from a Section 65 unit. In case of violation of any of the above provisions, the goods shall be deemed to be cleared for home consumption on the date of clearance of the goods for job work. The applicable duties, interest and penalties shall be reckoned accordingly. (ii) Job work for others by a Section 65 unit: Trade has sought clarity on whether the Section 65 unit can itself carry out job work for other units and the procedure to be followed for the same. Clarification: The issue has been examined with a view to enhanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ating under Section 65 . Moreover, the units are GST registrants, which are also allowed to procure goods from SEZ/FTWZs. In view of the foregoing, it is clarified that a Section 65 unit may source capital goods or inputs from a SEZ/FTWZ, following the applicable procedures. 4. The above provisions may be given wide publicity through issue of Public Notices. 5. Any difficulties faced in the implementation of this Circular may please be brought to the notice of Board. 6. Hindi version follows. Yours faithfully, (Temsunaro Jamir) Additional Commissioner (ICD) - Circular - Trade Notice - Public Notice - Instructions - Office orders Tax Management India - taxmanagementindia - taxmanagement - taxmanagementi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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