Manufacturing under Bonded Warehouse Dr M.S

Transcript:Manufacturing under Bonded Warehouse Dr M.S:
Manufacturing under Bonded Warehouse Dr M.S Krishna Kumar, Advocate MANUFACTURING UNDER BONDER WAREHOUSE Reasons for importer opting for Warehousing Importer may not like to clear goods due to saleability, market price, customer requirements, paucity of funds etc – hence prefer to warehouse goods Some imported goods are warehoused for supplies to EOU/STP/SEZ etc Duty Free shops at international airports warehouse goods before selling to international travellers Imported goods allowed to be cleared without payment of duty to warehouse- duty paid at the time of clearance from warehouse Time limit for warehouse with or without interest prescribed – provisions contained in Chapter IX of CA 1962 Public Warehouse & Private Warehouse Public Warehouses: In terms of Sec.57 of CA 1962 the Principal Commr of Customs may subject to such conditions prescribed licence a Public Warehouse where dutiable goods may be deposited Criteria for licence (a) citizen of India or Entity incorporated in India (b) submits undertaking to comply with terms & conditions (c) furnishes solvency certificate of scheduled bank for 2 crore ( solvency not applicable to undertaking of Central Govt/State Govt or Ports Private Warehouses: In terms of Sec.58 of CA 1962 Principal Commr of Customs may licence private bonded warehouse where dutiable goods imported by or on behalf of the licensee may be deposited Removal of Goods for deposit in warehouse Sec.60 Applicant to provide (a) all risk insurance policy to cover calamities, riots, fire, theft, pilferage, commercial crime etc – equivalent to duty involved on goods stored (b) give an Undertaking binding himself to pay duties, interest, fines and penalties payable as per Sec.73 A(3) of the CA 1962 (c) appoint a person who has sufficient experience in warehousing operations Section 60 of CA 1962 Proper officer may by order permit removal of goods from customs station for deposit in warehouse- such order made electronically in customs automated system on the basis of risk evaluation – When order u/s 60(1) is made , goods shall be deposited in the manner prescribed Owner’s right to deal with warehoused goods: (a) inspect the goods; (b) deal with their containers as may be necessary to prevent loss or deterioration or damage to the goods; (c) sort the goods; or (d) show the goods for sale Warehouse period – Sec.61 In case of capital goods for use in 100% EOU/STP/EHTP for mfg operations u/s 65 till their clearance from warehouse Other than