You might be aware that, Central Board of Indirect Taxes and Customs (CBIC) has launched a revamped and streamlined program to attract investments into India and strengthen Make in India. This program is based upon Section 65 of the Customs Act, 1962, which enables conduct of manufacture and other operations in a Customs bonded warehouse.
The above program has been introduced vide the “Manufacture and Other Operations in Warehouse (no. 2) Regulations, 2019, (hereinafter referred to as MOOWR, 2019)” and explained through Circular-34/2019- Customs dated 1st October, 2019 (https://www.cbic.gov.in/htdocs-cbec/customs/cs-circulars/cs-circulars-2019/Circular-No-34-2019.pdf )
Under this program a unit can import goods (both inputs and capital goods) under customs duty deferment with no interest liability. There is no investment threshold or export obligation. The duties are fully remitted if the goods resulting from such operations are exported. Import duty is payable only if the resulting goods or imported goods are cleared in the domestic market (ex-bonding).
As per the CBIC FAQs, the salient features of the program are as follows:
< >No geographical limitation on where such units can be set up.A single application cum approval form for uniformity of practice with a single point of approval to set up the operations of such units.Improved liquidity with deferment of import duty and no interest liability.Allows procurement of GST compliant goods from the domestic market for use in manufacture and other operations in a Section 65 unit.A single digital account for ease of doing business and easy compliance.Enables efficient capacity utilization, as there is no limit on quantum of clearances that can be exported or cleared to the domestic market.FAQ on Manufacture and Other Operations
Members are requested to take note and if interested, may go through the FAQs on MOOWR 2019 available on links provided above.
For further queries, members may contact the concerned port locations for further information/ facilitation. You may also write to us on email id's: email@example.com, firstname.lastname@example.org, email@example.com & firstname.lastname@example.org for records/ further deliberations, if any.
S G Bharadi
Encl:-FAQS on "Manufacture and Other Operations