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Manufacture and Other Operations in Warehouse Regulations

Manufacture and Other Operations in Warehouse Regulations, 2019

Manufacture and Other Operations in Warehouse Regulations, 2019

The Central Board of Indirect Taxes and Customs have notified Manufacture and Other Operations in Warehouse Regulations, 2019, which applies to the units that operate under section 65 in the Customs Act. This new regulation stipulates the changes that apply to the establishment and operation of a customs warehouse. Let us look in detail about the manufacture and other operations in relation to goods in a warehouse in this article.

Eligibility Criteria under these Regulations

The below following persons are eligible to apply for operating under these regulations:

  • According to the Private Warehouse Licensing Regulations, 2016, a person who has been issued with a warehouse licence under section 58 of the Act are eligible to apply under these regulations.
  • A person who applies for a warehouse licence under section 58 of the Act, along with the permit for undertaking manufacturing process or other operations in the warehouse under section 65 of the Act.

Terms and Conditions

In the case, operating under these regulations made to the Principal Commissioner of Customs or the Commissioner of Customs, then the following terms and conditions to be satisfied.

  • To maintain the 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 a monthly basis digitally
  • To execute the bond in such format as would be specified
  • To inform the input-output norms, wherever considered required for the raw materials and final products and to notify the revised input-output norms in case of any change therein.

Grant of permission

On due verification of the application that is made as per the regulation 4, the Principal Commissioner of Customs/Commissioner of Customs, as the case may be, would grant approval to operate under the provisions under these regulations.

To know about the Direct Port Delivery Scheme for Importers

Permit Validity

Any permit that is granted under the regulation 5 would remain valid unless it is cancelled or abandoned, or the license given under section 58 is cancelled or surrendered, as per the provisions of the Customs Act or the rules and regulations.

Warehouse Keepers’ Appointment

A person who has been granted permission under regulation 5 shall appoint a warehouse keeper who has sufficient experience in warehousing operations and customs procedures to discharge functions on his behalf.

The warehouse keeper would obtain a digital signature from the concerned authorities licensed by the Controller of Certifying Authorities for the process filing electronic reports required under the Act or the rules and laws made thereunder.

Facilities, Equipment and Personnel 

A person who has been granted permission under regulation 5 shall provide at the warehouse,

The signage that prominently indicates that the site or building is a customs bonded warehouse

such facilities and equipment are sufficient to control access to the warehouse, provide secure storage of the goods in it and ensure compliance to these regulations by officers of customs.

A computerized system for accounting of receipt, storage, operations and removal of goods

Such facilities and equipment that are sufficient to control access to the warehouse, provide secure storage of the goods in it and ensure compliance to these regulations by officers of customs.

Conditions for Transport of Goods

  • The load section of the means of transport would be securely sealed with a one-time-lock where the goods are transported from the import customs station to a warehouse or from any warehouse to another or from the warehouse to an export customs station.
  • The Principal Commissioner of Customs or Commissioner of Customs proposed that, if having regard to the nature of goods or manner of transport, the permit will be provided for the transportation of such goods without affixing the one-time-lock.
  • The goods to be warehoused from the customs station of import to a warehouse are removed. The one-time-lock under the sub-regulation (1) would be affixed by the concerned officer of customs.
  • The warehoused goods are removed from one warehouse to another, the one-time-lock as per sub-regulation (1) would be affixed by the licensee.
  • The warehoused goods are removed, from the warehouse to an export customs station, the one-time-lock as per sub-regulation (1) shall be affixed by the licensee.

Audit

The concerned officer would conduct audit of a unit operating under section 65 in accordance with the regulations of the Act and the Rules made thereunder.

Penalty

If a person contravenes any of the provisions of these regulations, or abets such contravention or fails to comply with any of the provision of these regulations, he would be liable to a penalty as per provisions of the Act.

Power to exempt

The Board, having regard to the nature of the goods, their manner of transportation or storage, would exempt a class of goods from any of the provisions under these regulations.

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Post by Sinduja Shankar

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