August 20, 2020: The Central Board of Indirect Taxes and Customs (CBIC) on Monday notified new regulations under customs for manufacture and other operations in bonded warehouses. The new regulations include the Manufacture and Other Operations in Special Warehouse Regulations, 2020; the Special Warehouse (Custody and Handling of Goods) Amendment Regulations, 2020; and the Manufacture and Other Operations in Warehouse (no. 2) Amendment Regulations, 2020.
The Manufacture and Other Operations in Special Warehouse Regulations, 2020 shall be applicable on the units that operate under section 65 of the Act, or the units applying for permission to operate under section 65 of the Act, in a special warehouse licensed under section 58A of the Act. The notification lays down regulations which include eligibility for application for operating under these regulations; grant of permission; Validity of permission; Facilities, equipment, and personnel; Strong-room; Conditions for the transport of goods; Receipt of goods from customs station; Receipt of goods from another warehouse; Receipt of domestically procured goods; Transfer of goods from a warehouse; Removal of resultant goods for home consumption; Removal of resultant goods for export; Conditions for due arrival of goods; Maintenance of records in relation to warehoused goods; Audit; Penalty; and Power to exempt. The Board also notifies Form for section 58A licensed warehouse.
The Special Warehouse (Custody and Handling of Goods) Amendment Regulations, 2020 seeks to amend the Special Warehouse (Custody and Handling of Goods) Regulations, 2016. In the Special Warehouse (Custody and Handling of Goods) Regulations, 2016, after regulation 12, the amendment inserts the Non applicability of regulation in certain cases, which says, “Nothing contained in these regulations shall apply to a warehouse licensed under Section 58A of the Act and operating under section 65 of the Act.” The Manufacture and Other Operations in Warehouse (no. 2) Amendment Regulations, 2020, seeks to amend the Manufacture and Other Operations in Warehouse (no. 2) Regulations, 2019.
In the Manufacture and Other Operations in Warehouse (no.2) Regulations, 2019 for regulation 3, “these regulations shall apply to, (i) the units that operate under section 65 of the Act, or (ii) the units applying for permission to operate under section 65 of the Act, in a warehouse licensed under section 58 of the Act,” shall be substituted.
