Central Board of Indirect Taxes and Customs has launched a revamped and streamlined programme to attract investments into India and strengthen ‘Make in India’ through manufacture and other operations under the bond scheme, of Customs Act, 1962.
The Section enables the conduct of manufacture and other operations in a customs bonded warehouse.
The scheme has been modernized with clear and transparent procedures, simplified compliance requirements ICT-based documentation and account keeping, by the issue of Manufacture and Other Operations in Warehouse Regulations 2019.
A single application cum approval form is prescribed for uniformity of practice. The jurisdictional Commissioner of Customs will function as a single point of approval to set up and oversee the operations of such units. There is no geographical limitation on where such units can be set up. The unit can import goods (both inputs and capital goods) under a customs duty deferment program.
The duties are fully remitted if the processed goods are exported. There will be no interest liability and units will benefit through improved liquidity. GST compliant goods can be procured from the domestic market for use in manufacturing and other operations in a section 65 unit. A single digital account has been prescribed for ease of doing business and easy compliance.
The scheme will also enable efficient capacity utilization, as there is no limit on the quantum of clearances that can be exported or cleared to the domestic market.
CBIC has collaborated with Invest India to launch a dedicated microsite for providing information and promoting the scheme and for the facilitation of investors.
The scheme is expected to play a critical role in promoting investments in India and in enhancing ease of doing business. It can enable the ‘Make in India’ programme, encourage exports, create hubs for electronics assembly, repair and refurbishment operations, inward and outward processing, facilitate global e-commerce hubs etc.