Analysis of Manufacture and Other Operations in Warehouse (no. 2) Regulations, 2019

Central Board of Indirect Taxes and Customs (CBIC) has recently issued Notification Notification 69/2019-Customs (N.T.) dated 01 October 2019. Please find below brief of the update for your reference.

This notification has been issued to issue new regulation namely “Manufacture and Other Operations in Warehouse (no. 2) Regulations, 2019“. This amendment has been notified with an intent to harmonize the operational aspect of warehouses. This revision shall come into force on the date of its publication in the official gazette.

These regulations shall apply to units permitted to Manufacture and undertake other operations in a warehouse (as per section 65 of the Customs Act).

Eligibility for application for operating under these regulations:

a person who has been granted a licence for a warehouse under section 58 of the Act, in accordance with Private Warehouse Licensing Regulations, 2016.
a person who applies for a licence for a warehouse under section 58 of the Act, along with permission for undertaking manufacturing or other operations in the warehouse under section 65 of the Customs Act.

That means, warehouses where manufacturing processes being undertaken will have to follow these regulations which are common to all warehouses licensee under Customs act. Below are some of the important points from the regulations:

Conditions for Transport of goods:

Goods transport from warehouse to warehouse and Custom Station shall be securely sealed with a one-time-lock.
Goods removed from warehouse to custom station of import, such Lock shall be affixed by the proper officer of customs.
Goods removed from warehouse to warehouse, such Lock shall be affixed by licencee.

Receipt of goods from customs station / other warehouse:

Verify the one-time-lock affixed
Report any discrepancy
Endorse the bill of entry for warehousing

Removal of resultant goods for home consumption/ Export:

A licensee may remove the resultant goods from warehouse for home consumption / Export
The licensee shall retain a copy of the bill of entry filed and take into record the goods removed.

Also, Notification 70/2019-Customs (N.T.) and Notification 71/2019-Customs (N.T.) has been issued to clarify that Warehouse (Custody and Handling of Goods) Regulations, 2016 and Warehoused Goods (Removal) Regulations, 2016 shall not apply to warehouses operating under section 65 of the Customs Act.

We have linked respective notification in its subject line. Feel free to connect if you require any additional information / clarification in this regard.

Tags: Custom Duty Notifications

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Amrin has 7+ years experience in the field of Indirect Tax advisory and compliance including working with KPMG before she commenced her journey as an entrepreneur. In her new role from May 2017, she has been providing Business and Tax Advisory Services to various organisations. Her skill sets to View Full Profile