Establishment of bonded warehouses within Export Processing Zones for stock and sale of raw materials/components to 100% EOU/EPZ Units - Customs - F. No. 473/19/92-LC

Establishment of bonded warehouses within Export Processing Zones for stock and sale of raw materials/components to 100% EOU/EPZ Units F. No. 473/19/92-LC Dated 13-5-1992 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Establishment of bonded warehouses within Export Processing Zones for stock and sale of raw materials/components to 100% EOU/EPZ Units - Regarding. With a view to make available raw materials and components at a short notice for 100% Export Oriented Undertakings and Units located within the Export Processing Zones, Government have decided to permit setting up of bonded warehouses (public or private) within EPZs for stock and sale of duty free raw materials and components to such 100% EOUs/Units in the EPZs. The salient features of the scheme are indicated below:- (a) The bonded warehouses will be located within the Export Processing Zones. To begin with permission may be granted to set up only one such warehouse in each of the ETZ/EPZs. Selection may be made after careful scrutiny of the applicants. (b) Imports for such bonded warehouses shall be permitted against specific import licences indicating the description of items and quantities, thereof which will be determined by the Commerce Ministry in terms of specific requirements of the units in the EPZs and 100% EOUs. Items not required by the units will not be allowed to be imported. (c) Goods imported by such warehouse keepers shall be permitted to be cleared for supplies to units in the same free trade zone/export processing Zones or to units in other Zones, or to 100 EOU's outside the Zones. Sale of such goods will not be permitted to units in the . domestic tariff area. Movement of goods shall be covered by the usual bond to bond transfer procedures subject to necessary bonds and bank guarantees. (d) The goods imported and stored in a bonded warehouse located in an Export Processing Zone or in any hundred per cent export oriented undertaking would be eligible for warehousing period of one year vide notification No.36/92-Cus. dated 30-4-1992.