In-bond manufacturing - Commissioner to grant permission - Customs - F. No. 473/23/2006-LC

In-bond manufacturing - Commissioner to grant permission M.F. (D.R.) Letter F. No. 473/23/2006-LC Dated 18-10-2007 Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi I am directed to refer to the correspondence resting with Board's Circular No. 132/95-Cus., dated 22-12-95 (F. No. 473/61/94-LC) authorizing Commissioners to examine and decide the requests under Section 65 of the Customs Act, 1962 without making any reference to the Board. 2. A representation has been received in the Board stating that while Section 65 of the Customs Act, 1962 empowers Assistant Commissioner/Deputy Commissioner of Customs to sanction in-bond manufacturing process or other operations in a warehouse, Board's Circular No. 132/95-Cus., dated 22-12-95 mentions that the request u/s 65 ibid be considered at the level of Commissioner. Therefore, clarification has been sought as to who is the competent authority to grant permission for in-bond manufacturing u/s 65 ibid. 3. The Board has examined the matter and it is found that by way of executive instruction vide Circular No. 132/95-Cus., dated 22-12-95, the statutory powers entrusted to Assistant Commissioner/ Deputy Commissioner u/s 65 ibid were required to be exercised by Commissioners. Prior to issuance of the said circular, the powers were being exercised by the Board and for administrative convenience, the same were delegated to Commissioner. It is however noticed that different practice is being followed in different Commissionerates. It is, therefore, reiterated that the existing instructions contained in the aforesaid Circular should be followed to ensure uniformity of practice and also to prevent misuse of the facility. 4. It is requested that standing instructions/public notices may be issued for information and guidance of the field staff and trade respectively. 5. The receipt of this letter may please be acknowledged.