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BONDED MANUFACTURING UNIT, Customs - Exim - SEZ

Issue Id: - 116559
Dated: 22-7-2020
By:- Vinaykumar Jhawar

BONDED MANUFACTURING UNIT

Contents

Can a unit setup as Bonded Manufacturing Unit, do jow work activity ?

Posts / Replies

Showing Replies 1 to 9 of 9 Records

Page: 1

1 Dated: 22-7-2020
By:- KASTURI SETHI

Is the manufacturing unit EOU ?

2 Dated: 22-7-2020
By:- Vinaykumar Jhawar

SIR IT IS BONDED MANUFACTURING UNIT

3 Dated: 22-7-2020
By:- Mahir S

Vinaykumar ji,

Please study Manufacture and Other Operations in Warehouse (no. 2) Regulations, 2019. Notification 69/2019-Customs (N.T.) dated the 1st October, 2019 and Board Circular No.34/2019 - Customs dated 01.10.2019 and try to locate your answer.

If any issue, then do let us know.

4 Dated: 22-7-2020
By:- YAGAY andSUN

In addition to above reply, you may find following link useful to understand it in a better manner.

https://www.pwc.in/assets/pdfs/trs/indirect-tax/customs-bonded-warehouse.pdf

5 Dated: 22-7-2020
By:- KASTURI SETHI

After in agreement with the replies given by the experts, I further opine that bonded manufacturing unit is allowed to act as bonded warehouse. So in terms of Section 65 (1) of Customs Act, 1962 , the owner of bonded manufacturing unit/bonded warehouse is required to obtain permission from the Principal Commissioner of Customs or Commissioner of Customs to carry out job work activity. In my opinion, job-work activity is covered under the phrase,"Other Operations" mentioned in Section 65 (1) of the Customs Act.

6 Dated: 23-7-2020
By:- Vinaykumar Jhawar

https://www.linkedin.com/pulse/bonded-manufacturing-newly-improvised-scheme-boost-make-divay-pranav

Sir, please go through the article whereby in figure II, they have stated that service operations are not allowed in Bonded Manufacturing Unit.

7 Dated: 23-7-2020
By:- Vinaykumar Jhawar

Dear Mihirji,

I have went through the provisions, but it is not clear whether job work is allowed in the area.

8 Dated: 24-7-2020
By:- KASTURI SETHI

Bonded manufacturing is allowed to work as bonded warehouse. Bonded warehouse can undertake manufacturing activity with permission from the Principal Commissioner or Commissioner Customs. If you take the permission for job work from the competent authority there will be no objection or risk. Also go through para 6.14(b) of FTP. 'Other Operations' can cover it. Any article is opinion of author. It is my views.

9 Dated: 26-7-2020
By:- YAGAY andSUN

Job work related operations are also allowed.

Page: 1