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TMI BlogProcedure to be followed in cases of manufacturing or other operations undertaken in Special warehouses under section 65 of the Customs ActX X X X Extracts X X X X X X X X Extracts X X X X ..... rs, Trade Associations / Chamber of Commerce, Members of the RAC/ PGC and the Public is invited to the CBIC's Notification No.75/2020-Customs(N.T.), dated the 17th August, 2020 regarding Manufacture and Other Operations in Special Warehouse Regulations 2020 (hereinafter referred to as the MOOSWR, 2020) and the same were communicated vide this Office Public Notice No.41/2020-Cus., dt.22.09,2020. These Regulations allow manufacturing and other operations in a special warehouse licensed under Section 58A of the Customs Act, 1962, with regard to warehoused goods specified in clause (1) of Notification No. 66/2016-Customs (N.T) dated 14th May, 2020 (herein after referred to as, specified goods ). 2. Further attention is also invited to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion under section 65, if they already have a warehouse licensed under section 58A. 6. For the sake of uniformity, ease of doing business and exercising due diligence in grant of permission under section 65, the form of application to be filed by an applicant before the jurisdictional Principal Commissioner / Commissioner of Customs is prescribed as in Annexure A. The form of application has been so designed that the process for seeking grant of license as a Special Warehouse as well as permission to carry out manufacturing or other operations stands integrated into a single form. The declaration to be made to satisfy regulation 5 of Special Warehouse Licensing Regulations, 2016, and the undertaking to be made by the applicant as per regu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ging out of manufacturing or other operations in the warehouse) is cleared for domestic consumption, such a transaction squarely falls within the ambit of supply under Section 7 of the Central Goods and Service Tax Act, 2017 (hereinafter referred to as the CGST Act ). It would therefore be taxable in terms of section 9 of the CGST Act, 2017 or section 5 of the Integrated Goods and Services Tax Act, 2017 depending upon the supply being intra- state or inter-state. The resultant product will thus be supplied from the warehouse to the domestic tariff area under the cover of GST invoice on the payment of appropriate GST and compensation cess, if any. As regards import duties payable on the imported goods contained in so much of the resultant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-B would be sufficient for accountal of such goods. 12. As per Regulation 3 (2) (e) (i) of the Special Warehouse Licensing Regulations, 2016, the Principal Commissioner or Commissioner has to be satisfied that the site or building of the proposed special warehouse is suitable for secure storage of dutiable goods. Regulation 8 of MOOSWR 2020, requires the licensee to provide such facilities, equipment and personnel as are sufficient to control access to the warehouse, provide secure storage of the goods and ensure compliance to the regulations. Considering the nature of goods to be warehoused in a special warehouse, the Principal Commissioner or Commissioner has to ensure that the structure is fully closed from all sides, gate(s) with ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ftware while applying in terms of MOOSWR 2020. At the time of inspection, the proper officer should, through a demonstration, check and ensure that the software meets the requirements of Regulation 18(3). In case licensee wishes to use any other software after issuance of license, bond officer should be informed in advance along with similar demonstration. Proper officer should record the observations and confirm that the new software meets the requirements of Regulation 18(3). 15. Section 58A provides that the proper officer shall cause a warehouse licensed under section 58A to be locked and no person shall enter the warehouse except in his presence. It is clarified that this requirement shall be applicable for the strong-room where spe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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