Circular No. 03/2019-Customs Dated 31/01/2019
Procedure to be followed in cases of manufacturing or other operations undertaken in bonded warehouses under section 65 of the Customs Act-
Representations have been received
from the trade and industry with regards to Circular 38/2018-Customs dated
18.10.2018 issued on the above subject, stating that they were hitherto
permitted to undertake certain operations to fulfil a statutory obligation such
as Labelling/affixing RSP etc. under Section 65 of the Customs Act, 1962 in a
public bonded warehouse, licensed under section 57 of the Act, ibid. However
Circular 38/2018 has clarified that those operations under Section 65 should be
undertaken in private bonded warehouses licensed under Section 58 of the Act
thereby disallowing such operations in a Public Bonded warehouse. They have
requested for relief in this regard to ease the difficulties being faced by the
trade.
2. The representations have been examined. They contain the common request to
permit operations required for compliance with labelling/ packing requirements
under legislations pertaining to legal metrology, FSSAI, DGFT, State Excise laws
etc. The request is on the ground of convenience, economies of scale, reducing
transaction cost and past practice.
3. In view of the above. Board has decided to allow labelling/ fixing RSP etc.
to fulfil statutory compliance requirements in all Customs Bonded Warehouse
without the requirement of taking permission under Section 65 of the Customs
Act.
4. Circular 38/2018-Customs dated 18.10.2018 stands modified to the above
extent.
5. Clarification required, if any, may be sought from the Board.
6. Hindi version follows.
(Temsunaro Jamir)
Joint Commissioner (ICD)