The Synthetic & Rayon Textiles Export Promotion Council

Procedure to be followed in cases of manufacturing or other operations undertaken in bonded warehouses under section 65 of the Customs Act

Circular No.ES/74/2019-20                                                        June 26, 2019                  

To: Members of the Council              

Sub:   Procedure to be followed in cases of manufacturing or other operations undertaken in bonded warehouses under section 65 of the Customs Act

Dear Member,

We would like to inform you that JNCH Customs has issued Public Notice No. 60/2019 dated 21st June, 2019 regarding procedures to be followed in cases of manufacturing or other operations undertaken in bonded warehouses under section 65 of the Customs Act.

Your kind attention is invited to JNCH’s Public Notice No.50/2019 dated 28th May, 2019 on the above mentioned subject.

Representations have been received by the Board from members of trade stating that they were hitherto permitted to undertake certain operations to fulfil a statutory obligation such as labeling / 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, CBIC’s Circular No. 38/2018-Customs dtd. 18th October, 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. Members of Trade have requested for relief in this regard to ease the difficulties being faced by the trade.

Now, the Board has examined the matter and decided to allow labeling / fixing Retail Sale Price (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.

Members may kindly make a note of the above.

Thanking you,            

Yours faithfully,

S.BALARAJU
EXECUTIVE DIRECTOR