The Central Board of Indirect Taxes and Customs (CBIC) has launched a new scheme which is expected to play a critical role in promoting investments in India and strengthen ‘make in India’ through manufacture and other operations under bond scheme, under Customs Act, 1962.
The scheme has been modernized with clear and transparent procedures, simplified compliance requirements ICT-based documentation and account keeping, by issue of Manufacture and Other Operations in Warehouse (no. 2) Regulations, 2019 and Circular 34/2019 both dated 01 October 2019.
CBIC has collaborated with Invest India to launch a dedicated micro site for providing information and promoting the scheme and for facilitation of investors. The site can be accessed at https://www.investindia.gov.in/bonded-manufacturing
The main features of the scheme are as below:
- A single application cum approval form prescribed for uniformity of practice and a single point of approval to set up and oversee the operations of such units.
- No geographical limitation on where such units can be set up.
- The unit can import goods (both inputs and capital goods) under a customs duty deferment program.
- There will be no interest liability and units will benefit through improved liquidity.
- GST compliant goods can be procured from the domestic market for use in manufacture and other operations in a section 65 unit.
- A single digital account has been prescribed for ease of doing business and easy compliance.
The scheme would also enable efficient capacity utilization, as there is no limit on quantum of clearances that can be exported or cleared to the domestic market.
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