Circular
No. 132/95-Cus.
dated 22/12/95
F.No. 473/61/94-LC
Government of India
Ministry of Finance
Department of Revenue,
New Delhi
Subject:
Warehousing -Grant of in-bond Manufacture facility under section 65
of the Customs Act, 1962-
Instruction regarding.
I am directed to state that a review of the existing policy with regard
to grant of in-bond Manufacture facility under section 65 of the Customs
Act, 1962 has been conducted by the Board. Consequent to the review, it
has been decided that the requests for grant of in-bond Manufacture facility
under section 65 of the Act will henceforth be considered and decided at
the level of the Commissioners without making any reference to the Board.
The following guidelines may, however, be kept in view while deciding such
requests.
2. The
Board's policy has been to extend the facility mainly to export oriented
units so that unnecessary difficulties to pay duty and later claim drawback
can be avoided. In order to whether an Industrial unit is export-oriented
or not, the following figures may be compared-
a) Total
value of goods manufactured by using imported raw materials;
b) Total
value of such finished goods exported; and
c) Total
value of such finished goods retained for domestic sale.
3. Flexible
approach may, however, be adopted in the matter so that there is no instance
that the exports have to be less than 50% of imported materials. further
the Manufacture-in-bond operations are required to be carried out under
customs supervision on cost recovery basis. The Commissioner may carefully
securities the application for grant of in-bond manufacture facility and
if the applicant is financially secured, has goods credibility, and has
not been involved in Customs or Excise duty evasion in the preceding 5
years in the normal course, an in-bond manufacture licence under section
65 may be granted. This would, of courser, be subject to the condition
that the promises are suitable and adequately secured. While granting the
request, the provisions of the Manufacture and other operations in Warehouse
Regulations, 1966 have also to be complied with.
Sd/-
(K. Chopra)
Under Secretary
to the Govt. of India