CBIC Notifies Manufacture and
other Operations in Special Warehouse Regulations (MOOSWR), 2020
1. Short title and commencement
2. Definitions
3. Application
4. Eligibility for application for operating under these regulations
5. Grant of permission
6. Validity of permission
7. Appointment of warehouse keeper
8. Facilities, equipment and personnel
9. Strong-room
10. Conditions
for
transport of goods
11.
Receipt of goods from customs station
12. Receipt of goods from another warehouse
13. Receipt
of domestically procured goods
14. Transfer of goods from a warehouse
15. Removal of resultant goods for home consumption
16.
Removal of resultant goods for export
17. Conditions for due arrival of goods
18. Maintenance of records in relation to warehoused goods
19. Audit
20. Penalty
21. Power to exempt
FORM (for section 58A licensed warehouse)
[Notification No. 75/2020-Customs (N.T.) dated 17 August 2020]
G.S.R. (E). –In exercise of the powers conferred by section 157, read with sections
58A, 65 and 143AA of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect
Taxes and Customs hereby makes the following regulations, namely: -
1. Short title and commencement. - (1) These regulations may be called the Manufacture
and
Other Operations in Special Warehouse Regulations, 2020.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. Definitions. – (1) In these regulations, unless the context otherwise requires, -
(a) "Act"
means the Customs Act, 1962 (52 of 1962);
(b) “bond
officer” means an officer of customs in charge of a warehouse;
(c) “Controller of Certifying Authorities” means the authority appointed under sub-section
(1) of section 17 of the Information Technology Act, 2000 (21 of 2000);
(d) “Form” means the form appended to these regulations;
(e) “section” means the section of the Act.
(2) The words and expressions used herein and not defined in these regulations but defined in the Act shall have the same meanings respectively as assigned to them in the Act.
3. Application. –These regulations shall apply to, -
(i) the units that operate under section 65 of the Act, or
(ii) the units applying for permission to operate under section 65 of the Act, in a special warehouse licensed under section 58A of the Act.
4. Eligibility for application for operating under these regulations. – (1) The following persons shall be eligible to apply for operating under these regulations, -
(i) a person who applies for a licence under section 58A of the Act for warehousing of goods
listed at clause (1) of notification 66/2016-Customs (NT) (hereinafter referred to as the specified goods), along with permission for undertaking manufacturing or
other
operations in the warehouse under section 65 of the Act; or
(ii) a person
who has been granted
a licence under section
58A of the Act for warehousing of the specified goods, in accordance with Special Warehouse Licensing
Regulations 2016.
(2) An application under these regulations shall be made to the Principal Commissioner of
Customs or the Commissioner of Customs, as the case may be, along with an undertaking to,-
(i) maintain accounts of receipt and removal of goods in digital form in such format as may be specified and furnish the same to the bond officer on monthly basis digitally;
(ii) provide facilities, equipment and personnel as required in these regulations;
(iii) execute a
bond in such format as may be specified;
(iv) submit security in such manner and with such
amount as may be specified;
(v) inform the input-output norms, for raw materials and the final products and to inform the revised input-output norms in case of change therein;
(vi) pay for the services of supervision of the warehouse by officers of customs on cost recovery basis
or overtime
basis,
as may be determined by the
Principal
Commissioner of Customs or the Commissioner of Customs as the case may be; and
(vii) comply with such other terms and conditions as may be specified by the Principal
Commissioner of Customs or the Commissioner of Customs, as the case may be.
5. Grant of permission. - The Principal Commissioner of Customs or the Commissioner of Customs, as the case may be, upon due verification of the application made under sub- regulation (2) of
regulation 4, and after satisfying that all requirements of regulation 4 and
the Special Warehouse Licensing
Regulations,
2016, have been fulfilled,
may grant permission to operate under the provisions of these regulations, along with a licence under
section 58A of the Act where required, subject to such
conditions as deemed necessary.
6. Validity of permission. – The
permission granted under regulation 5 shall remain valid unless it is cancelled or surrendered or the licence issued under section 58A is cancelled or
surrendered, in terms of the provisions of the Act or the rules and regulations made there
under.
7. Appointment of warehouse keeper. – (1) A person who has been granted permission
under regulation
5 shall appoint a warehouse keeper who has sufficient experience in
warehousing operations and customs procedures to discharge functions on his behalf.
(2) The warehouse keeper shall obtain a digital signature from authorities licensed by the
Controller of Certifying Authorities
for filing electronic documents required under the Act or rules or regulations made thereunder.
8. Facilities,
equipment and personnel. – A person who has
been granted permission under
regulation 5 shall provide at the warehouse, -
(i) signage
that
prominently
indicates that the
site
or building is a customs
bonded warehouse;
(ii) a computerized system for accounting of receipt, storage, operations and removal of
goods;
(iii) doors, windows and other building components of sturdy construction;
(iv) a separate strong-room for keeping the specified warehoused goods;
(v) facility for locking the warehouse and the strong-room by the bond officer;
(vi) sufficient office space for bond officer;
(vii) adequate personnel, equipment and space for the examination of goods
by officers of customs; and
(viii) such other facilities, equipment and personnel as are sufficient to control access to the warehouse, provide secure storage of the goods in it and ensure compliance to these regulations by officers of customs.
9. Strong-room. – (1) Except for the dutiable specified goods, no other goods shall be stored
in
the strong-room.
(2) The
bond officer shall cause the strong-room to be locked and no person shall enter the
strong-room or deposit goods therein or remove goods
therefrom, except in presence of the
bond officer.
(3) The warehouse keeper shall, as and when required by the bond officer and at least once in six-months, conduct physical stock taking of the goods stored in the strong-room in presence
of the bond officer, and demonstrate that-
(i) the physical stock of specified goods in the strong room tallies with the stock on record;
and
(ii) the specified goods cleared from the strong-room are either lying as work-in-progress or
have been
utilized in the permitted manufacturing or other operations or
have been exported as such or have been cleared as such in domestic market.
(4) The warehouse keeper and the bond officer shall sign summary of stock taking, prepared
in
duplicate, and keep one copy each for their records.
(5) Where a discrepancy is noticed during a stock taking conducted
under these regulations, the bond officer shall take appropriate action under the Act.
10. Conditions
for
transport of goods. – (1) Where the goods are transported
from the
customs station of import to a warehouse or from one warehouse to another warehouse or from the warehouse to a customs station for export, the load compartment
of the means of
transport shall be securely sealed with a one-time-lock:
Provided that the Principal Commissioner of Customs or Commissioner of Customs, as the case may be, may having
regard to the nature of goods or manner
of
transport, permit transport of such
goods without affixing
the
one-time-lock.
(2) Where
the
goods to be warehoused are removed, from the customs station of import to a
warehouse, the one-time-lock as per sub-regulation (1) shall be affixed by the proper officer
of customs.
(3) Where
the
warehoused goods are removed from the warehouse to another warehouse, the
one-time-lock as per sub-regulation (1) shall be affixed by the licensee, in presence of the
bond officer.
(4) Where the
warehoused goods are removed,
from the warehouse to a customs station for export, the
one-time-lock as
per sub-regulation (1)
shall be affixed
by the licensee,
in presence of the bond officer.
11. Receipt of goods from customs station. – (1) A licensee shall not receive any goods or permit unloading of any goods
at
the warehouse except in the presence of the bond officer.
(2) Upon the bond officer permitting the deposit of the goods received from a customs
station, the licensee shall, –
(i) verify the one-time-lock affixed by the proper officer at the customs station on the load compartment of the means of transport carrying the goods to the warehouse;
(ii) inform the bond officer immediately if the one-time-lock is not found intact, and refuse
the
unloading of the goods;
(iii) allow unloading, provided the one-time-lock is found intact, and verify the quantity of
goods received by reconciling with the bill of entry for warehousing;
(iv) report any discrepancy in the quantity of goods
immediately to the bond officer;
(v) endorse the bill of entry for warehousing with the quantity of goods received and retain a
copy thereof;
(vi) acknowledge the receipt of the goods by endorsing the transportation document presented by the carrier
of the goods and retain a copy thereof;
(vii) take into record the goods received; and
(viii) where the goods are dutiable specified goods, deposit the goods received in the strong- room.
(3) Upon taking into record the goods received in the warehouse, the licensee shall cause to
be delivered an acknowledgement to the proper officer referred to in sub-section (1) of section 60 of the Act and to the bond officer regarding the
receipt of the goods in the warehouse.
12. Receipt of goods from another warehouse. – (1) A licensee
shall not receive
any
goods or permit unloading of any goods at the warehouse except in the presence of the bond officer.
(2) Upon the bond officer permitting the deposit of the goods received from another
warehouse, the licensee shall, -
(i) verify the one-time-lock affixed on
the
load compartment of
the
means of transport carrying the goods to the warehouse;
(ii) inform
the
bond officer immediately if the one-time-lock is not
found
intact and refuse the unloading of the goods;
(iii) allow unloading, provided the one-time-lock is found intact, and verify the quantity of
goods received by reconciling with, -
(a) in case of goods received from a unit operating under section 65 of the Act, the
Form appended to these regulations;
(b) in case of goods received from a warehouse not operating under section 65 of the Act, the Form as prescribed under the Warehoused Goods (Removal) Regulations, 2016.
(iv) report any discrepancy in the quantity of the goods
immediately to the bond officer;
(v) endorse the Form for transfer of goods
from a warehouse with quantity received and
retain a
copy thereof;
(vi) acknowledge the receipt of the goods by
endorsing the transportation document presented
by the carrier of the goods
and
retain a copy thereof;
(vii) take into record the goods received; and
(viii) where the goods are specified goods,
deposit the goods received in the strong-room.
(3) The licensee upon taking into record the goods received in the warehouse, shall cause to be delivered, copies of the retained documents to the bond officer and to the warehouse
keeper of the warehouse from where the goods have been received.
13. Receipt
of domestically procured goods. – (1) A licensee
shall not
receive any goods or permit unloading of any goods
at
the warehouse except in the presence of the bond officer.
(2) Upon the bond officer permitting
receipt and deposit of the domestically procured goods, the licensee shall take into record the goods received.
14. Transfer of goods from a warehouse. – (1) A licensee shall not allow the transfer of
warehoused goods to another warehouse or to
a customs station for export without the permission of the bond officer on the form for transfer of goods from a warehouse.
(2) Upon the bond officer permitting the removal of the goods from the warehouse, the licensee shall, in the presence of the bond officer, -
(i) allow removal of the goods
and
their loading onto the means of transport;
(ii) affix a
one-time-lock to the means of transport;
(iii) endorse the number of the one-time-lock on the form and retain a
copy thereof;
(iv) endorse the number of the one-time-lock on the transport document and retain a copy
thereof;
(v) take into record the removal of the goods; and
(vi) hand-over copy of the retained documents to the bond officer.
15. Removal of resultant goods for home consumption. – (1) A licensee may remove
the resultant goods from the warehouse for home consumption:
Provided that a bill of entry for home consumption
has
been filed in respect of the warehoused goods contained in so much of the resultant goods and the import duty, interest,
fine and penalties payable, if any, in respect of such
goods have been paid:
Provided further that the goods shall not be removed except in the presence of the
bond officer.
(2) The licensee shall retain a copy of the bill
of entry filed and take into record the goods removed.
16. Removal of resultant goods for export. – (1) A licensee shall remove the resultant goods from the warehouse for export, upon, -
(i) filing a
shipping bill or a bill of export, as the case may be;
and
(ii) affixing a one-time-lock to the load compartment of the means of transport in which
such
goods are removed from the warehouse:
Provided that the licensee shall cause the goods to be loaded onto a means of transport and affix a one-time-lock to the means of transport in the presence of the bond officer.
(2) The licensee shall take into record the goods
removed.
17. Conditions for due arrival of goods. - The licensee of the goods shall produce, -
(i) to the proper officer within one month of the order issued under sub-section (1) of section
60 of
the Act, an acknowledgement that the goods have been deposited in the warehouse;
(ii) to the bond officer in charge of the warehouse, within one month from the date of
removal of the goods from the warehouse an acknowledgement
issued by the licensee of the
warehouse to which
the
goods have been removed, stating that the goods have arrived at that
place;
(iii) to the bond officer in charge of the warehouse, within one month from the date of
removal of the goods
from
the
warehouse an acknowledgement issued by the proper officer at the customs station of export, stating that the goods have arrived at that place;
failing which, the owner of such goods shall pay the full amount of duty chargeable on
account of such goods together with interest,
fine and penalties payable under sub-section (1) of section 72.
18. Maintenance of records in relation to warehoused goods. – (1) A licensee shall, -
(i) maintain detailed records of the receipt, handling, storing, and removal of any goods into
or from the warehouse, as the case may be, and produce
the
same to the bond officer, as and when required;
(ii) keep a record of each activity, operation or action taken in relation to the warehoused
goods;
(iii) keep a record of drawl of samples from the warehoused goods under the Act or under any other law for the time being in force; and
(iv) keep copies of the bills of entry, transport documents, forms for transfer of goods from a
warehouse, shipping bills or bills of export or any other documents
evidencing the receipt or
removal of goods into or from the warehouse and copies
of the bonds executed under section
59 of
the Act.
(2) All activities prescribed in these regulations need to be recorded immediately and the data
prescribed in the Form shall also be stored electronically. Such electronic
as
well as manual records
should
be kept updated, accurate and
complete and
shall be available
at the
warehouse at all times and accessible to the bond officer or any other authorised officer for
verification.
(3) The software for maintenance
of electronic records must incorporate the feature of audit
trail which means a secure, computer generated, time-stamped electronic record that allows for reconstruction of the course of events relating to the creation, modification or deletion of an electronic record and includes actions at the record or system level, such as, attempts to access the system or delete or modify a record.
(4) The records and accounts required to be maintained under sub- regulation (1) shall be kept updated and accurate and preserved for a minimum
period of five years from the date of
removal of goods from the warehouse and shall be made available for inspection by the bond officer or any other officer authorised under the Act.
(5) A licensee shall also preserve updated digital copies
of the records specified under sub- regulation
(1)
at a place
other than the warehouse to prevent loss of records due to natural
calamities, fire, theft, skilful pilferage or computer malfunction.
(6) A licensee shall file with the bond officer a monthly return of the receipt, storage, operations and removal of the goods in the warehouse, within ten days after the close of the month to which such
return relates.
19. Audit. –The proper officer may conduct audit of a unit operating under section 65 of the
Act in accordance with the provisions of the Act and the rules made thereunder.
20. Penalty. –If a person
contravenes any of the provisions of these regulations, or abets such
contravention
or fails to comply with any of the provision of these regulations, he shall be
liable to penalty in accordance with the provisions of the Act.
21. Power to exempt. – The Board, having regard to the nature of the goods, their manner of
transport or storage, may exempt a class of goods from any of the
provisions of these regulations.
FORM (for section 58A licensed warehouse)
(See
clause (d) of sub-regulation (1) of regulation 2)
Part A
(to be filled at the dispatch warehouse)
|
Import
details |
Details of
warehousing |
Goods |
Purpose of removal |
Details of despatch of goods |
|||||||||
|
Bill of Entry No. and
date (if
applicable). |
Warehouse code
and address. |
Bond
No. and date. |
Description
of goods. |
Description
and No. of packages. |
Marks and numbers
on packages. |
Weight
and quantity. |
Value. |
Deposit
in another warehouse
(Furnish warehouse code
and address). |
For export
by air or sea or land
or post (Furnish details of customs station). |
Date and time of
removal. |
Registration
No. and details
of means of transport. |
Container
No. (if applicable). |
One- time-
lock
No. |
|
(1) |
(2) |
(3) |
(4) |
(5) |
(6) |
(7) |
(8) |
(9) |
(10) |
(11) |
(12) |
(13) |
(14) |
|
|
|
|
|
|
|
|
|
|
|
|
|||
Signature of licensee or the
warehouse keeper at
the warehouse of despatch.
Date:
Signature of the
bond officer at
the
warehouse of despatch.
Date:
Part B
(To be filled by the
recipient)
|
Details of receipt of goods |
Remarks |
||
|
Date and time of receipt
at the
warehouse or customs station. |
Whether Registration
No. of means of transport
is
matching with despatch? |
Whether the
one-time-lock
is found
intact? |
|
|
(1) |
(2) |
(3) |
(4) |
|
|
|
|
|
Signature of the licensee or the warehouse keeper at the warehouse of receipt with date.
or
Signature of the
proper officer at
the
customs station of export with date.
[F. No. 473/03/2020-LC]