Finally Movement from One MOOWR
Unit to Another MOOWR Unit Allowed
·
Due
process of debiting of the triple duty bond of the transferee (i.e., one who
deposits goods at the recipient warehouse) and recrediting of the triple duty
bond of the supplier (i.e., one who removes goods from the dispatch warehouse)
in terms of Section 59 of the Customs Act.
·
A
transit risk insurance policy to cover the customs duty involved in the goods
moved from one warehouse to another, must be ensured.
·
The
transfer of resultant goods from a Section 65 Unit to another warehouse/Section
65 Unit is permitted subject to due compliance of the conditions prescribed
under MOOWR read with the warehousing provisions under Chapter IX of the
Customs Act ,1962.
· Maintenance of digital records along with accurate and timely filing of monthly returns (as prescribed under Regulation 17 of MOOWR) should be strictly implemented.
[CBIC Instruction No. 16/2024- Customs dated
25 June, 2024]
F. No. CBEC-170473/3/2020-Land customs
section
Subject: MOOWR -Transfer of Goods from
one Section 65 Unit to another.
Representations from trade have been received
in the Board seeking clarity on the payment of deferred duties and other
procedural requirements when goods resulting from undertaking 'manufacturing or
other operations' in a warehouse, as permitted under Section 65 of the Customs
Act, are transferred to another Section 65 Unit. Members of the trade and
industry have reported challenges in moving such goods for use or further
processing within the supply chain. They have highlighted non-uniformity in
implementation of provisions of Section 65 of the Customs Act read with the
Manufacture and Other Operations in Warehouse (no.2) Regulations, 2019 (MOOWR)
and extant Circulars issued on the subject.
2. In this regard, attention is drawn to
the proviso to Regulation 14 of MOOWR which states that import duty in respect
of the warehoused goods contained in so much of the resultant goods, becomes
payable at the time of removal of such resultant goods for home consumption.
Thus, Regulation 14 provides the extent of deferred customs duty payable on the
warehoused goods and the manner of its payment in the event that the resultant
goods are removed for home consumption.
2.1 MOOWR, in effect, provides that the
deferred customs duty on the warehoused goods becomes payable only when the
resultant goods (containing such warehoused goods) are cleared for home
consumption which concomitantly entails filing the Ex-Bond Bill of Entry for
the contained warehoused goods in terms of Section 68 of the Customs Act.
3. Further, Regulation 11 envisages
receipt of goods in a Section 65 unit from another warehouse, which could also
be a warehouse operating under Section 65. In this regard, clause (3)(a) of
Regulation 11 provides that goods may be received from another Section 65 unit,
subject to the licensee verifying the intactness of the one-time-lock,
reconciling the quantity of such received goods from the Form appended to the
MOOW Regulations, and complying with other requirements ofthe
regulation. The Form prescribed for transfer of goods under MOOWR consists of
two parts- Part A (to be filled at the dispatch warehouse) and Part B (to be
filled by the recipient). This Form is to be endorsed by the licensee or
warehouse keeper of both the dispatching warehouse and the receiving warehouse
at the respective places in the Form. Complete description of the resultant
goods and the corresponding warehoused goods (i.e., warehoused goods contained
in the resultant goods) are required to be captured in Part A of this form
before initiating the dispatch of such goods. The transfer must be intimated to
the bond officer on the said Form as required under Regulation 13.
3.2 Attention is also drawn to the
relevant portion of Circular 34/2019-Customs (that prescribes the procedure to
be followed by units operating under Section 65) which states as follows-
"15. Sections 67, 68 and 69 of the
Act provides for permission of the proper officer for removal of the goods from
one warehouse to another, for home consumption and for export, respectively.
Even in cases, the resultant goods are being removed, permission of the proper
officer would be required for removal of the (imported) warehoused goods
contained in the resultant goods.
15.1 Given the continuous nature of
operations in warehouses under section 65, and the potential need to clear
resultant goods expeditiously, the requirement to obtain prior permission of
the proper officer for each clearance could pose a challenge to making clearances
on time to meet delivery schedules. Therefore to facilitate such timely
clearances and for convenience of the trade, recourse has been taken to the
powers vested under Section 143 AA, and it is provided under regulation 13, 14
and 15 of MOOWR 2019 that while a licensee shall file the due documentation
(such as the Form for transfer of goods from a warehouse, bill of entry and shipping
bill, respectively) and pay the duties due, prior permission of the proper
officer is not an essential condition for removal of the warehoused goods (as
part of the resultant goods)..."
Evidently, transfer of resultant goods
from one Section 65 Unit to another is allowed subject to filing of due
documentation, sending intimation to the bond officer and complying to other
requirements of the regulations.
4. In view of the above, it is conveyed
that the transfer of resultant goods from a Section 65 Unit to another
warehouse/Section 65 Unit is permitted subject to due compliance of the conditions
prescribed under MOOWR read with the warehousing provisions under Chapter IX of
the Customs Act ,1962.
5. The officers under your jurisdiction
as well as members of the trade and industry alike, should be sensitised to adhere to the conditions prescribed regarding
transfer of resultant goods from one warehouse to another. The aspect of maintenance of digital records along with accurate and
timely filing of monthly returns (as prescribed under Regulation 17 of MOOWR)
should be strictly implemented. The licensees of the despatching
and receiving warehouses must, in their records, duly account for the resultant
goods so transferred and the dutiable goods contained therein, as well as the
corresponding duty amount, so as to ensure that the duty liability remains
intact till the duty so deferred is paid upon clearance for home consumption.
6. Difficulty, if any, in implementing
the above instructions may be brought to the notice of the Board.