India’s Central Board of Indirect Taxes and Customs (CBIC) recently launched a revamped and streamlined programme to attract investments and strengthen the ‘Make in India’ programme through manufacturing and other operations under the bond scheme of the Customs Act, 1962. Section 65 of act allows manufacturing and other operations in a customs bonded warehouse.
The scheme has been modernised with clear and transparent procedures, simplified compliance requirements, modern documentation and account keeping, by issuing a circular dated October 1, according to an official release.
Its main features include a single application-cum-approval form prescribed for uniformity of practice, no geographical limitation on where such units can be set up, no interest liability and benefit for units through improved liquidity, a single digital account for ease of doing business and easy compliance, allowing units to import goods (both inputs and capital goods) under a customs duty deferment programme and procurement of goods complying to the goods and services tax (GST) from the domestic market for use in manufacture and other operations.
The jurisdictional commissioner of customs will function as a single point of approval to set up and oversee the operations of such units. The scheme would also enable efficient capacity utilisation, as there is no limit on quantum of clearances that can be exported or cleared to the domestic market.
CBIC has collaborated with Invest India to launch a dedicated website for providing information and promoting the scheme and for facilitation of investors.
