Manufacture & Other Operations in Warehouse
Regulations, 1966
Notification No.155-cus.,dated 30th July,1966 as amended
by Notification No. 44/98-Cus., dated 2-7-1998 and Notification
No. 29/1999-Cus.(N.T.), dated 11-05-1999
In exercise of the powers conferred by section 157 of the
Customs Act, 1962 (52 of 1962), the Central Board of Excise 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
Warehouse Regulations, 1966.
(2) They shall be deemed to have come into force on the 4th
day of June, 1966.
2. Definitions.-
For the purpose of these
regulations, unless the context otherwise requires -
(i) "Act" means the Customs Act, 1962 (52 of 1962);
(ii) "manufacturer" means the owner of any warehoused
goods to whom sanction has been accorded under regulation 5;
(iii) "proper form" means such form as the Assistant
Commissioner of Customs or Deputy Commissioner of Customs may
require to be adopted.
3. Owner to make applications.-
(a) The owner
of any goods warehoused under the Act intending to undertake any
manufacturing process or other operations in the warehouse in
relation to such goods shall make an application to the Assistant
Commissioner of Customs or Deputy Commissioner of Customs in the
proper form and furnish inter alia -
(i) information regarding the nature of the manufacturing process
or other operations;
(ii) particulars of imported and other goods proposed to
be used in the manufacturing process or other operations;
(iii) the detailed plan and description of the warehouse;
(iv) data regarding the volume of trade anticipated of the
manufacturing process or other operations; and
(v) the applicant shall, on being called upon to do so,
furnish such other information as may be required.
4. Execution of Bond.-
The Assistant
Commissioner of Customs or Deputy Commissioner of Customs may, if
he is satisfied that the applicant has carried out such
alterations to the warehouse premises as may be required for this
purpose and that the volume of trade and other considerations
justify grant of sanction direct the applicant to file a bond,
undertaking inter alia to -
(i) observe all the provisions of these regulations;
(ii) maintain detailed accounts of all imported and other
goods used in the manufacturing process or other operations in
the proper form and to produce such accounts for inspection by
the proper officer;
(iii) submit detailed statements of all imported and other
goods used in the manufacturing process or other operations and
those remaining in stock, at any time the proper officer
directs;
(iv) provide to the officers of customs office space,
wherever required, and access to warehouse, for control and
supervision of the manufacturing process or other operations or
imported and other goods as may be specified by Assistant
Commissioner of Customs or Deputy Commissioner of Customs;
(v) pay all the charges including pay, allowances, leave
and pensionary charges of such officers as may from time to time
be posted by the Assistant Commissioner of Customs or Deputy
Commissioner of Customs in the warehouse for supervision and
control of the manufacturing process or other operations, or
imported and other goods;
(vi) comply with such conditions as may be imposed by the
Assistant Commissioner of Customs or Deputy Commissioner of
Customs from time to time for carrying out the purposes of these
regulations and the Act.
5. Grant of sanction.-
On execution of the bond,
in the manner hereinbefore provided, the Assistant Commissioner of
Customs or Deputy Commissioner of Customs shall accord sanction to
the applicant to carry on such manufacturing process or other
operations specifying:
(a) the manufacturing process or other operations permitted to be
carried on in the warehouse;
(b) the types and nature of imported and other goods
permitted to be used;
(c) the period for which the sanction is valid; and
(d) the conditions, if any, subject to which the
manufacturing process or other operations may be carried on in
the warehouse;
(e) the input-output norms, wherever considered necessary,
for the raw-materials and the finished goods.
6. Conditions that may be imposed by the
Assistant Commissioner of Customs or Deputy Commissioner of
Customs- The Assistant Commissioner of Customs or Deputy
Commissioner of Customs may from time to time :
(i) Omitted
(ii) determine the number of customs officers that may be
attached to the warehouse for purposes of supervising the
manufacturing process or other operations;
(iii) fix the sum payable by the manufacturer towards the
cost of such establishment and the extra charges payable towards
the overtime services, if any, performed by such establishment
at the request of the manufacturer; and
(iv) Omitted
7.Omitted
8. Omitted
9. Maintenance of accounts.-
The manufacturer
shall maintain accounts relating to stocks, raw materials, goods
in process, finished goods, waste and refuse in proper form:
Provided that where the manufacturer maintains for his own
purpose such detailed accounts and has carried out such
alterations in the form of accounts as may be required in this
behalf, theAssistant Commissioner of Customs or Deputy
Commissioner of Customs may in his discretion direct such forms
of accounts to be adopted as the proper form.
10. Accounts to be accessible to Customs
Officer.-
The proper officer may, at any time, inspect or call
for the accounts and connected records for scrutiny.
11. Special Audit in certain cases :
(i) The Chief Commissioner of Customs may, for reasons to be
recorded in writing, direct a manufacturer to get the accounts of
his warehouse, office, stores, godowns, factory, depot, or other
establishment audited by a Cost Accountant, nominated by him in
this behalf.
(ii) The Cost Accountant, shall submit the audit report
duly signed and certified by him within the period specified by
the Chief Commissioner of Customs, or such extended period as
may be allowed by him, to the Commissioner, giving therein such
other information or particulars as may have been asked for by
the Chief Commissioner.
(iii) The provisions of sub-regulation (i) shall be in
addition to, and not in derogation of any other law for the time
being in force.
(iv) The expenses of, and incidental to, such audit
(including the remuneration of the Cost Accountant) shall be
determined by the Chief Commissioner and paid by the
manufacturer and in default of such payment shall be recoverable
from the manufacturer in the manner provided in section 142 of
the Customs Act, 1962 (52 of 1962).
(v) The manufacturer shall be given a copy of the audit
report conducted in pursuance of sub-regulation (1) who may make
a representation, if he so likes.
>
Explanation: For the purpose of this regulation "Cost
Accountant" shall have the meaning assigned to it in clause (b)
of sub-section (1) of section 2 of the Cost and Works
Accountants Act, 1959 (23 of 1959).
12. Issue and return of imported goods to/from
the manufacturing process or other operations.-
(a) The
Assistant Commissioner of Customs or Deputy Commissioner of
Customs shall, having regard to the manufacturing process or other
operations to be carried on in the warehouse, direct the manner in
which the imported goods shall be issued from and the unused items
received back into stock.
(b) The application for issue of imported goods and the
vouchers against which the unused items may be returned shall be
in the proper form.
13. Manufacturer to give notice before
suspending or discontinuing the manufacturing process or other
operations.-
No manufacturer shall suspend or discontinue the
manufacturing process or other operations authorised to be carried
on in the warehouse without giving in writing to the Assistant
Commissioner of Customs or Deputy Commissioner of Customs, one
month"s notice of his intention so to do:
Provided that in any particular case the aforesaid period
of one month may, on sufficient cause being shown, be reduced by
the Assistant Commissioner of Customs or Deputy
Commissioner of Customs by such period as the Assistant
Commissioner may deem fit:
14. Cancellation and suspension of sanctions.-
If the manufacturer or any person in his employ commits a breach
of the provisions of the Act or the terms and conditions imposed
by or under these regulations or if the particulars furnished in
the application for sanction are false or incorrect/ or if any
undertaking given in the bond is not fulfilled the Assistant
Commissioner of Customs or Deputy Commissioner of Customs may,
without prejudice to any other action that he may take under the
provisions of the Act or these regulations cancel the sanction
for carrying on the manufacturing process or other operations :
Provided that before the sanction is cancelled the
manufacturer shall be given reasonable opportunity of being
heard.
15.Repeal.-
The Rules and Regulations specified
in the Schedule to these regulations appended below shall cease
to be in force except as respects things done or omitted to be
done before such cesser.
SCHEDULE
(See Regulation 15)
1. Rules prescribed for the purpose of operation on goods
in a warehouse - Wines and Spirits - vide late C.B.R.
Notification No. 56, dated the 2nd July,1927 as amended by
Notifications No. 29-Cus., dated 16th May, 1931 and No. 11-Cus.,
dated the 22nd January, 1938.
2. Rules for the manufacture of cigarettes in bond from
unmanufactured foreign tobacco imported and warehoused under the
provisions of section 92 of the Sea Customs Act at an inland
bonded warehouse - late C.B.R. Notification No. 34-Cus., dated
the 30th May, 1942.
3. Rules for the manufacture of cigarettes or tobacco in
bond from unmanufactured foreign tobacco imported and warehoused
under the provisions of section 92 of the Sea Customs Act-late
C.B.R Notification No. 54-Customs, dated the 25th October, 1941,
as amended by Notifications No. 8-Customs, dated 17th April, 1943
and No. 62-Customs, dated the 8th July, 1950.
4. Rules for manufacture of complete Gramophone machine
(including electric gramophones) in bond - late C.B.R.
Notification No. 9-Customs, dated the 13th July, 1946.
5. Rules for the free-entry at the Madras Customs House of
unmanufactured foreign tobacco imported for the manufacture of
cigars intended for export to foreign ports-Notification dated
the 1st November, 1910, published in pages 1685-86 of Part II of
the Fort St. George Gazette, dated the 8th November, 1910 as
amended by notification dated the 22nd May, 1920 published on
page 1051 of Part II of the Fort St. George Gazette, dated the
1st June, 1920, late C.B.R. Notification No. 79-Customs, dated
the 5th December, 1936, Notification No. 12-Customs, dated the
22nd January, 1938 and No. 47-Customs, dated the 12th October,
1940.
6. Rules to regulate the canning of motor spirit and
kerosene oil from the stock imported and warehoused in a bonded
tank at Bombay-late C.B.R. Notification No. 5-Customs, dated the
5th January, 1935 as amended by Notification No. 70-Customs,
dated the 26th March, 1938.
7. Rules for the manufacture or repairs of vessels from
material imported by the Hindustan Shipyard Ltd., Visakhapatnam
etc. - late C.B.R. Notification No. 78-Customs, dated the 7th
August, 1954 as amended by C.B.R. Notification No. 63-Customs,
dated the 3rd June, 1961.
8. Motor Vehicles (Manufacture-in-bond) Rules, 1956 - late
C.B.R. Notification No. 97-Customs, dated the 6th November, 1956.
9. Rules for the manufacture or re-manufacture of
cigarettes or tobacco in bond from indigenous or imported duty
paid tobacco or cigarettes and unmanufactured imported tobacco
warehoused under the provision of section 92 of the Sea Customs
Act - late C.B.R. Notification No. 22-Customs, dated the 29th
June, 1957.
10. The Handicrafts (Manufacture-in-bond) Rules, 1958 -
C.B.R. Notification No. 229 Customs, dated the 13th August, 1958.
11. The Manufacture-in-Bond (General) Rules, 1960 - late
C.B.R. Notification No. 15-Customs, dated the 27th February,
1960.
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