Customs Bonded Warehousing Overview:
Customs bonded warehouses, defined under the Customs Act, 1962, are secure facilities allowing storage and manufacturing operations for dutiable goods without immediate duty payment. These include public warehouses for any importer, private warehouses for licensees, and special warehouses for sensitive goods. The process involves import, assessment, in-bonding, storage, and options for transfer or ex-bonding.
MOOWR 2020 – Manufacturing in Bond:
The Manufacturing and Other Operations in Special Warehouse Regulations, 2020 (MOOWR) facilitate manufacturing in special warehouses. This allows for duty deferment, no export obligations, and full remission if goods are exported. Recent changes aim at simplifying conversions, reducing administrative burden, and promoting liquidity. The application procedure involves online filing, compliance checks, bond execution, and approval by the Commissioner of Customs.
Immediate Benefits and Compliance Simplification:
MOOWR brings immediate benefits like no export obligations, perpetual warehouse licenses, and a self-assessment principle. Compliance is simplified through single-point approvals, common application forms, and reduced costs. The scheme encourages exports, offers flexibility in sourcing, and allows job work, making it MSME-friendly with no geographical limitations or investment thresholds. Overall, MOOWR aims to streamline manufacturing processes in bonded warehouses, fostering ease of doing business and liquidity for businesses.
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