MANUFACTURE & OTHER OPERATIONS IN WAREHOUSE REGULATIONS, 1966
Notification No. 155
dated 30th July 1966 (NT) {As
amended by Notification No. 44 dated 2nd July 1998 (NT)}
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.
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.
(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.
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.
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.
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
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, the Assistant
Commissioner of Customs or Deputy Commissioner of Customs may in his discretion
direct such forms of accounts to be adopted as the proper form.
The proper officer may, at any time, inspect or call
for the accounts and connected records for scrutiny.
(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).
(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.
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:
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.
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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