India: Customs bonded warehouse: Time to shift?

As part of the Government of India’s (GoI) efforts to promote manufacturing and other operations in India, the Central Board of Indirect Taxes and Customs (CBIC) has revamped the scheme for manufacturing and processing in a bonded facility. The revised initiative underscores the GoI’s ongoing commitment to improve India’s ranking on the Ease of Doing Business index.

Bonded manufacturing facilities allow duty deferral on the import of raw material and capital goods. However, customs duty is to be paid only if the finished goods/ capital goods are cleared for sale in the domestic market.
The concept offers many advantages over the existing schemes available to businesses in India, the most notable ones being no fixed export obligation, unlike the Export Promotion Capital Goods (EPCG) Scheme, and no minimum value-addition, as in the case of the Advance Authorisation Scheme.

Aside from offering an unlimited period of warehousing, another highlight of the scheme is that a new manufacturing facility can be set up or an existing facility can be converted into a bonded manufacturing facility without any geographical restriction.

Other highlights include easy warehouse-to-warehouse transfer and digital maintenance of records.

We have enclosed a brochure which provides an overview of bonded warehousing, its advantages, beneficiaries and other key features.

We hope that you will find the brochure to be informative. We would be happy to explain to you how your business can benefit from manufacturing in a bonded warehouse.

Please click on the below download button to access our brochure.

For further information please contact Pratik Jain, pratik.p.jain@pwc.com

Image Source: http://unsplash.com

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