Private Bonded Warehouses – EOUs – Who should give permission – CBEC clarifies.
As per Board's Circular No. 68/95-CUS., dated 15.06.1995, the requests for grant of licenses for private bonded warehouses will be considered and decided at the level of Commissioners without making any reference to the Board.
As per the Board's Circular No.132/95-CUS ., dated 22.12.1995 the requests for grant of in-bond Manufacture facility u/s 65 of the Customs Act, 1962 will henceforth be considered and decided at the level of Commissioners without making any reference to the Board.
EOUs are Private Bonded Warehouses and they also manufacture in bond under Section 65 of the Customs Act.
Representations have been received from the trade and field formations regarding applicability of the Board instructions to the 100% EOUs and regarding competent authority for Appointment/Licensing of Public/Private Bonded Warehouses u/s 57 and 58 and grant of permission for in-bond manufacturing facility u/s 65 of the Customs Act, 1962 as provided under the instructions.
As ascertained by the Board from the field formations, different practices are being followed and in case of 100% EOUs , the licensing u/s 58 and grant of permission for in-bond manufacturing facility u/s 65 of the Customs Act, 1962 is generally considered and decided by Assistant Commissioner of Customs or Deputy Commissioner of Customs.
So, CBEC has now clarified, for the purpose of ensuring uniformity in practice and also to prevent misuse of the facility, that the aforesaid instructions issued vide Board's Circular No.68/95-CUS ., dated 15.06.1995 and Circular No.132/95-CUS ., dated 22.12.1995 regarding entrusting the specified functions to the Commissioners are being reiterated.
However, in case of 100% EOUs , the licensing u/s 58 and grant of permission for in-bond manufacturing facility u/s 65 of the Customs Act, 1962 shall continue to be considered and decided by Assistant Commissioner of Customs or Deputy Commissioner of Customs.
Means THERE IS NO CHANGE IN PROCEDURE.
CBEC Circular NO 9/2008 Dated: June 25, 2008