CBIC launches programme to strengthen Make in India
Central Board of Indirect Taxes and Customs (CBIC), India’s nodal national agency responsible for administering Central Excise, Service Tax, Customs, GST, & Narcotics has launched a revamped and streamlined programme to attract investments into India and strengthen Make in India through manufacture and other operations. The programme is launched under bond scheme of Customs Act, 1962 as this section enables conduct of manufacture and other operations in a customs bonded warehouse.
Moreover, CBIC in collaboration with Invest India has launched a dedicated microsite [https://www.investindia.gov.in/bonded-manufacturing>] for providing information as well as promoting scheme and for facilitation of investors.
Key Highlights of Scheme
It prescribes a single application cum approval form for uniformity of practice.
Jurisdictional Commissioner of Customs will function as a single point of approval to set up and oversee operations of such units. Moreover, there is no geographical limitation on where such units can be set up.
The unit can import goods (both inputs as well as capital goods) under a customs duty deferment program and the duties are fully remitted if processed goods are exported.
The units will benefit through improved liquidity as there will be no interest liability.
GST compliant goods can be procured from domestic market for use in manufacture and other operations in a section 65 unit.
A single digital account has been prescribed for ease of doing business and easy compliance.
The Scheme has been modernized with simplified compliance requirements Information and Communication Technology (ICT)-based documentation, clear and transparent procedures and account keeping, by issue of Manufacture and Other Operations in Warehouse Regulations 2019.
Significance: Scheme will also enable efficient capacity utilization, as there is no limit on quantum of clearances that can be exported or cleared to the domestic market. It is expected to play a critical role in promoting investments in India and in enhancing ease of doing business (EDB). It can provide impetus to Make in India programme by encouraging exports, creating hubs for electronics assembly, repairing/refurbishing operations, inward/outward processing, facilitating global e-commerce hubs among others.
Category: Economy & Banking Current Affairs