Page 76 - ELT_15th July 2020_Vol 373_Part 2

T24 EXCISE LAW TIMES [ Vol. 373

14. What is the customs document/ form for movement of imported
goods on which duty has been deferred to/from a unit undertaking
manufacture and other operations in a bonded warehouse? Are
such goods required to be under customs escort during their
movement?
Response : Following are the customs document for movement
of imported goods on which duty has been deferred to/from a
unit undertaking manufacture and other operations in a bonded
warehouse :
(i) Customs Station to Section 65 unit : Bill of entry for
warehousing. It is clarified that no separate form is
prescribed for movement from Customs station to Section 65
unit as the goods are already accompanied by the Bill of
entry for warehousing.
(ii) From another warehouse (non-Section 65) to a Section 65 Unit :
Form for transfer of goods from a warehouse as prescribed
under the Warehoused Goods (Removal) Regulations, 2016.
This is because warehouse which is not a Section 65 unit has
to follow the Warehoused Goods (Removal) Regulations,
2016.
(iii) From Section 65 Unit to another warehouse (the other warehouse
can be a Section 65 unit or a non-Section 65 warehouse) : Form
prescribed in Manufacture and Other Operations in
Warehouse (no. 2) Regulations, 2019.
The goods will not be under customs escort during movement.
15. If the imported capital goods are cleared for home consumption
after use, is depreciation available?
Response : No. Depreciation is not available if imported capital
goods (on which duty has been deferred) are cleared for home
consumption after use in a Section 65 unit.
16. If the imported capital goods are cleared for export after use, is
depreciation available?
Response : The imported capital goods (on which duty has been
deferred) after use in a Section 65 unit can be exported without
payment of duty as per Section 69 of the Customs Act. For the
purposes of valuation of the export goods, the same will be as per
the Section 14 of the Customs Act read with the Customs
Valuation (Determination of Value of Export Goods) Rules, 2007.
17. Can all export benefits under FTP and Customs (Import of Goods
at Concessional Rate of Duty) Rules, 2017 (IGCR) be taken in
Bonded warehouse simultaneously?
Response : The eligibility to export benefits under FTP or IGCR
would depend upon the respective scheme. If the scheme allows,
unit operating under Section 65 has no impact on the eligibility. In
other words, a unit operating under Section 65 can avail any other
benefit, if the benefit scheme allows.

EXCISE LAW TIMES  15th July 2020  76