Removal of Mandatory warehousing requirements for EOUs, STPIs, EHTPs, etc.: CBEC
It has been decided by the CBEC to dispense with the need to comply with warehousing provisions under Custom Laws by EOUs, STPIs, EHTPs, etc. units, with effect from 13th August, 2016, recognizing the potential their role in the Make in India initiative and for improving the ease of doing business. In this backdrop, it was felt that the application of warehousing provisions to these units adds to their compliance requirements without adding to either improved monitoring by the dept. or providing any additional facilitation to them. Accordingly, the CBEC has issued Circular No. 35/2016-Customs & Notification No. 44/2016-Customs dt. 29 July, 2016.
As a consequence, these units shall stand delicensed as warehouses under Customs Act, 1962, with effect the above mentioned date. However, they shall continue to adhere to the provisions of Notification 52/2003-Customs dated 31.3.2003, FTP, HBP and other applicable notifications issued from time to time.
In view of the condition of warehousing having been dispensed with respect to the units, the warehoused goods register (warehousing bond register) shall not be required to be maintained w.e.f 13th August 2016. However, in order to maintain records of receipts, storage, processing and removal of goods, imported by the units, as required under notification 52/2003-Cus dated 31.3.2003, the Board has prescribed that the units shall maintain records of imported goods, in digital form, based upon data elements contained in Form A (appended). The software for maintenance of digital records must incorporate the feature of audit trail which means a secure, computer generated, time-stamped electronic record that allows for reconstruction of the course of events relating to the creation, modification, or deletion of an electronic record and includes actions at the record or system level, such as, attempts to access the system or delete or modify a record. For more details, refer below: