CBIC and Customs launches scheme to attract investment - (15 Oct 2019)

Customs

Central Board of Indirect Taxes and Customs has launched a revamped programme to attract investments into India and strengthen Make in India initiative through manufacture and other operations under bond scheme of Customs Act, 1962. Section 65 of the Customs Act, 1962 enables conduct of manufacture and other operations in a customs bonded warehouse. The scheme has been modernized with clear and transparent procedures, simplified compliance requirements. Further, the scheme would strengthen and promote investments and entrepreneurship and enhance ease of doing business initiative as well.

Availability of modern and facilitating infrastructure plays a significant role in growth of industries. The scheme provides a single application cum approval form for uniformity of practice. The jurisdictional Commissioner of Customs will function as a single point of approval to set up and oversee the operations of units. There would be no geographical limitation on where the units can be set up. The unit can import goods (both inputs and capital goods) under a customs duty deferment program. The duties are fully remitted, if the processed goods are exported. Further, there will be no interest liability and units will benefit through improved liquidity. GST compliant goods can be procured from the domestic market for use in manufacture and other operations in a Section 65 unit. The scheme would also enable efficient capacity utilization, as there is no limit on quantum of clearances that can be exported or cleared to the domestic market.

Further, a microsite is to be launched in collaboration with Invest India for providing information and promoting the scheme. It would encourage exports, create hubs for electronics assembly, repair & refurbishment operations, inward and outward processing, facilitate global e-commerce hubs etc. The ‘Make in India’ initiative was launched in 2014 with the aim of promoting India as an important investment destination and a global hub in manufacturing, design and innovation. Further, it aims to create a favourable environment for investment, development of modern and efficient infrastructure, opening up new sectors for foreign investment.

Tags : INVESTMENT SCHEME LAUNCH