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facilitating exporters. Now most of the 100% export industries are running under direct
supervision of Bond Commissionerates.
As per Customs Act, 1969 and Value Added Tax Act, 1991 with very few exceptions, almost all
exports are tax free. They also get tax free benefit of import or local purchase for the raw
materials to be used in manufacturing of exporting goods. But imports of raw materials are
taxable in regular tax regime. The exporting industries have to pay tax during import of raw
materials if they work in normal tax regime. After exporting their finish goods, they have to
claim Duty Drawback from DEDO or respective VAT Commissionerate. But under the special
tax system like bonded warehouse system, they do not need to pay tax during their imports of
raw materials.
In the year 2000, newly born Customs Bond Commissionerate started its journey with the aim to
help & facilitate the export business, collect proper revenue, control misuse of bonded
warehouse facilities and preserve and record various data for multiuse.
Section13, 84 to 119 of The Customs Act, 1969 deals with bonded warehouse management.
Besides, bonded warehouse management for Export Processing Zones, Home Consumption
Bond and Diplomatic Bond are guided by Specific Rules, SRO’s & Office Order’s.
Objectives of the Customs Bond Commissionerates:
The main objectives of the Customs Bond Commissionerates are to:
– Help and facilitate the export business
– Ensure proper collection of revenue
– Control misuse of bond facilities through risk management
– Minimize the misuse of Bond Facilities.
– Preserve and record various data
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