Home »Budgets » SROs-Customs » Public/private bonded warehouses: procedure of warehousing period streamlined

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  • Jul 3rd, 2010
  • Comments Off on Public/private bonded warehouses: procedure of warehousing period streamlined
The Federal Board of Revenue (FBR) has made mandatory for the ghee/cooking oil manufacturers, availing warehousing facility, that palm oil or olein stored in warehouses should be consumed in the manufacture of goods meant for export within six months from the date of filing of Goods Declaration (GD) or procurement of locally purchased goods.

The FBR on Friday amended the Customs Rules-2001 through an SRO. 601(I)/2010 to streamline procedure pertaining to warehousing period for public or a private bonded warehouses. Under the amended rules, input goods imported or procured locally by a manufacturing bond licensee shall be consumed within a period which shall run from the date on which the imported goods are placed under the manufacturing bond procedure.

The period will be established by the Collectorate concerned on the basis of the time required to carry out the processing operations and dispose of the compensating products, as established in the Analysis Certificate. The period will not in any event exceed two years from the date of in-bonding or procurement of locally purchased goods.

For duly justified reasons, extension may be granted for another one year by special written approval of an officer not below the rank of Additional Collector of Customs. The rules further said that palm oil or olein shall be consumed in the manufacture of goods meant for export within six months from the date of filing of Goods Declaration or procurement of locally purchased goods.

Under the amended rule 361(stock taking of goods lying in a warehouse), an appropriate officer of customs, authorised by the concerned Assistant Collector of Customs, shall conduct stock taking and detailed audit of a warehouse as and when so directed but at least once in a year.

The auditors specifically will examine the mandatory requirements of the scheme, availabilities of all prescribed records set out in this scheme, input or output ratios actually consumed for the manufacturing of finished goods, opening stocks of the year, inward or outward input goods during the year, finished goods stocks, wastages or rejects (losses during the year if any), due approvals of the Customs authorities, and shall submit its findings or report to the concerned Collectorate and a copy thereof to the licensee for his records. In case of local procurement, the local procurements should be kept separately and identifiable to Customs authorities. However, during

manufacturing process, the local procurement of same characteristic or specification or identical inputs (as imported) can be consumed simultaneously in the production facility with separate internal records of the Company verifiable by the Customs authorities during routine check-up and periodical audits. It is, however, required that entries in the stock records shall allow the Customs authorities to monitor the precise situation of all goods under the arrangements at any time, amended rules added.

Copyright Business Recorder, 2010


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