Customs Act, 1962 — Chapter IX: Warehousing
65. Manufacture and other operations in relation to goods in a warehouse
- With the Assistant/Deputy Commissioner’s sanction, and subject to prescribed conditions and fees, the owner of warehoused goods may carry on manufacturing or other operations in the warehouse in relation to such goods.
- Where such operations produce waste or refuse: (a) if the resulting goods (or part) are exported, import duty is remitted on the warehoused-goods quantity contained in the waste/refuse arising from the exported portion, provided the waste/refuse is destroyed or duty paid on it as if imported in that form; (b) if the resulting goods (or part) are cleared for home consumption, import duty is charged on the warehoused-goods quantity contained in the waste/refuse arising from that portion.
