Advantage of the scheme

✓ Import material to factory and carry out the manufacturing or processing using these raw materials or Capital Goods;

✓ No duty upon export, the manufactured goods or processed goods, the corresponding BCD+IGST waived;

✓ For home consumption, Customs Duty and IGST needs to be paid at the time of removal from the factory i.e. bonded area – Deferral in payment of duty;

✓ After unlimited use there is no Interest upon removal of Capital Goods itself for the home consumption. Just Pay Customs Duty and IGST on the Capital goods – Huge cash flow benefit in case of new setting up/ expansion;

✓ No need to maintain positive NFE (Net Foreign Exchange Earnings)

✓ In case of manufacturing, no interest implication and the imported inputs/ capital goods can remain in the warehouse without any time limit – Working capital savings;

✓ In case of manufacturing, no interest implication and the imported inputs/ capital goods can remain in the warehouse without any time limit – Working capital savings;

✓ License once obtained is valid for permanence unless cancelled. No hassles of periodic renewals.

Ease of bonded manufacturing

Common form

✓ Common application cum approval form for a license for private bonded facility and permission for manufacturing and other operations

Unlimited period of warehousing

✓ Capital and non-capital goods (raw materials, components, etc.) can remain warehoused until clearance or consumption

No geographical restriction

✓ New manufacturing facility can be set up or an existing facility can be converted into a bonded manufacturing facility irrespective of its location in India

Easy compliance

✓ Maintain all records of manufacturing and other operations digitally in a single format

Lucrative's View

✓ "A big step towards 'Make in India' elevation, it will attract huge foreign investment, generate employment and boost export. India will move in the direction of self-reliant with global manufacturing hub."