Customs Bonded Warehouses Quiz

Study Notes

Revised rules and regulations on the establishment, supervision, operation, and control of Customs Bonded Warehouses (CBWs)
Aims to provide procedures for CBW establishment and operation, improve transparency, and institute a full compliance regime
Includes provisions for transfer of goods, storage periods (differentiating between perishable & non-perishable), allowable importations, restricted/regulated goods, withdrawals for local sales, and for sub-contracting.

Establish CBW procedures and operations
Implement a CBW management system using ICT for better monitoring and control
Establish a full compliance regime for CBW operators and provide sanctions for violations
Define duties, responsibilities, and accountabilities of BOC personnel and CBW operators

Transfers of Goods to CBWs: Goods transfer to CBWs requires mandatory non-intrusive inspection at the port of discharge (whether WSAD or TSAD). If the goods are not placed under an Alert Order or chosen for physical/non-intrusive examination, an immediate transfer is possible.
Storage Period of Bonded Goods: Goods can remain in a CBW for up to one year from arrival (extendible for valid reasons). Perishable goods have a three-month maximum. Common Bonded Warehouses (CCBWs) calculate storage from the arrival of goods at the mother warehouse.
Allowable Importations: Importations are limited based on the CBW's authority/license, specific raw materials, quantity, and the type of CBW
Non-importation of Finished Goods for warehousing unless part of another manufactured/exported finished good.
Restricted and Regulated Goods: Entry or storage of these goods requires the appropriate clearance and authorization
Withdrawals for Local Sales/Domestic Consumption: Withdrawals for such consumption are permitted with District Collector approval and payment of taxes, limited to 30% of total bonded materials brought in for the year.

Application is filed with the Collection District responsible for the location
Includes details about the premises, location, capacity, and purpose of the proposed facility.
Necessary Documents:
- BOC Accreditation as an importer
- Lease contract/title to the property.
- Maps, layouts, structural diagrams
- Inventory, office spaces, and any relevant details.
- Feasibility study.
- Monthly raw material importation requests
- Compliance with all requirements

Renewal applications are due 120 days before the expiration of the authority and must be filed properly with the relevant Collection District.
Additional documents required for renewal:
- Current Importer's Accreditation
- Income Tax Returns or Audit Financial Statement
- Performance Clearance documents

Conform to Section 3.1 procedures for CBW approval, and include documents relating to membership intent, debt-free status with former CCBW, and written approval from the former CCBW

Firm must meet criteria outlined in CMO and submit supporting documents including a Service Agreement or Memorandum of Understanding

Companies can apply if they meet the requirements for CBW operation
Applications must include details of any contracts, material requirements, and the products they plan to produce.

Operators apply for company accreditation to support their client exporters
Additional requirements for applications may include export accreditations and related documents

Applications must be completed 91 days prior to expiration
Includes details about ongoing obligations, financial statements, and updated details about the firm's operations.

Goods can be withdrawn under several circumstances, including for production, export, or sale to other CBWs.
The necessary forms and supporting documents are detailed in the notes.

Wastages, rejects, and by-products can be addressed through consumption, re-exportation, or condemnation, following specific procedures.

Goods that are not processed or exported within the permitted time are considered abandoned.
The operator has the option of paying taxes, exporting the goods, or abandoning them formally.

The CBW can be closed for various reasons, including fraud, inactivity, violations, or structural/usage issues.
The process includes a closure order and required procedures for closing and transferring any remaining goods.

Regular inspections and inventories of CBWs are required for compliance verification and to ensure there are no violations.
Includes lists of documents required and the process for the checks.