Can an existing factory which solely manufactured goods to be sole in the domestic market, obtain a license under Section 65 and Section 58 of the Customs Act, 1962?


Suresh Suresh
Answered on February 17,2020

The eligibility of a factory for a license under Section 58 of the Customs Act along with a permission under Section 65 does not depend upon whether the final goods will be sold in the domestic market or exported. There is no restriction on selling 100% of the finished goods in the domestic market.  A factory can avail a license under Section 58 of the Customs Act along with a permission under Section 65, if they intend to import goods and deposit them in the warehouse, either capital goods or inputs, and carry out further processing in the premises involving the goods.