You will require this approval if you intend to manufacture goods in a warehouse, using imported components on which duty has not been paid. A firm with Manufacturing in Bond Approval will be able to import dutiable goods into a licensed warehouse free of Goods and Services Tax (GST) and duty.
If these goods are subsequently re-exported, either in their original or manufactured form, no duty or GST liability is incurred.
Imports brought into the warehouse and subsequently entered for home consumption (sold in the domestic market) incur a duty and GST liability at the time they leave the warehouse.
