I am new to CIN. The existing process of my client in aspects of Import purchase are as follows:
1. Purchase order against import vendor
2. MIRO raised against Commissioner of Customs - Payment of Import duties.
4. MIRO against the import vendor.
Now my client like to come up with a bonded warehouse plant by which they get an option to keep the material at the warehouse for 90 days without paying the customs duties.
After completion of 90 days, they would pay the duties & move the stock to factory plant.
In that case the business process flow would be,
1. PO against import vendor - Bonded warehouse plant
2. MIGO - Only Stock a/c and GR/IR are to be accounted, no accounting of CVD & customs clearing should be happened. (Storage location - RM Non duty paid)
3. MIRO against Import vendor - Only vendor a/c & GR/IR are to be accounted.
After the completion of 90 days,
4. MIRO against Commissioner of Customs - CVD & Customs clearing should be accounted here. Duty cost should be added to Inventory.
5. Transfer from one storage location (Non duty paid) to another storage location (Duty paid). Cenvat credit has to be availed in this process.
Please help me out on where to start, and the steps ? Thanking you in advance.