Manufacture Under Bond (MUB)
Manufacture under Bond refers to an incentive extended to manufacturers import plant, machinery, equipment and raw materials tax free, for exclusive use in the manufacture of goods for export.
It is meant to encourage manufacturers, both local and foreign, to manufacture for export within the country.
- Any person applying to be registered as an operator in an MUB should:
- Apply using Form C22
- Submit plans and location of the proposed bonded factory in relation to surrounding premises
- If the Commissioner grants approval then a license is issued using Form C23 and a bond is executed by the licensee using Form CB6
- The annual licence fee is US$1500; or a prorated sum where a licence has been issued in the course of a calendar year.
- Bonded factories are identified using a specific number and the words "Customs Bonded Factory" displayed at the main entrance to the customs bonded factory or any other place approved by the Customs.
- Alteration to a bonded facility should not be made without the Commissioner’s authority. Alteration done without the authority of the Commissioner is an offence whose fine is US$1000 or less.
- All manufactured goods are to be stored in the “manufactured goods stock room”. When a bonded factory closes, all goods should be moved within 30days.
- The licensee should make returns of all the goods left in a bonded facility for the period as at 30th June of each year. All returns should be made by 31st July of each year.
- All waste and rejects from the manufacture of goods handled should be stored separately in the Waste and Rejects Stock Room.
- If the circumstances affect the licensee, the surety should notify the Commissioner of such circumstances.
- If the circumstances affect the surety, the licensee should notify the Commissioner of such circumstances.
Importation and Removal of Goods from an MUB:
- Goods to be used by factories in MUB are entered using Form C17.
- All goods destined for MUB or for removal from bonded factories are consigned to the proper officer.
- The proper officer tallies the goods received and record them in there appropriate registers.
- The cargo receipt and other relevant documents should be clearly marked, "under bond”.
- The bonded factory operator, on receiving the goods, should record the imported goods in the imported machinery and materials register; and locally obtained goods in the local machinery and materials register.
- All the registers of manufacture under bond maintained by the manufacturer and should be availed to the proper officer for inspection.
Removal of goods from a bonded facility:
Once manufactured, goods can be removed from the bonded facility for export or for another bonded factory. The procedures followed are as follows:
- Entry should be made using Form C17
- A bond for the removal of goods from a bonded factory for exportation should be executed using Form CB4
- Goods should be transported to the final exportation port in sealed vehicle or containers except in cases of exceptional loads.
- A certificate of exportation or a certificate of receipt should be issued by the proper officer as proof of exportation or receipt of the goods.