Bonded and non-bonded manufacturing – a comprehensive guide(1)

Bonded and non-bonded manufacturing

Manufacturing processes can be categorized into bonded and non-bonded manufacturing, each presenting distinct methods in the realm of production and supply chain management.

Bonded manufacturing

It means the premises or any part of the premises approved and licensed for the mfg. and storage of medicinal & toilet preparation containing alcohol or narcotic drug in which duty has not been paid.

Bonded and non-bonded manufacturing
main point on bonded manufacturing

Conditions for bonded manufacturing

1. Applicants name – the name and address or address of the applicant. In case of a firm, the name & address of every partner. In case of a company its registered name and address the name & address the name & address of its director manager and managing agents.

2. Address – Address of the place and site on which the bonded or non-bonded lab is situated.

3. The amount of capital proposed to be invested.

4. The number and full description of the vats, stills and other permanent apparatus machinery which the wishes to set up.

5. The maximum quantities in L.P.  of alcohol and alcoholic content in unfinished and finished preparation likely to remain in the laboratory at any one time and like for Indian hemp, opium &  narcotic drug.

6. In case of bonded laboratory, whether the proposed bonded manufacturing will require the service of a whole time or part time excise officers.

7. List of preparation containing alcohol, license no issue but license authority under DCA.

8. Site & elevation plans of the manufactory buildings showing the location of the different rooms with doors and windows therein.

Non-bonded manufacturing

It means the premises or any part of the premises approved and licensed for the mfg. and storage of medicinal and toilet preparation containing alcohol or narcotic drug or which duty has been paid.

main point on non-bonded manufacturing

Conditions for non- bonded manufacturing

1. Separate laboratory spirit store and finished store.

2. Only one entrance to non-bonded manufacturing and one for each into laboratory spirit store and finished store.

3. Separate store for spirit purchases at the specified drug.

4. All pipe from sinks or wash basins in the lab, should be connected with the general lab.

5. All electrical & gas connection should be such that their supply can be cut off at the end of the day’s work.

Differences between bonded and non-bonded manufacturing

Bonded manufacturing Non-bonded manufacturing
1. Excise duty payable on removal goods from lab.1. Excise duty payable.
2. It is function under excise staff.2. No-excise staff required.
3. Suitable for large scale mfg.3. Suitable for small scale mfg.

Patient & proprietary

A proprietary medicine is a preparation that is owned or controlled by an individual or individuals. This control is held either by a copyright or trade name or by patient. Proprietary means controlled by copyright or trade name.

London proof spirit

London proof spirit means that mixture of ethyl alcohol & distilled water which at temperature of 51°F weight exactly 12/13th parts of an equal measure of distilled water at the same temperature.

What can an excise officers do:

1. He/she inspection

2. Entry, search, seize

3. Detention of persons

4. Suspension of license.

5. Notice

6. Power of arrest

7. Power of make rule

Responsibilities of excise officers

1. Correct collection of duty & penalties.

2. Articles seized should be handed to officer in charge of the police station.

3. Articles seized should be disposed speedily.

4. Person arrested should be forwarded without any delay to higher authorities is empowered to produce him/her against magistrate(DM).

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