Customs (Import of Goods at Concessional Rate of Duty) Rules: Changes:
The Government has brought changes in the existing Customs (Import of Goods at Concessional Rate of Duty) Rules, IGCR 2017 to boost trade facilitation.
- The Central Board of Indirect Taxes and Customs has introduced changes through the Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2021.
- The IGCR, 2017 lays down the procedures and manner in which an importer can avail the benefit of a concessional Customs duty on import of goods required for domestic production of goods or providing services.
- One major change that accommodates the needs of trade and industry is that the imported goods have been permitted to be sent out for job work.
- The absence of this facility had earlier constrained the industry especially those in the Micro, Small, and Medium Enterprises sector which did not have the complete manufacturing capability in-house.
- Importers who do not have any manufacturing facility can now avail of the IGCR, 2017 to import goods at concessional Customs duty and get the final goods manufactured entirely on a job work basis.
- However, some sectors such as gold, jewelry, precious stones, and metals have been excluded.
- Another major incentive now provided is to allow those who import capital goods at a concessional Customs duty to clear them in the domestic market on payment of duty and interest, at a depreciated value.
- This was not allowed earlier and manufacturers were stuck with the imported capital goods after having used them as they could not be easily re-exported.