Circular No. ES/47/2021-22 18th May, 2021
To: Members of the Council
Sub: Changes introduced through the Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2021
CBIC has issued Circular No.10/2021-Customs dated 17th May, 2021 regarding the changes introduced through the Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2021.
Reference is drawn to the Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2021 notified vide Notification No. 09/2021-Customs (N.T.) dated 02.02.2021 so as to make certain amendments in existing Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 (hereinafter referred to as “IGCR Rules, 2017”) that took effect from 2nd February, 2021.
The aforementioned Amendment Rules have been introduced in view of the demands from the trade and industry and having regard to their changing needs as per prevalent global practices. The amendments are also an effort towards creating an enabling environment for the promoting manufacturing by domestic industry to make them competitive globally and also make them self-reliant in furtherance of the goal of Atmanirbhar Bharat.
The major changes have been brought in the following vide the said Amendment Rules, 2021:
The facility of carrying out job work under the ambit of IGCR has been introduced.
The scope of the job work facility has been extended to an importer who is a manufacturer but without complete manufacturing facility. Also, 100% outsourcing for manufacture of goods on job-work basis has been permitted for importers who do not have any manufacturing facility at all. However, sensitive sectors such as gold, articles of jewellery and other precious metals or stones have been excluded from the facility of job work.
Import and clearance of capital goods:
An option has been given to the importers to import capital goods for a specified purpose at a concessional rate of duty and after having put such capital goods to use for the said purpose, clear the same after payment of the differential duty and interest, at a depreciated value, with permission from the jurisdictional Customs Officer.
Bringing more end-use based exemptions under the ambit of IGCR Rules, 2017:
At present, there are certain end-use based exemptions in Notification No. 50/2017-Customs, dated 30.06.2017 which are being administered without the need to follow the procedure set out under the said IGCR Rules, 2017.
With an intention to bring forth uniformity in the procedures for end-use based exemptions, the condition of compliance of the said IGCR Rules, 2017 is being provided for certain entries and these have already been notified by amending the said Notification.
For the sake of clarity, CBIC has also set out procedures in the IGCR Rules, 2017.
For more detailed information, members may kindly refer to Circular No.10/2021-Customs dated 17th May, 2021.
Members may kindly make a note of the above.