Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2021

The CBIC has now issued a Circular No.10/2021-Customs, dated 17th May 2021 in order to assist the trade in understanding the improvements in the IGCR, 2017 so that they may make full use of the new facilities.

The IGCR, 2017 lay 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. The major changes brought forward through IGCR Amendment rules,2021 are:

Job Work:

The importer can send the goods to job work for processing or manufacturing purposes. This clause is introduced to support the importers who doesn’t have complete manufacturing facilities in their premises. 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:

The importers can 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 (allowed in straight line method), with permission from the Jurisdictional Customs Officer.

The depreciation rates mentioned in rules are as follows:

  1. for every quarter in the first year @ 4%;
  2. for every quarter in the second year @ 3%;
  3. for every quarter in the third year @ 3%;
  4. for every quarter in the fourth and fifth year @ 2.5%;
  5. and thereafter for every quarter @ 2%

Online submission of compliances:

The Directorate General of Systems, CBIC, is in the process of automating and facilitating online submission of compliances prescribed in the rules through the ICEGATE portal, thereby obviating the need for furnishing paper-based documents to the Customs Officer. Meanwhile, in order to facilitate the trade, it is proposed to route all the intimations and other communications specified in the said IGCR Rules, 2017, as amended, vide email to the Customs Officers concerned.

Disclaimer:“Information contained herein is for informational purposes only and should not be used in deciding any particular case. The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Though utmost efforts have been made to provide authentic information, it is suggested that to have better understanding and obtaining professional advice after thorough examination of particular situation.”

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Prepared By

Sai Srikar Kalivarapu

Article Assistant

Date: 5-11-2021