The Central Board of Indirect Taxes and Customs (CBIC) has notified the Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2021, it is expected to boost Trade Facilitation.
- It amends the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 (IGCR, 2017).
- IGCR, 2017 lays down the procedures and manner in which importer can avail benefit of a concessional duty on import of goods required for domestic production of goods or providing services.
- The changes were announced by Union Minister for Finance Nirmala Sitharman during the Union Budget 2021-22 session.
i.The new amendment permits imported goods to be sent out for ‘job work’. This facility was absent in the previous act.
- The absence of the facility affected the Micro, Small and Medium Enterprises sector (MSMEs) which did not have complete manufacturing capability in-house.
ii.Importers which do not have manufacturing facilities can avail the IGCR, 2017 to import goods at concessional Customs duty.
- However, this facility is not applicable for sectors like gold, jewellery, precious stones and metals have been excluded from using this facility.
iii.The amendment allows entities/individuals/companies which 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.
- Previously, manufacturers were stuck with imported capital goods (used ones) as they could not be easily re-exported.
iv.Importers taking advantage of concessional rate of import duty should give prior information to the customs officers about goods being imported and also its estimated quantity and value.
Recent Related News:
On 29th March, 2021 Central Board of Indirect Taxes & Customs (CBIC) notified a new single portal “ICEGATE portal” to regulate all registrations, filing of bills of entry, and other documents.
About Central Board of Indirect Taxes and Customs (CBIC)
Chairman – M. Ajit Kumar
Headquarters – New Delhi