The Central Board of Indirect Taxes and Customs ( CBIC ), vide circular no. 16 /2024-Customs dated 17th September 2024 has postponed the implementation of automation in customs for EOUs ( Export Oriented Units ) to 25th September 2024. Initially it was scheduled on 1st september, 2024.
Prior, the CBIC issued two key circulars, Circular No. 11/2024-Customs dated August 25, 2024, and Circular No. 13/2024-Customs dated September 4, 2024, pertaining to the implementation of automation in the Import of Goods at Concessional Rate of Duty ( IGCR ) Rules, 2022, specifically for EOUs.
Essential Training for Tax Professionals: Know Your Sections!
Initially, the automation process was scheduled to take effect on September 1, 2024, requiring all EOUs to obtain an IGCR Identification Number ( IIN ) through the ICEGATE portal by registering as SEZ units to become ICEGATE-enabled. This move towards automation is intended to streamline processes under the IGCR Rules and enhance operational efficiency for EOUs.
However, numerous representations have been submitted by various EOUs and the Export Promotion Council for EOUs and SEZs, stating several challenges encountered during the registration process, the generation of IIN details, and the utilisation of continuity bonds. These difficulties could potentially lead to delays in the clearance of goods, which would adversely affect the operational timelines and business outcomes for EOUs.
Essential Training for Tax Professionals: Know Your Sections!
Recognizing these concerns, the CBIC has decided to postpone the implementation of the automation process under Circular No. 11/2024-Customs. The new implementation date has been set for September 25, 2024. This delay is aimed at giving EOUs more time to complete the necessary registrations and address the technical challenges they are facing in obtaining IINs and managing continuity bonds.
To facilitate this transition, the CBIC has also requested that suitable public notices be issued to guide EOUs through the revised implementation process. Stakeholders facing any challenges or having doubts regarding the implementation of these circulars are encouraged to bring their issues to the attention of the Board.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
