The Central Board of Indirect Taxes and Customs (CBIC) notified the Changes introduced through the Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2021.
The 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.
There are major changes brought in vide the the Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2021.
Firstly, in respect of Job Work, 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 a complete manufacturing facility. Also, 100% out- sourcing for manufacture of goods on a 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.
Secondly, in respect of Import and clearance of capital goods, under this 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.
Thirdly, in respect of 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.
The Board warned that any importer or the job worker who contravenes the provision of the rules shall be liable to a penalty as prescribed in the said rules (refer rule 8A). It is clarified that this is in addition to any other action taken under the Customs Act, 1962 for recovery of duties.
“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 e-mail to the Customs Officers concerned. The list of officers overseeing IGCR rules, 2017 along with their e-mail has been made available on https://www.cbic.gov.in/htdocs- cbec/home_links/enquiry-points-home,” the CBIC in the circular said.
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