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Government of India
Ministry of Finance
Department of Revenue
(Central Board of Indirect Taxes & Customs)
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Circular No.10/2021-Customs
North Block, New Delhi.
Dt: 17th of May, 2021
To,
All Principal Chief Commissioners/ Chief
Commissioners of Customs/ Customs (Preventive),
All Principal Chief
Commissioners/ Chief Commissioners of Customs & Central tax,
All Principal
Commissioners/ Commissioners of Customs/ Customs (Preventive),
All Principal
Commissioners/ Commissioners of Customs & Central tax,
Madam/Sir,
Subject: Changes introduced through the Customs (Import of Goods at
Concessional Rate of Duty) Amendment Rules, 2021- reg.
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.
2. 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.
3. The major changes
brought in vide the said Amendment Rules, 2021, are highlighted as below:
Job Work:
3.1 The facility of carrying out job work under the ambit of IGCR
has been introduced.
3.2 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:
3.3
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:
3.4 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.
4. Procedure to be followed by an importer
For the sake of
clarity, the procedure set out in the IGCR Rules, 2017 is summarised as
follows:
One time - Prior Intimation of intent to avail IGCR Benefit:
4.1
An importer who intends to import goods at a concessional rate of duty shall
give a one-time prior information of such goods being imported to the
Customs Officer under whose jurisdiction, his premises fall (jurisdictional
Customs Officer). He shall also furnish -
(a) the name and address of the
premises of the importer and his job worker, if any;
(b) the CTH, nature
and description of imported goods used in the manufacture of goods at the
premises of the importer or the job worker, if any;
(c) the CTH and
description of goods produced or process undertaken at the manufacturing
facility of the importer and/or his job worker, if any, or both
(d) nature
of output service rendered utilising imported goods.” (refer rule 4).
4.2
The importer is required to submit a one-time continuity bond, to cover all the
imports undertaken under this procedure. It is clarified that an importer can
store goods temporarily at any premises not owned by the importer, prior to
their utilisation at the premises where manufacturing takes place, provided
that the details of such premises are included in the prior information to
be furnished. Also at all such times, the goods must remain under the
control of the importer [refer rule 4 and para 4.1(a) above].
Intimation
before import:
4.3 As and when the details are available, the importer shall
provide information to the jurisdictional Customs Officer regarding the
estimated quantity and value of goods to be imported, the exemption
notification and serial number, the estimated duty forgone and the port of
import with respect to a consignment. This information may be provided by
email on a consolidated basis for a period not exceeding one year rather
than in a transactional manner for every import (refer rule 5).
Clearance
of goods from the port of import:
4.4 The importer shall also provide a copy
of the intimation provided to the jurisdictional Customs Officer (refer para
4.3 above) to the port of import. It is clarified that, for this purpose it
is sufficient to upload such intimation copy on eSanchit and link the same
along with the other documents when filing the bill of entry. On this basis,
the goods shall be allowed clearance at a concessional rate of duty.
Receipt of goods at premises of importer/job worker:
4.5 The receipt of the
imported goods is to be intimated to the jurisdictional Customs Officer. It
is clarified that, goods may also be sent directly to the premises of a job
worker and in such cases, importer shall intimate by email such receipt of
goods to the jurisdictional Customs Officer (of the jobworker) along with the
copy provided to the jurisdictional customs officer (of the importer).(refer
rule 6).
Goods sent for job work from importer’s premises:
4.6 In cases
where the goods are first received at the premises of the importer and are
then to be sent for job work therefrom, the importer shall send the goods after
giving an email intimation to the jurisdictional Customs Officer. Such
intimation may be given periodically job worker wise, latest by 5th of
each month for the goods sent for job work in the previous month. The
importer shall always maintain a proper account of the goods being sent or
received.
4.7 In such intimation, the following details shall be included:
(a) the name, address, GSTIN (or PAN) details of the job worker,
(b) the
CTH, description and quantity of goods being sent, and
(c) nature and
description of the job work to be carried on the imported goods.
4.8 The
importer shall send such goods to the premises of the job worker under a
challan, specifying the description and quantity of the goods. The challan
number and date shall also be specified in the intimation given to the
jurisdictional customs officer (refer rule 6A).
4.9 The jurisdictional
Customs Officer (of the importer) shall forward a copy of such intimation
received, to the Customs Officer under whose jurisdiction, the premises of
the job worker are located. The maximum period for which the goods can
remain with the job worker shall be six months from the date of issue of
challan.
Receipt of goods from the job worker:
4.10 After the completion
of job work, there can be three instances-
(a) the goods are received back
in the premises of the importer, or,
(b) the goods are cleared directly from
the premises of the job worker, or
(c) the goods are sent by the job worker
to another job worker.
In the first two instances (a) and (b), the same may
be updated in the account maintained by the importer and subsequently shown
in the quarterly returns [refer rule 6(2) and rule 6(3) and paras 4.14 and
4.15 below].
In the third instance (c), the goods may be sent to another job
worker against a challan. As against the challan number with which the goods
were sent to the job worker, the job worker shall also send the goods back
to the importer or to another job worker, as the case may be, against a
separate challan or with the same challan of the principal manufacturer
itself, duly endorsed by him [refer subclause (7) of rule 6A].
Re-Export or
clearance for home consumption:
4.11 An importer shall utilise the imported
goods for the intended purpose or re-export the same, within a period of six
months from the date of import, failing which the importer is liable to
payment of duty with interest, as per the procedure laid out in the said
IGCR Rules [refer rule 7(1) and 7(2)].
4.12 In the case the importer intends
to clear the unutilised or defective goods on payment of requisite duty and
interest, the import duty payable would be equal to the difference between
the duty leviable on such goods but for the exemption availed and that
already paid, if any, at the time of importation, along with interest at a
rate as fixed by notification under section 28AA. The period for calculation of
interest would start from the date of import of such goods and end with the
date of actual payment [refer rule 7(2)].
Quarterly return and
maintenance of account
4.13 The importer shall also submit a quarterly
return by the tenth day of the following quarter, in the form prescribed, to
the jurisdictional Customs Officer [refer rule 6(3)]. The following details
are to be furnished in the quarterly return according to each bill of entry
in the form provided in the annexure to the said IGCR Rules,2017-
(a)
Description of goods imported;
(b) Opening balance of goods at the beginning
of the quarter;
(c) Details of goods imported, consumed, re-exported or
cleared in the quarter including -
(i) the quantity and value of goods
imported
(ii) the quantity of goods consumed for intended purpose
(iii)
quantity of goods sent to job worker
(iv) quantity of goods received from
job worker
(v) quantity of goods re-exported
(vi) quantity of goods
cleared in domestic market
(vii) closing balance at the end of the quarter
(d) specified purpose for import of goods at concessional rate;
(e) goods
manufactured or output service provided in the quarter;
(f) whether goods
were used for the intended purpose.
4.14 The importer shall also maintain an
account giving the following details, according to bills of entry –
(a)
The quantity and value of goods imported;
(b) Quantity of goods consumed;
(c) Quantity of goods sent for job work;
(d) Nature of job work carried out;
(e) Quantity of gods received after job work;
(f) Quantity of goods re
exported, if any;
(g) Quantity remaining in stock.
This account shall be
produced to the jurisdictional Deputy /Assistant Commissioner of Customs as
and when required by the said officer [refer rule 6(2)].
4.15 The
job-worker shall also maintain an account giving details of:
(a) receipt of
goods;
(b) manufacturing process undertaken;
(c) waste generated during
the process, if any.
This account shall be produced to the jurisdictional
Customs Officer, as and when required by the said officer.
5. Any
importer or the job worker who contravenes the provisions of these 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.
6. 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/htdocscbec/home_links/enquiry-points-home.
7.
Suitable Trade Notices/ Standing Orders may please be issued to guide the trade
and industry. Difficulty, if any, faced in implementation, may be brought to
the notice of Board immediately.
Yours faithfully,
F.No. 450/28/2016-Cus-IV
(Ananth Rathakrishnan)
Deputy Secretary (Customs)
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