CBIC issues new IGCRS Rules, 2022

by | Sep 21, 2022 | Outlook

We intend to apprise you that the Government has replaced the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 (‘IGCR Rules, 2017’) with the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 (‘IGCRS Rules, 2022’). The CBIC has introduced these Rules vide Notification No. 74/2022 – Customs (N.T.) dated September 9, 2022 effective September 10, 2022 and also issued Circular No. 18/2022-Customs dated September 10, 2022 (‘Circular’).

CBIC had recently introduced significant changes to simplify and automate the procedures of the IGCR Rules, 2017 vide Notification No. 9/2021 – Customs (N.T.) dated February 1, 2022 read with Circular No. 4/2022 dated February 27, 2022. The key highlights of changes introduced through the IGCRS Rules, 2022 are encapsulated below:

A. Specified End use:

• Scope of the IGCRS Rules, 2022 has been widened vis-à-vis the IGCR Rules, 2017 to provide its applicability even to imported goods which have been notified for specified end use apart from goods imported for manufacturing or for providing output services.

• Following provisions with respect to Specified End use, have been introduced:

– End use may be specified by a Notification issued under Section 25(1) or Section 11 of the Customs Act, 1962.

– If no differential duty is involved, the value of bond shall be equivalent to assessable value of goods.

– Where intended purpose of import is supply of goods to an end use recipient, the importer shall supply these goods under an invoice or through an e-way bill (as case may be) with description and quantity of such goods.

– Importer shall need to maintain record of all goods supplied in a month and furnish details on Common Portal in Form IGCR-3 (i.e. monthly statement).

– Restrictions on job work are only relating to the case where it is undertaken on goods belonging to importer and does not apply to the end use recipient who receives the goods on supply and deals with it as stipulated in a separate Notification.

• Procedure of intimation, obtaining unique IGCR Identification Number (‘IIN’), import of goods, submission of bond, maintenance of records, filing of monthly statement in Form IGCR-1 or any other similar procedures will remain same.

B. Time period for utilization of goods:

• Where time period for utilization of imported goods is specified in a separate Notification, such time period will apply else time period of 6 months will apply.

• Jurisdictional Commissioner can further extend such period of 6 months by another 3 months subject to furnishing of sufficient reasons by importer.

C. Bond and Bank Guarantee:

• No requirement to furnish a Bank Guarantee, Cash Security and Surety in following cases:

– Where importer is a department of Central Government / State Government / Union Government / PSU / an autonomous institute under the said Governments; or

– Where importers are Authorized Economic Operators; or

– Importers are nominated agencies for import of gold under the India-UAE CEPA; or

– Designated banks nominated by RBI as well as PSUs importing under specified Notifications.

D. Amendment in Form IGCR-1 and IGCR-3

• Changes have been made in Form IGCR-1 to capture details where intended purpose is export of goods using the goods imported.

• Corresponding changes have been made in Form IGCR-1 and Form IGCR-3 to capture different intended purposes (manufacturing, import for specified end use, export of goods using goods imported, supply to end use recipient or for provision of output service) and other additional details.

E. Facility of immediate re-credit of bond:

• A new Form IGCR-3A has been introduced under proviso to Section 6(2) of the IGCRS Rules, 2022 capturing details of goods consumed for intended purpose at any point of time for immediate re-credit of bond without waiting for filing of Form IGCR-3 on 10th of every month.

• Details of Form IGCR-3A will be auto-populated in Form IGCR-3 of subsequent month, which will need to be confirmed by importer.

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