Monday, 12 September 2022

Amendment in Customs IGCR Rules to include imports for specific end use

 The Government vide. Notification No. 74/2022-Customs (NT) dated September 9, 2022, has notified the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 ('IGCR-SEU Rules').

 

The Central Board of Customs and Indirect Taxes (‘CBIC’) has also issued the Circular No. 18/2022-Customs dated September 10, 2022, in this regard.

 

These rules are notified in supersession to Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 ('IGCR Rules').

 

Key amendments include:

 

·                Relaxation in time period for re-export or clearance of unutilised or defective goods

 

·                A new Form IGCR-3A has been notified for consumption of goods which would enable automatic re-credit of bond

 

·                The major amendment pertains to the exemptions granted to importers for supplying the imported goods to end use recipient.

 

Some instances of such exemptions are as under:

 

Serial No. 259 of the Notification No. 50/2017-Customs dated June 30, 2017

 

"Raw materials for use in manufacture of security fibre and security threads for supply to Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Private Limited, Mysore for use in manufacture of security paper"

 

Serial No. 292 of the Notification No. 50/2017-Customs dated June 30, 2017

 

"(A) All goods imported for use in, or supply to, a unit for manufacture of paper or paperboard other than newsprint

 

(B) All goods, imported for use in, or supply to, a unit for manufacture of newsprint"

 

Notification No. 57/2017-Customs dated June 30, 2017

 

Multiple entries relating to end-use

 

 | Remarks

 

The IGCR-SEU Rules is notified to provide the compliance procedure for importers who were not actually using the imported goods but availing the benefit under erstwhile IGCR Rules.

 

Further clarity needed for reporting of capital goods, in the months succeeding the month of their installation. The current Form IGCR-3 or IGCR-3A seems to cover only the raw materials.

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