1.
Procedure
to be followed by an importer
1.
One-time
prior intimation of intent to avail IGCR Benefit:
2.
Import
of goods at concessional rate
3.
Receipt
of goods
4. Goods sent for job work from importers premises
5. Receipt of goods from the job worker
6.
Inter-Unit
transfer of goods
7.
Utilization
of goods for intended purpose
8.
Re-Export
or clearance for home consumption
9.
Monthly
statement and maintenance of account
10.
Transitional
measures
11.
Annexure-I:
Bond Format for Import of Goods at Concessional Rate of Duty
12.
Annexure-II:
Bond Addendum with Provision for Addition of Security
Subject: Implementation of
automation in the Customs (Import of Goods at Concessional Rate of Duty) Rules,
2017 with effect from 01.03.2022.
Reference is drawn to the Customs (Import of Goods at
Concessional Rate of Duty) Amendment Rules, 2022 notified vide Notification No. 07/2022-Customs
(N.T.) dated 01.02.2022 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). These changes come into effect
from 1st March, 2022.
2. The amendments are aimed at simplifying the procedures
with a focus on automation and making the entire process contact-less.
3. These include:
a) The process is
being automated. The Rules prescribe the submission of the necessary details
electronically, through the common portal. (The common portal is the one
notified vide notification 33/2021 dated 29-03-2021 and accessible at the URL
www.icegate.gov.in).
b) The various
forms have been standardized and notified for the purpose of electronic
submission of details.
c) Individual
transaction based permissions and intimations, such as intimation of the
intent to import goods at a concessional rate of duty, intimation of the
receipt of goods, permission to re-export or clear goods domestically etc, are
all being done away with.
d) A monthly
statement would to be submitted by the importer on the common portal
e) A procedure for
inter-unit transfer of the imported goods has been provided for.
f) An electronic
option for voluntary payment through the common portal, as specified in the
Rules, is also being developed for implementation.
4. Procedure to be followed by an importer
For ease of understanding, the procedure set out in the
IGCR Rules, 2017 and the clarifications for smooth implementation are
summarized below:
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. This information shall be provided on the common portal in form
IGCR-1. (refer rule 4).
4.2 Subsequently, upon acceptance of such information on
the common portal, a unique IGCR Identification Number (IIN) shall be
generated. This information is also made available through the common portal to
the jurisdictional customs officer as well as the officers at the respective
port of import. The importer also has an option to update the form IGCR-1 in
case of any change in the details.
4.3 It is clarified that in the case of units already
covered under the existing provisions of IGCR Rules, 2017, the importers shall
record electronically such details of intimation given in form IGCR-1 on the
common portal and generate an IIN against the same.
4.4 The importer is required to furnish a one-time
continuity bond, in a format provided in annexure-I to this Circular, to cover
all the imports undertaken under this procedure. The bond details such as
amount of the bond etc. shall be filled up by the importer on the common portal
in part B of the form IGCR-1.
4.5 Subsequently, the physical copy of the bond and bank
guarantee, wherever applicable, shall be submitted by the importer to the
jurisdictional officer. Upon acceptance, the jurisdictional customs officer
shall approve the bond request on the Customs Automated System.
4.6 The details of the bond number and bank guarantees
will then be available for the importer to see on the common portal. The
importer shall also have an option of topping up the amount of the bond and
adding the details of the bank guarantee on the common portal and by providing
bond addendum to the bond for adding bank guarantee as per the format given in
Annexure-II.
4.7 It is clarified that if the bond/bank guarantee has
already been furnished to the jurisdictional officer, there is no requirement
to give a fresh bond/bank guarantee. The jurisdictional officer shall enter the
details of such bond/bank guarantee in the customs automated system and
generate the bond number.
Import of goods at concessional rate
4.8 The importer shall mention the IIN and the continuity
bond number and details while filing the bill of entry at the port of import.
On the basis of the same, the Deputy Commissioner or Assistant Commissioner of
Customs at the port of importation shall allow the benefit of exemption
notification. Once a bill of entry is cleared for home consumption, the bond
submitted by the importer gets debited automatically in the customs automated
system. These details shall be available to the jurisdictional customs officer
through the common portal. (refer rule 5)
Receipt of goods
4.9 These Rules cover the receipt of goods in three
scenarios:
(a) Goods are
received in the premises of the importer;
(b) Goods are
directly received at the premises of the job -worker; or
(c) Goods are partly
received at the importers and partly sent to the job workers premises
In all such cases, the requirement of intimating the
receipt of the goods has been done away with. However, any non-receipt or
short-receipt of the goods shall be intimated by the importer immediately on
the common portal through form IGCR-2. This intimation shall be on the basis of
the IIN and details shall be provided against each bill of entry, invoice and
item. (refer rule 6)
Goods sent for job work from importers premises:
4.10 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 under the cover of an invoice or wherever
applicable, through an e-way bill specifying the description and quantity of
goods. It is clarified that the requirement of an intimation when sending goods
for job work, has been done away with. The importer shall maintain a record and
mention such details in the monthly statement.
4.11 The maximum period for which the goods can remain
with the job worker shall be six months from the date of invoice or e-way bill.
Receipt of goods from the job worker:
4.12 After the completion of job work, there can be three
scenarios
(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 all such cases, the goods shall be sent under an
invoice or wherever applicable, e-way bill. The importer shall maintain a
record of such movement of goods and mention the details in the monthly statement.
Inter-Unit transfer of goods
4.13 A separate provision has been included for unit
transfer of goods, where goods are sent to a different unit of the same
importer. The goods, in such cases shall be sent under an invoice or wherever
applicable, e-way bill, mentioning the description and quality of goods.
Utilization of goods for intended purpose
4.14 It is clarified that the importer who has availed
the benefit of an exemption notification shall use the goods imported in
accordance with the conditions specified in the exemption notification within
six months from the date of import. In case of goods that have not been
utilized or defective goods, the importer has an option to either re export
such goods or clear the same for home consumption within the said period of six
months.
4.15 Further, in all cases where the import at
concessional rate is governed by condition no. 108 of the notification
50/2017-Customs, the export of manufactured goods should be completed within
six months from the date of import.
Re-Export or clearance for home consumption:
4.16 In case an importer opts to re-export such goods, he
shall record the details of export documents such as shipping bill number,
shipping bill date and the port of export. These details shall be specified
against the bill of entry, invoice and item details of the goods imported.
4.17 In case the importer intends to clear the
un-utilized 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 arate 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.
4.18 An option is available to the importer to clear the
capital goods imported, on payment of duty along with interest, at a
depreciated value, after they have been put to use.
4.19 The particulars of such clearances and duty payments
shall be recorded by the importer in the monthly statement. The importer shall
pay such duties and interest using manual challan at the port of import. An
option for voluntary payment through the common portal, as specified in the
Rules, is under development for being enabled shortly.
Monthly statement and maintenance of account
4.20 Instead of the quarterly return prescribed earlier,
the importer shall submit a monthly statement by the tenth day of the following
month, on the common portal in the form IGCR-3 prescribed. (refer
rule 6). It is clarified that the first monthly statement under the changed
procedures shall be submitted by the importers in the month of April 2022.
4.21 The importer shall, with respect to the goods
imported, maintain an account as prescribed in rule 6. Further, with respect to
inter-unit transfer of goods, the importer shall maintain an account as
prescribed in rule 6B. These accounts shall be produced by the importer to the
jurisdictional Deputy /Assistant Commissioner of Customs as and when required
by the said officer
4.22 The job-worker shall also maintain an account as
prescribed in rule 6A which shall be produced to the jurisdictional customs
officer, as and when required by the said officer.
5. An 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. Transitional measures
6.1 In order to account for the stock of goods imported
under IGCR that are already existing in the premises of the importer or job
worker on the date of transition to the new procedure, an option is being
provided to the importer to record the details of all such goods according to
the bills of entry, invoice and item, in the monthly statement by linking their
past bills of entry in the common portal.
6.2 The details of the existing bonds under IGCR shall be
entered into the customs automated system by the jurisdictional officers and
the amount of surety/bank guarantee shall be determined in accordance with the
Customs circular 48/2017 dated 08.12.2017.
6.3 While the system architecture to provide information
in the forms prescribed shall be in place from 01-03-2022 ,
to enable a smooth transition, importers shall have an option to submit
procurement certificates for import of goods at the port of import for availing
the exemption benefit till 13-03-2022.
6.4 Currently there is a requirement for EOUs to follow
Rule 5 of Customs (IGCR) Rules, 2017 to be eligible for claiming exemption of
duties/ taxes on the import of goods. The system architecture with respect to
above rule in respect of EoUs is under development. The same shall be
implemented in due course. Till such date, procurement certificates can
continue to be submitted by the EOUs for import of goods in lieu of generating
IIN in the system.
7. For ease of reference of the importers, the district
wise list of jurisdictional customs officers, their contact details and their
jurisdictions have been mapped and published on the CBIC website. The same can
be accessed at
https://www.cbic.gov.in/htdocs-cbec/home_links/enquiry-points-home.
8. The Board Circulars
Nos. 25/2017- Cus
(N.T.) dated 30.06.2017, 29/2017 -Cus (N.T.) dated 17.07.2017
and 10/2021 Cus (N.T.) dated 17.05.2021
may be considered modified to that extent. The DG Systems is also requested to
issue system advisory to the Trade and Officers on the system implementation
aspects.
9. Suitable Public Notices may please be issued to guide
the trade/industry. The trade should be proactively assisted during the
transition period keeping in view the resolve to provide an enabling
environment for manufacturing. Standing Orders may be issued for the officers
and staff. Difficulty, if any, faced in the implementation may be brought to
the notice of Board immediately at the email id dircus@nic.in.
F.No.
450/28/2016-Cus-IV
With request as mentioned in para 8 of the circular
Annexure-I
BOND FORMAT FOR IMPORT OF GOODS AT CONCESSIONAL RATE OF DUTY
KNOW ALL MEN BY THESE PRESENTS THAT I/We,
M/s
. having registered office located at
. .and
holding Import-Export Code No
. hereinafter called the obligor(s) (which
expression shall include my/our
successors/heirs, executors, administrators and legal representatives)
are held and firmly bound unto the President of India hereinafter called the
President (which expression shall include his successors and assigns) in the
sum of Rs
. .(Rs
. ) to
be paid to the President for which payment well and truly to be made, I/we bind
ourselves, my/our successors, heirs, executors, administrators and legal representatives
firmly by these presents.
For surety bond only
KNOW ALL MEN BY THESE PRESENTS THAT I/We,
M/s
having registered office located at
. .and holding
Import-Export Code No
. hereinafter called the obligor(s) (which expression
shall include my/our successors/heirs, executors, administrators and legal
representatives) and
of
. hereinafter called the
surety(ies) are held and firmly bound unto
the President of India hereinafter called the President (which expression
shall include his successors and assigns) in the sum of Rs
. .(Rs
. ) to
be paid to the President for which payment well and truly to be made, I/we bind
ourselves, my/our successors, heirs, executors, administrators and legal representatives
firmly by these presents.
Sealed with my/our seal(s) this
. day of 20
..
WHEREAS the obligor desires from time to time to import
or export goods in accordance with notifications under section 25 of the
Customs Act, 1962 read with the Customs (Import of Goods at Concessional Rate)
Rules, 2017.
For bond with security
AND WHEREAS the Commissioner has required the obligor to
deposit security for the amount of this bond/ the sum of
in
cash (the securities as hereinafter mentioned of a total of
.
rupees endorsed in favour of the For President and accepted on his behalf by
the Assistant Commissioner of Customs,
.. and whereas the obligor has
furnished securities amounting to Rs
. by depositing with the officer
aforementioned. The obligor undertakes to deposit the balance security as and
when he intends to avail the benefit of duty exemption on goods imported under
the said notifications.
NOW THE CONDITION of this written bond is such that
The Obligor undertakes to fulfill obligations as
applicable from time to time in
the event of import and export without payment of duty or on payment of
concessional duty in terms of the notifications issued section 25 of the
Customs Act, 1962 read with the Customs (Import of Goods at Concessional Rate)
Rules, 2017, the obligor shall fulfill the following
obligations:
a.
observe all the terms and conditions of the said notification(s) in respect of
imports and exports from time to time; and
b. in the event of failure to fulfil full or part of the
conditions as specified in the said notification(s), undertake to pay the
customs duty but for the exemption and also interest at the applicable rates
per annum thereon forthwith and without any demur, to the Government.
AND if the obligor has duly imported or exported goods
subject to the above provisions and if the obligor has satisfied the above
conditions, in respect of the said goods imported or exported from time to
time, this obligation to that extent shall be void.
AND IT IS HEREBY AGREED AND DECLARED by the obligor as
follows:-
A) This bond is given under the orders of the Central
Government for the performance of an act which is in public interest.
B) The President through Commissioner or Customs or any
other officer of Customs shall recover the said sums due from the obligor(s) in
the manner laid down in subsection (1) of Section 142 of the Customs Act, 1962
without prejudice to any other mode of recovery.
For surety bond only
Provided always that the liability of the surety
hereunder shall not be impaired or discharged by reason of any time being
granted or any forbearance, act or omission of the Government (whether with or
without the knowledge or the consent of the surety) in respect of or in
relation to the obligation and condition to be performed or discharged by the
obligor(s) nor shall it be necessary to sue the obligor(s) before suing the
surety for amounts hereunder;
For bond with security
AND the President shall, at his option, be competent to
make good all the loss and damages from the amount of the security deposit or
by endorsing his rights under the above-written bond or the both;
And the President of India shall, at his option, be
competent to make good all the loss and damage by endorsing his rights under
the above written bond.
In these presents the words imposing singular only shall
also include the plural and vice versa where the context so requires;
C) This bond shall remain in force from the date hereof
and the obligation and liability of the obligor shall be a continuing one in
respect of all goods imported or exported from time to time by the obligor.
IN WITNESS WHEREOF these presents have been signed this
day________ of_________ 20_______ herein before written by the obligor(s) and
the surety(ies).
Place:
Date:
(Signature
of the Obligor)
(Signature
of the surety(ies))
Witnesses:
1.
2.
Accepted
for and on behalf of the President of India on___________________ day of 20.
Signature
and date
Name__________
Designation_____
Annexure-II
BOND ADDENDUM WITH PROVISION FOR ADDITION OF SECURITY
KNOW ALL MEN BY THESE PRESENTS THAT the Proper Officer of
Customs has been pleased to accept on behalf of the President of India the bond
for the purposes of import or export goods in accordance with notifications
under section 25 of the Customs Act, 1962 read with the Customs (Import of
Goods at Concessional Rate) Rules, 2017, executed by us vide request dated
.
and assigned the Bond Number
.
And
WHEREAS
I/We, the importer/exporter, [hereinafter called the
obligor(s)], has/have deposited with the Principal Commissioner of Customs or
Commissioner of Customs, as the case may be, at
. (location), a
security/bank guarantee of amount Rs
. for IEC No
with reference
No
issued by
.. in favour of O/O Commissioner of Customs
.
for the due observance of and performance of the terms and undertakings on my
part and for being applied in part or full towards the indemnity hereby given
in terms of the Bond aforementioned, or otherwise according to law. Further,
the obligor undertakes to deposit the balance security, if required, as and
when he desires to import or export under the above provisions.
NOW, IT IS HEREBY AGREED AND DECLARED that
i. The President or the Proper Officer, without prejudice
to any other mode of recovery may, inter alia, adjust the security deposit /
securities in part or full towards the dues arising out of non-compliance of
conditions in afore stated bond.
ii. In case the proceedings are not final, the
obligor(s)
. .agree to renew the security/bank
guarantee before 15 days of expiry of the security/bank guarantee, failing
which, the bank guarantee shall be encashed by the department.
The
Schedule of Securities above referred to
[Particulars
of the amount deposited, along with consignments, if any]
IN WITNESS WHEREOF these presents have been signed this
day________ of__________ 20________ herein before written by the obligor(s) and
the surety(ies).
Place:
Date:
(Signature
of the Obligor)
Name
of Obligor
..
Designation
..
Accepted
for and on behalf of the President of India on_______________ day of 20 .
Signature
and date
Name__________
Designation_____