IGCR 2016 for Production from Duty Free Import -
Production Period Increases to Six Months from Three Months
· Utilization Period of imported goods under the IGCR Rules which was
reduced to 3 months from the earlier 6 months vide IGCR Rules 2016 has now been
brought back to 6 months. Hence, time period allowed for utilization of the
imported goods would be 6 months instead of 3 months.
· Industry has asked for a continuity bond to be backed by surety
as per Rule 5(2) of IGCR Rules 2016 and replace it with a simple bond, the new
amendment notification has inserted “security” as an additional way of
compliance in addition to surety.
· Service providers as
additional category covered now with the inserting of rule 2(4). This means
that traders can import, apart from manufacturers, for manufacture in job
workers premises.
[Customs Notification No. 100 (Non Tariff) dated 14th
July 2016]
In exercise of the powers conferred by section 156 of the Customs Act,
1962 (52 of 1962), the Central Government hereby makes the following rules
further to amend the Customs (Import of Goods at Concessional Rate of Duty for
Manufacture of Excisable Goods) Rules, 2016, namely:-
1. Short title and commencement.-
(1) These rules may be called the Customs (Import of Goods at Concessional Rate
of Duty for Manufacture of Excisable Goods) Second (Amendment) Rules, 2016.
(2) They shall come into force on the date of their publication in the
Official Gazette.
2. In the Customs (Import of Goods
at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2016,
(hereinafter referred to as the said rules) in rule 2, after sub-rule (3), the
following sub-rule shall be inserted, namely:-
"(4)_ These rules shall also apply mutatis mutandis to a service provider and any reference to the
expressions manufacture, manufacturer, excise duty and factory in these rules
shall be construed as service, service provider, service tax and registered
premises respectively of a service provider referred to in chapter V of the
Finance Act, 1994 (32 of 1994) and the rules made thereunder.";
3. In the said rules, in rule 5,
in sub-rule (2) after the word, "surety", the words, "or
security" shall be inserted;
4. In the
said rules, in rule 7, for the word, "three", wherever it occurs, the
word, "six" shall be substituted.
[F.No. 450/28/2016-Cus.IV]