CBI Clarification on Customs (Import of Goods
at Concessional rate of Duty or for Specified End Use) Rules, 2022
·
Clarifying the time period of utilisation to be the
time period for compliance and bringing in a provision to extend the said period
in certain cases for the reasons beyond the importer’s control.
·
Prescribing a procedure for immediate re-credit of Bonds
by Jurisdictional customs officer, rather than waiting till the time of filing of
the monthly statement.
·
Expanding the scope of the IGCR procedure applicable
to Specified End Use mentioned in Customs Notifications, i.e. apart from those pertaining
to manufacturing and in respect of those for providing output services. In case
of end use, supply to the end use recipient and the nature of the supply is to be
captured in the IGCR automated module.
·
Changes in the forms to capture the details where intended
purpose is the export of goods using the goods imported.
·
Corresponding changes in the forms to better capture
the 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 additional details such as Sl. No. of the Notification etc.
·
In Rule 13 of IGCRS Rules, 2022, it is mentioned that
reference in any rule, notification, circular, instruction, standing order, trade
notice or other order in pursuance of the Customs (Import of Goods at Concessional
Rate of Duty for Manufacture of Excisable Goods) Rules,1996 and any provision thereof
or to the Customs (Import of Goods at Concessional Rate of Duty for Manufacture
of Excisable Goods) Rules, 2016 and any corresponding provisions thereof or to the
Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 and any corresponding
provisions thereof shall be construed as reference to the Customs (Import of Goods
at Concessional Rate of Duty or for Specified End Use) Rules, 2022.
[CBIC Circular No.18/2022-Customs
dated September 10, 2022]
Subject: Customs (Import of Goods at Concessional
Rate of Duty or for Specified End Use) Rules, 2022 notified vide Notification 74/2022
dated 9th September, 2022
2. CBIC had earlier introduced significant changes simplifying
and automating the procedures in the (Import of Goods at Concessional Rate of Duty)
Rules) IGCR, in short, vide Notification 09/2021-Customs (N.T.) dated February 01,
2021 followed by Circular 10/2021 dated May 17, 2021 and Notification 07/2022-Customs
(N.T.) dated February 01, 2022 followed by Circular 04/2022 dated February 27, 2022.
The online functionality has also been made available on the ICEGATE Portal.
3. Upon consideration of various suggestions to further
facilitate the trade and to expand the scope of application, the IGCRS Rules, 2022
have been notified, while retaining the basic contours of IGCR, 2017. It is pertinent
to note that these changes are of the nature that broaden the scope of coverage
of IGCR and ensure that useful additional data fields are effectively captured.
It is reiterated that these rules are not a departure from the existing procedure
and hence all the clarifications provided vide Circulars 48/2017 dated December,
08, 2017, 10/2021 dated May 17, 2021 and 04/2022 dated February 27, 2022, will continue
be in effect, unless specifically modified by this Circular. The salient changes
include:
a. Clarifying
the time period of utilisation to be the time period for compliance and bringing
in a provision to extend the said period in certain cases for the reasons beyond
the importer’s control.
b. Prescribing
a procedure for immediate re-credit of Bonds by Jurisdictional customs officer,
rather than waiting till the time of filing of the monthly statement.
c. Expanding
the scope of the IGCR procedure applicable to Specified End Use mentioned in Customs
Notifications, i.e. apart from those pertaining to manufacturing and in respect
of those for providing output services. In case of end use, supply to the end use
recipient and the nature of the supply is to be captured in the IGCR automated module.
d. Changes in
the forms to capture the details where intended purpose is the export of goods using
the goods imported.
e. Corresponding
changes in the forms to better capture the 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 additional details such as
Sl. No. of the Notification etc.
f. In Rule 13
of IGCRS Rules, 2022, it is mentioned that reference in any rule, notification,
circular, instruction, standing order, trade notice or other order in pursuance
of the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of
Excisable Goods) Rules,1996 and any provision thereof or to the Customs (Import
of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules,
2016 and any corresponding provisions thereof or to the Customs (Import of Goods
at Concessional Rate of Duty) Rules, 2017 and any corresponding provisions thereof
shall be construed as reference to the Customs (Import of Goods at Concessional
Rate of Duty or for Specified End Use) Rules, 2022.
4. Clarifications in respect of various aspects of the
Rules:
4.1 Time period for utilisation of goods:
When time period for utilisation is specified in the
notifications, the said time period will apply. If not specified, the time period
of six months will apply.
Further, multiple representations have been received
in the Board regarding the inability to utilise the goods imported for intended
purpose under IGCR within the prescribed time period of 6 months. In order to facilitate
trade in such situations, a provision has been introduced wherein the jurisdictional
Commissioner can further extend such period of six months by another 3 months. However,
it is clarified that such extension can be given provided the importer furnishes
sufficient reason/s for not conforming to the time period so prescribed, which were
beyond the importer’s control.
4.2 Specified End Use:
IGCRS Rule, 2022 is also expanded to include cases where
the intended purpose is for putting the goods imported to specified end use and
not necessarily manufacturing or for providing output services. In this regard,
it is clarified that:
a. Procedure of
intimation, generation of a unique IGCR Identification Number (IIN), import of the
goods, submission of bond, maintenance of records, filing of monthly statement or
any other procedures remains the same. The Importer shall undertake compliance to
the officer having jurisdiction over primary address specified in the Importer Exporter
Code (IEC) issued by DGFT.
b. End use may
be specified by a notification under sub-section (1) of section 25 or under section
11 of the Customs Act,1962.
c. Where the import
is undertaken for a specified end use and no differential duty is involved, the
value of the bond shall be equal to the assessable value of the goods.
d. In cases where
the intended purpose of import is supply of the goods to an end use recipient, the
importer shall supply these goods under an invoice or where ever applicable, through
an e-way bill, as mentioned in the CGST Act,2017. The description and quantity of
such goods shall be clearly mentioned by the importer.
e. The importer
shall maintain a record of all such goods supplied in a month and provide the details
in the monthly statement.
f. The restrictions
on job work are only relating to the case where it is undertaken on the goods belonging
to importer and does not apply to the end use recipient who receives the goods on
the supply and deals with it as stipulated in the notification.
4.3 Bond & Bank Guarantee:
The norms pertaining to Surety/Bank guarantee that needs
to be furnished by Importers under IGCR Rules are currently covered by Circular
No. 48/2017- Cus dated December 08, 2017, while the norms
for importers availing exemption benefit under Notifications No. 56/2000-customs,
dated May 05, 2000 or 57/2000-customs, dated May 08, 2000 is specified in para 6(ii),
(iii) & (iv) of circular 27/2016 – Cus dated June
10, 2016, as amended.
In view of the changes introduced to the procedures,
the Bank guarantee/cash security/surety shall be taken as per the following norms
for the purpose of extending the benefit under the Customs (Import of Goods at Concessional
Rate of Duty or for Specified End Use) Rules, 2022. It is also clarified that the
circular No. 48/2017-cus and the circular No. 27/2016-cus stands modified to this
extent –
|
Sl.no. |
Category of importer |
Quantum of Bank Guarantee/Cash security/Surety |
|
1 |
All importer (s) who are either a department of Central
Government or a State Government or a Union Territory or a Public Sector Undertaking,
or an autonomous institute under the said governments. |
Bank Guarantee/Cash Security-Nil Surety-Not required. (excluding cases in sl.no. 4) |
|
2 |
All importers who are Authorized Economic Operators. |
|
|
3 |
All importers who are nominated agencies for the import of gold under the
India UAE CEPA |
|
|
4 |
Designated banks nominated by RBI as well as public
sector undertakings importing under Notification no. 56/2000-customs, dated 05.05.2000
or Notification no. 57/2000-customs, dated 08.05.2000 |
Bank Guarantee/Cash Security-Nil Surety-Not required Provided- a. they have
not defaulted in following the procedure and conditions specified by DGFT; b. they have
not defaulted in payment of duty within the specified period in cases where there
was a default in export of jewellery by an exporter to whom the gold/silver/platinum
had been supplied; c. they have
not been involved in violations involving fraud or collusion or wilful mis-statement
or suppression off acts under relevant provisions of the Customs Act, 1962, the
Central Excise Act, 1944, the Finance Act, 1994, the Foreign Trade (Development
& Regulation) Act, 1992, the Foreign Exchange ManagementAct,1999 and the rules
made thereunder during the last three years; |
|
5 |
All importers who are manufacturers or service providers registered under
GST and have been filing prescribed GST returns without fail and whose annual
turnover in the preceding year is above Rs. 1 crore |
Importers shall give surety for the amount of duty foregone. However, where
the importer is not able to provide the surety, a bank guarantee/cash security
equivalent to not more than 5% of bond debit value* shall be furnished. (excluding cases in sl.no. 4) |
|
6 |
Importers not covered under sl.no 1, 2, 3, 4 or 5
above |
Bank guarantee/Cash security- not more than 25% of
the bond debit value*. |
|
* Bond debit value – Duty foregone in case of concessional
rate and assessable value of the goods in other cases. |
||
4.4 UAE – CEPA:
The Import of Gold under the India-UAE CEPA notified
vide Notification 22/2022-Customs dated April 30, 2022, as amended by Notification
43/2022 dated July 20, 2022 prescribes Tariff Rate Quotas (TRQ) and following of
IGCR Rules 2017. In this context, it is clarified that:
(i) The Importer (in most cases, the nominated agencies)
shall follow IGCRS Rules, 2022 for import of gold under the UAE – CEPA and supply
the gold to end use recipients who are TRQ holders.
(ii) The importer,
having provided a one-time intimation in Form IGCR-1 at the common portal, can generate
an IIN number and undertake multiple imports against the same. The procedure is
already elaborated in the above-referred circulars. The details of end use recipient
may be mentioned in IGCR-1.
(iii) Imports
pertaining to multiple TRQ holders can be clubbed together and imported in a single
lot. However, it is to be ensured that when filing the bill of entry, the quantities
against each TRQ holder need to be mentioned as a separate line item.
(iv) The importer
shall maintain records of the supply made to each end use recipient and shall mention
the same in the monthly statement under form IGCR-3.
(v) Importer
shall follow the IGCR procedure till its supply to end-use recipient and filing
of monthly statement.
4.5 Imports by Nominated Agencies importing gold / silver/
platinum under the schemes for replenishment or Export against supply by Nominated
agencies:
The Amendments to the Notifications 56/2000 – Customs
dt. May 05, 2000 and 57/2000 – Customs dt. May 08, 2000 governing above schemes
were made through notifications 47/2022 – Customs and 48/2022 – Customs both dated
September 07, 2022 w.e.f. October 01, 2022. Following aspects are clarified in this
regard:
I. The requirement
of Bond / BG (Bank Guarantee) stipulated in the notifications shall be said to be
have been met, if the Bond / BG prescribed under IGCR is already furnished to the
jurisdictional Customs officer. The norms for BG will continue to be governed by
para 6 (ii), (iii) and (iv) of Circular 27/2016 – Customs.
II. The importer
shall maintain the records and submit monthly statement on the common portal.
III. The end
use recipient in these cases would be an exporter.
IV. In case of
supply against replenishment or for export against supply, the end use recipient
shall also maintain relevant records and make it available to the jurisdictional
Customs officer and importer.
V. The restrictions
on job work shall only relate to a case where it is undertaken on the goods belonging
to importer and shall not apply to the end use recipient who receives the goods
on the supply and deals with it as stipulated in the notifications. For the sake
of clarity, it is reiterated that the end use recipient i.e. exporters, who are
receiving supply from the importers, are allowed to send the goods to the job worker
for further processing.
4.6 Other changes:
As a trade facilitation measure, a new Form IGCR-3A
has been notified for confirmation of consumption for intended purpose at the common
portal at any point in time for immediate re-credit of the bond by the jurisdictional
AC/DC, without waiting for the filing of monthly statement on the 10th of every
month. The details filed in form IGCR-3A shall get auto populated in the monthly
statement of the subsequent month, which has to be only confirmed by the importer.
5. The Directorate General of Systems and Data Management,
CBIC shall make necessary changes in the system and issue system advisories for
guidance and ease of understanding for the trade.
6. 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 to the email
of dircus@nic.in.
F.No. 450/28/2016-Cus-IV