Legal Provisions
Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017
Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2021
Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2022
Topic Insight
Import of goods at concessional rate of duty (IGCR), the objective is to Creating an enabling environment for the promoting manufacturing by domestic industry to make them competitive globally and also make them self-reliant in furtherance of the goal of Atmanirbhar Bharat.
The importers who intend to avail an exemption notification issued under sub-section (1) of section 25 of the Customs Act, 1962 where the benefit of such exemption is dependent on the use of imported goods covered by that notification for the manufacture of any commodity or provision of output service.
Procedure to be followed
1.One-time prior intimation of intent to avail IGCR Benefit
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.
(1) 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.
(2) The importer is required to furnish a one-time continuity bond to cover all the imports undertaken under this procedure.
(3) The physical copy of the bond and bank guarantee, wherever applicable, shall be submitted by the importer to the jurisdictional officer.
(4) Upon acceptance, the jurisdictional customs officer shall approve the bond request on the Customs Automated System.
(5) The importer shall also have an option of topping up the amount of the bond and adding the details of the bank guarantee by providing bond addendum to the bond for adding bank guarantee as per the format.
2. Import of goods at concessional rate
The importer shall mention the IIN and the continuity bond number and details while filing the bill of entry at the port of import.
(1) On the basis of the same, the Commissioner of Customs at the port of importation shall allow the benefit of exemption notification.
(2) Once a bill of entry is cleared for home consumption, the bond submitted by the importer gets debited automatically.
3.Receipt of goods
Receipt of goods under 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 importer’s and partly sent to the job worker’s premises.
4. Inter-Unit transfer of goods
A separate provision has been included for unit transfer of goods, where goods are sent to a different unit of the same importer.
5. Utilization of goods for intended purpose
The importer 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 unutilized 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
Monthly statement
The importer shall submit a monthly statement by the tenth day of the following month
