Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules , 2021

Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules , 2021

Part of: GS Prelims and GS-III – Economy

In news

• The Government has brought changes in the existing Customs (Import of Goods at Concessional Rate of Duty) Rules, IGCR 2017 to boost trade facilitation.
• The IGCR, 2017 lay down the procedures and manner in which an importer can avail the benefit of a concessional Customs duty on import of goods required for domestic production of goods or providing services.

Key takeaways

• Changes have been introduced by the Central Board of Indirect Taxes and Customs.
• One major change is that the imported goods have been permitted to be sent out for job work. Importers can now get the final goods manufactured entirely on job work basis. 
• The absence of this facility had earlier constrained the industry, especially the Micro, Small and Medium Enterprises sector, which did not have the complete manufacturing capability in-house.
• However, some sectors such as gold, jewellery, precious stones and metals have been excluded.
• Another major change is to allow those who import capital goods at a concessional Customs duty to clear/re-sell them in the domestic market on payment of duty and interest, at a depreciated value. 
• This was not allowed earlier and manufacturers were stuck with the imported capital goods after having used them as they could not be easily re-exported.