To simplify and automate the procedures and to avoid the physical interference IGCRD Rules, 2017 are further amended vide Notification No.7/2022-Cus NT dated 1st Feb 2022 detailed as under:
- Amendments to Rule 3: Addition of following definitions in Rule 3
(ab) ‘Common Portal’ means the ‘Common Customs Electronic Portal’ as referred to in Section 154C of the Act.
(ac) ‘Customs Automated System’ means the Indian Customs Electronic Data Interchange System.
(ad) ‘date of Import’ means the date of the order made under Section 47 of the Act permitting clearance of such goods.
- Amendments to Rule 4: The importer who intends to avail the benefit and wants to import the goods under these rules need to ensure following:
1. Provide one time information on Common Portal online in Form IGCR-1 with following details:
- Name & Address of the importer & job worker if any (if importer directly sending the goods to job-worker from port of imports)
- Goods produced / process to be undertaken at the manufacturing facility of the importer or the job-worker or by both
- The nature & description of goods to be imported used in the manufacture of goods at the premises of the importer or the job-worker if any.
- Particulars of exemption notification applicable on such imports (in case of imports by EOU Notification No.52/2003-Cus dated 31.03.2003 to mention)
- Nature of output service rendered utilizing the goods imported and
- Intended ports of import
2. On acceptance of aforesaid information on common portal, an ‘Import of Goods at Concessional Identification No.’ (IIN) shall be generated.
In case if there is any change in the details furnished in Form IGCR-1 then the Facility to update the details is provided and such details are mandatorily required to be updated.
In view of this the existing procedure for requirement to submit manual application for one-time prior IGCRD intimation for estimated imports (for estimated one year period) to jurisdictional customs is dispensed out / discontinued w.e.f. 1st Mar 2022 and aforesaid online submission of Form IGCR-1 and obtaining online IIN to ensure.
3. Execution and submission of Continuity Bond: Existing procedure for execution of Continued Bond with BG as applicable is continued and in case of an EOU, an EOU should use its existing B-17 Bond instead of Continuity Bond as already clarified vide Customs Circular No. 29/2017 dated 17th July 2017 and 27/2018 dated 14th Aug 2018 and Circular No.50/2018 dated 6th Dec 2018 read with Notification No.1/2018-CE (NT) dated 5th Dec 2018.
- Amendments to Rule 5 Procedure to be followed by Importer: The importer who intended to avail the benefit following procedure required to be followed.
- While filing Bill of Entry mention the details of appropriate exemption notification along with IIN as obtained with following procedures of aforesaid Rule 4.
- Accordingly, the DC/ AC of Customs at the Customs Station of Importation allow the benefit of the exemption notification to the importer.
- Once BOE is cleared for home consumption the duty forgone amount will automatically get debited and the updated details of Bond will electronically made available with the jurisdictional customs authority.
- Amendments to Rule 6 Importer to maintain records: The importer shall maintain the records clearly indicating the quantity as under:
- Value of goods imported
- Date of receipt of goods imported
- Goods consumed of goods imported
- Goods sent for job work and nature of job work
- Goods received back after job-work
- Goods re-exported if any as per Rule 7
- Remaining in stock as per BOE
The records kept as above shall produce as and when required by the to the jurisdictional customs officer
- In case of non-receipt / short receipt the importer shall immediately intimate on online on common portal in Form IGCR-2.
- The importer to submit monthly statement in Form IGCR-3 online on common portal by 10th day of following month.
Earlier Quarterly IGCRD Return with similar information substituted with this monthly statement in Form IGCR-3.
Further manual import intimations submission to jurisdictional customs within 2 days after receipt of goods is also not required to submit now w.e.f. 1st Mar 2022.
An EOU importing goods under the exemption notification No.52/2003 with following the procedures as stated in Rule 5, therefore the compliances stated in Rule 6 for filing of monthly statement in Form IGCR-3 are not applicable to an EOU as the compliances of filing of monthly Form A as stated in Notification No.52/2003 read with applicable circulars by 10th day of following month stating similar information is already followed by an EOU.
EOU required to submit Form A by 10th of subsequent month and hence IGCR-3 is not required to be submitted.
- Amendments to Rule 6A Procedure for allowing imported goods for job work. –
- The importer shall maintain a record of the goods sent for job work during the month and mention the same in the monthly statement specified in sub-rule (2) of rule 6.
- The importer shall send the goods to the premises of the job worker under an invoice or wherever applicable through an e-way bill, mentioning the description and quantity of the goods.
- The maximum period for which the goods can be sent to the job worker shall be 6 months from the date of invoice or an e-way bill
- In case the importer is not able to establish that the goods sent for job work have been used as per the particulars mentioned under rule 4, the Jurisdictional Custom Officer shall take necessary action against the importer under rules 8 and 8A as demand of duty with interest.
- The job worker shall, –
- maintain an account of receipt of goods, manufacturing process undertaken thereon, and the waste generated, if any, during such process;
- produce the account details before the Jurisdictional Custom Officer as and when required by the said officer; and
- after completion of the job work, send the processed goods to the importer or to another job worker as directed by the importer for carrying out the remaining processes, if any, under the cover of an invoice or an e-way bill.
- Amendments to Rule 6B Procedure for allowing imported goods for unit transfer. –
- The importer shall maintain a record of the goods sent for unit transfer during the month and mention the same in the monthly statement specified in sub-rule (2) of rule 6.
- The importer shall send the goods under an invoice or wherever applicable through an e-way bill, as specified in the Central Goods and Services Tax Act, 2017, mentioning the description and quantity of the goods.
- The importer shall in relation to transfer of goods to another unit,-
- maintain an account of receipt of goods, manufacturing process undertaken thereon, and the waste generated, if any, during such process;
- produce the account details before the Jurisdictional Custom Officer as and when required
- after completion of the said process, send the processed goods back to the premises of the importer from where the goods were received or to a job worker for carrying out the remaining processes, if any, under the cover of an invoice or an e-way bill.”.
- Amendments to Rule 7 Re-export or clearance of un-utilized or defective goods. –
The importer who has availed the benefit of an exemption notification shall use the goods imported in accordance with the conditions specified in the concerned
- exemption notification within 6 months from the date of import and with respect to un-utilized or defective goods so imported, the importer has an option to either re-export such goods or clear the same for home consumption within the said period.
Earlier mandatory requirement of seeking permission for re-export of imported goods from Jurisdictional Customs officer is now not required to obtain.
- The importer who opts to re-export such goods as specified in sub-rule (1), shall record the details of necessary export documents in the monthly statement:
Provided that the value of such goods for re-export shall not be less than the value of the said goods at the time of import.
- The importer who opts to clear the un-utilized or defective goods for home consumption as specified in sub-rule (1), shall pay the duty along with interest on the common portal and the particulars of such clearance and the payment of duty shall be recorded by the importer in the monthly statement.
- The importer has an option to clear the capital goods imported, after having been used for the specified purpose, on payment of duty 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, at the rate fixed by the notification issued under section 28AA of the Act, on the depreciated value allowed in straight line method, as specified below, namely: —
- for every quarter in the first year @ 4%;
- for every quarter in the second year @ 3%;
- for every quarter in the third year @3%;
- for every quarter in the fourth and fifth year @ 2.5%;
- and thereafter for every quarter @ 2%.
Explanation. –
- For the purpose of computing rate of depreciation for any part of a quarter, a full quarter shall be taken into account.
(ii) The depreciation shall be allowed from the date when the imported capital goods have come into use for the purpose as specified in the exemption notification up to the date of its clearance.
- The importer shall, in relation to sub-rule (4) record the particulars of such clearance and payment of duty in the monthly statement.”
- Amendments to Sub-Rule (1) & (2) of Rule 8:
In the event of any failure on the part of the importer to comply with the conditions specified in sub-rule (1) of rule 7 or where the payment referred in sub-rule (3) and (4) of rule 7 is not paid or short paid, the Deputy Commissioner of Customs or the Assistant Commissioner of Customs , as the case may be, having jurisdiction over the premises where the imported goods shall be put to use for manufacture of goods or for rendering output service shall take action by invoking the bond to initiate the recovery proceedings of the amount equal to the difference between the duty leviable on such goods but for the exemption and that already paid, if any, at the time of importation, along with interest, at the rate fixed by the notification issued under section 28AA of the Act, for the period starting from the date of import of the goods on which the exemption was availed and ending with the date of actual payment of the entire amount of the difference of duty that the importer is liable to pay.”;
Sub-rule (2), for the words “the Jurisdictional Deputy Commissioner of Customs, or, as the case may be, the Assistant Commissioner of Customs”, the words “the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be,” shall be substituted.
- In the said rules, for the Form, the following Forms shall be substituted, namely: –
- Form IGCR-1 (One-time Prior Information to be provided by Importer) u/R 4(1)
- Form IGCR-2 (Intimation regarding non-receipt / short receipt of goods imported) u/R 6(1)
- Form IGCR-3 (Monthly Statement) u/R 6(2)
It is pertinent to note that EOU to follow the procedures as stated in IGCRD Rule 5 or any other rule as stated in Rule 5 only for duty free import of goods as stated in Notification No.52/2003-Customs Dated 31.03.2003 as amended time to time.
Accordingly, w.e.f. 1st Mar 2022 an EOU also required to submit online Form IGCR-1 for prior information of imports under IGCRD and obtain IIN. Also, to mention said IIN with Bond details while filing BOEs for imports under IGCRD with exemption notification number Notification No.52/2003-Cus Dated 31.03.2003 as amended time to time. Also, no need to submit manual import intimations after receipt of imported goods within 2 days now. Rest of the amendments of other rules except Rule 5 are not applicable to an EOU.
- Further clarifications provided vide recent Circular No.4/2022-Cus dated 27th Feb 2022:
- The common portal is the one and as already notified and accessible at the URL: icegate.gov.in
- The various forms have been standardized and notified for the purpose of electronic submission of details.
- 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.
- A monthly statement would to be submitted by the importer on the common portal
- A procedure for inter-unit transfer of the imported goods has been provided.
- An electronic option for voluntary payment through the common portal, as specified in the Rules, is also being developed for implementation.
- Transitional measures:
- Earlier Stock of goods imported under IGCR: Such stock which is 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.
- Existing Bond: 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.
- Existing procedure to follow by importers till 13th Mar 22: 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.
- EOUs to follow existing procedures till completion of system automation: 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 existing procedures can continue by the EOUs for import of goods in lieu of generating IIN in the system.
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 at URL:
https://www.cbic.gov.in/htdocs-cbec/home_links/enquiry-points-home
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