Article on ‘ Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022’ , by CS Anita Patil, Sr. Advisor, Bizsolindia Services Pvt Ltd.(November 2022)

A. BACKGROUND:

  • Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 (hereinafter referred to as IGCRS Rules, 2022) notified vide Notification 74/2022-Customs (N.T.) dated 09th Sept 2022 superseding the existing Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 along with clarifications provided on this vide Circular No.18/2022-Customs dated 10th Sept 2022.
  • These rules are effective from 10th September
    • CBIC had earlier introduced significant changes simplifying and automating the procedures for IGCRD Rules 2017 vide Notification 09/2021-Customs (N.T.) dated 01.02.2021 followed by Circular 10/2021 dated 17.05.2021 and Notification 07/2022-Customs (N.T.) dated 01.02.2022 followed by Circular 04/2022 dated 27.02.2022. The online functionality has also been made available on the ICEGATE Portal except for EOU importers.
    • 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 IGCRD Rules, 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 and useful to
    • 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 12.2017, 10/2021 dated 17.05.2021 and 04/2022 dated 27.02.2022, will continue and be in effect, unless specifically modified by recent Circular 18/2022.
    • Accordingly, the clarifications provided in para

      6.4 for an EOU in earlier Circular No.04/2022 dated 27th Feb 2022 will continue and be in effect as there is no modification or any clarification provided in the recent Customs Circular No.18/2022 dated 10th Sept 2022 the para reproduced below for ready reference:

      Para 6.4 of Circular No.04/2022 dated 27th Feb 22 w.r.t. EOU

      Currently there is a requirement for EOUs to follow Rule 5 of Customs (IGCRD) 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, procurement certificates can continue to be submitted by the EOUs for import of goods in lieu of generating IIN in the system.

      1. The salient changes included in Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022:
        1. Clarifying the time period of utilization to be the time period for compliance and bringingin a provision to extend the said period in certain cases for the reasons beyond the importer’s
        2. 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. IGCR-3A introduced for this
        3. Expanding the scope of the IGCR procedure applicable to Specified End Use mentioned in Customs Notifications, 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.
        4. Changes in the forms to capture the details where intended purpose is the export of goods using the goods
        5. Corresponding changes in the forms done so as 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 No. of the Notifications etc.
      2. Clarifications covered in respect of various aspects of the Rules:
      1. Time period for utilization of goods:

      There was ambiguity w.r.t. utilization of goods imported under IGCRD as per earlier amended IGCRD Rules, 2017 read with circulars the same was restricted to six months without considering the period mentioned in respective exemption notifications.

      Now it is clarified that When time period for utilization is specified in the respective notifications, the said time period will apply. If not specified, the time period of six months will apply.

      Also, a provision has been introduced wherein the jurisdictional Commissioner can further extend such period of six months by another 3 months provided that the importer furnishes sufficient reason/s for not conforming to the time periodso prescribed, which were beyond the importer’s control.

       

      1. Specified End Use:

      IGCRD 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:

      1. Procedure of intimation in Form IGCR-1, generation of a unique IGCR Identification Number (IIN), import of the goods, submission of bond, maintenance of records, filing of intimation of non-receipt or short receipts in the Form IGCR-2, filing of monthly statement in IGCR-3 or any other procedures remains the The Importer shall undertake compliance to the officer having jurisdiction over primary address specified in the Importer Exporter Code (IEC) issued by DGFT. Formats of Forms IGCR-1, IGCR-2, IGCR-3 are revised which requires more details to be filled up by the importer.
      2. End use may be specified by a notification under sub-section (1) of section 25 or undersection 11 of the Customs Act,1962.
      3. 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
      4. 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 wherever applicable, through an e-way bill, as mentioned in the CGST Act, The description and quantity of such goods shall be clearly mentioned by the importer.
      5. The importer shall maintain a record of all such goods supplied in a month and

      provide the details in the monthly statement IGCR-3.

      1. 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
      1. Bond & Bank Guarantee:

      In view of the changes introduced to the procedures, revised provisions for 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 SpecifiedEnd 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 as under:

       

      Sr.

      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 anautonomous institute under

      the said governments.

       

       

       

       

       

       

       

       

       

      Bank Guarantee/Cash Secu- rity-NilSurety-Not required.

       

      (excluding cases in sl.no. 4)

      2 All importers who are Authorized Eco- nomicOperators.
      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 pub- lic sector undertakings importing under Notifica- tion no. 56/2000- customs, dated 05.05.2000 orNo- tification no. 57/2000-customs, dated 08.05.2000 Bank Guarantee/Cash Securi- ty-NilSurety-Not required

       

      Provided-

       

      a.       they have not defaulted in following the procedure and conditions speci- fied by DGFT;

      b.      they have not defaulted in payment of duty within the specified period in cases wherethere was a default in ex- port of jewellery by an exporter to whom the gold/silver/platinum had been supplied;

      c.       they have not been involved in viola- tions 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 Man- agement Act,1999 and the rules made thereunder during the last three years;

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      5 All importers who are manufacturers or servicepro- viders registered under GST and have been filing prescribed GST returns without fail and whose an- nual turnover in the preceding year is above Rs. 1 crore Importers shall give surety for the amount of duty foregone. However, where the im- porter is not ableto 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 undersl.no 1,2,3,4 or 5 above Bank guarantee/Cash security- not more than25% of the bond debit value*.

       

      * Bond debit value – Duty foregone in case of concessional rate and assessable valueof the goods in other cases.

       

      • UAE – CEPA:

      The Import of Gold under the India-UAE CEPA (Comprehensive Economic Partnership Agreement) notified vide Notification 22/2022-Customs dated 30-04-2022, as amended by Notification 43/2022 dated 20-07-2022 prescribes Tariff Rate Quotas (TRQ) and following of IGCR Rules 2017. In this context, it is clarified that:

       

      1. 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
      2. 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 The procedure is already elaborated in the above-referred circulars. The details of end use recipient may be mentioned in IGCR-1.
      3. Imports pertaining to multiple TRQ holders can be clubbed together and imported in a single 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.
      4. 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.
      5. Importer shall follow the IGCR procedure till its supply to end-use recipient and filing of monthly

       

      1. 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. 05.05.2000 and 57/2000– Customs dt. 08.05.2000 governing above schemes were made through notifications 47/2022

      – Customs and 48/2022 – Customs both dated 07.09.2022 w.e.f. 01.10.2022. Following aspects are clarified in this regard:

      1. The importer shall maintain the records and submit monthly statement on the common
      2. The end use recipient in these cases would be an
      3. 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
      4. 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 e. exporters, who are receiving supply from the importers, are allowed to send the goods to the job worker for further processing.

       

      1. Other changes:

      Introduction of New Form IGCR-3A:

      IGCR 3A introduced for facilitating immediate re-credit of the bond by the jurisdictional AC/DC, without waiting for the filing of monthly statement. 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.

      It is further clarified that, CBIC shall make necessary changes in the system and accordingly will issue system advisories for guidance and ease of understanding for the trade. Accordingly, revised advisories for aforesaid changes with clarification on readiness of automation for an EOU importers is awaited till time the existing procedures to be followed.

       

      For more details and detailed procedures, you are requested to go through the Notification No.74/2022-Customs (N.T.) dated 9th Sept 2022 in which “Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022” i. e. IGCRD Rules 2022 notified along with Circular No.18/2022-Customs dated 10th Sept 2022.

       

      Formats of all revised forms as Form IGCR-1 (One-time prior intimation), IGCR-2 (Intimation for non-receipt / short receipts), Form IGCR-3 (Monthly Statement) & Form IGCR-3A (For updation of Details of goods consumed for immediate recredit of the bond

      which shall become a part of the monthly statement of the subsequent month) are stated as under:

       

      Form IGCR- 1

      [See rule 4(1)]

      Prior information to be provided by the importer

      PART-A

      1. Details of importer
      Sl. No. Information Details
      1 I.E.C No.
      2 Name of the importer:
      3 Principal address of the importer
      4 GSTIN
      5 Port of import
      1. Goods imported at concessional rate intended to be used at premises of importer or job worker or for a specified end use:
      Sl.

      No.

      CTH Description of goods imported to be used
      (1) (2) (3)

       

      • The notification benefit availed and intended purpose
      Sl.

      No.

      Notification number S.no in the notification Type of intended purpose Manufacturing
      * Description of goods intended to be manufactured by use of raw materials or components imported at concessional rate of

      duty

      (1) (2) (3) (4) (5)

       

       

      Imported for

      Specified end use

      When intended purpose is export of goods When supplied to an end use recipient Provision of output service
      Description of specified end use CTH Description of goods intended to be exported Details of end use recipient S   A C

      Code

      Description of service intended to be provided by use of raw materials or components im- ported at concessional

      rate of duty

      (6) (7) (8) (9) (10) (11)

      *: The importer may choose one among the following –

      (1) Manufacturing (2) Specified End Use (3) Export of goods (4) Supply to end use recipient

      (5) Provision of output service

      1. Manufacturing Facilities intended to be used for IGCR by Importer
      Sl.No. GSTIN Address of the manufacturing unit Goods produced or process undertaken at the manufac- turing facility of the importer.
      (1) (2) (3) (4)
      1. Manufacturing facilities intended to be used for IGCR by job worker (in case of more than one job worker, above information should be furnished in respect of each job worker)
      Sl.No. GSTIN of Job worker or PAN of job worker Address of the manufacturing unit of job worker Goods produced or process undertaken at the manufac- turing facility of the job work- er.
      (1) (2) (3) (4)
      1. Manufacturing facilities intended to be used for IGCR in cases of unit transfer
      Sl.No. GSTIN of the unit Address of the manufacturing unit Goods   produced or

      process

      under- taken at the manufac-

      facility turing

      (1) (2) (3) (4)
      1. Details of the end use recipient

       

      Sl.No. GSTIN of end use recipient Address of the unit of end use recipient Goods produced or process undertaken at the manufacturing fa- cility of the end use re- cipient Details of exports, if any, to be made by end use recipient, utilising

      goods imported

      (1) (2) (3) (4) (5)

      PART-B

      (To be filled after submission of Part A) Bond details

       

      1 Continuity bond no. and date
      (a) Amount of Bond
      (b) Balance amount of Bond

      Note:- The amount of bond will be the estimated duty foregone during the financial year

       

      Form IGCR- 2

      [See rule 6(1)]

      Intimation regarding non-receipt of goods imported to be provided by the Importer

      1. IIN:                              
      2. Details of goods not received
      Sl. No. Bill of entry No. BE

      date

      Port of import Invoice S.No. Item S.No. Quantity not received Amount paid
      (1) (2) (3) (4) (5) (6) (7) (8)

       

      Form IGCR -3

      [See rule 6(2)]

      MONTHLY STATEMENT for                    , 20   

      1. IIN :
      2. Details of goods imported, consumed, re-exported, pending for use or cleared on payment of duty during the month:
      BE

      Number

      B     E

      Date

      Port of import Invoice S.No. I t e m S.No. Description of goods Specified purpose Quantity of import Date of clearance
      (1) (2) (3) (4) (5) (6) (7) (8) (9)

      Contd…

      Value of

      goods

      Duty foregone Quanti- ty received Date of receipt of goods Quan- tity not re-

      ceived

      Quantity used for intended purpose Used for

      Manufac- turing goods that are sup- plied domestical- ly

      [out of (18)]

      Supply to end use recipient [out of

      (18)]

      Used for

      Manufac- turing goods that are export- ed

      [out of (18)]

       

      BCD

      Other

      Cus- toms duties

      IGST Cess
      (10) (11) (12) (13) (14) (15) (16) (17) (18) (18A) (18B) (18C)

      Contd…

      Goods Re exported (Quantity) Goods cleared on payment of duty

      (Quantity)

      Quantity pending in

      stock

      Quantity pending in the importer’s premises Quantity pending with job worker or other units of the importer
      (19) (20) (21) (22)

      Job work details:

       

      BE

      Num- ber

      BE

      Date

      Port of import In- voice S.No. Item S.No. Quan- tity sent for

      J o b work

      Job worker GSTIN Deliv- ery chal- lan/e way bill Date Quan- tity used for

      intend- ed

      pur- pose and

      re- moved directly

      from the

      JW

      prem- ises

      Quanti- ty used for

      intend- ed

      purpose and received

      back at the import- er’s premises

      Quantity used

      for

      interme- diate product and

      received back

      at im- porter’s premises

      Quantity

      received at the importer’s

      premises from the JW

      without process- ing

      (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)

       

      III A. Unit transfer details:

      BE

      Num- ber

      BE

      Date

      Port of im- port In- voice S.No. Item S.No. Quan- tity sent for

      Unit trans- fer

      GS- TIN

      of the unit

      Deliv- ery chal- lan/e way bill Date Quan- tity used for

      intend- ed

      pur- pose and

      re- moved directly

      from the unit

      Quanti- ty used for

      intend- ed

      purpose and received

      back at the import- er’s premises

      Quantity used

      for

      interme- diate product and received back

      at im- porter’s premises

      Quantity

      received at the importer’s

      premises from the unit without process- ing

      (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)
      1. Re-export details:
      BE

      Number

      BE

      Date

      Port of im- port Invoice S.No. Item S.No. Quantity re-exported S   B

      No.

      SB

      Date

      SB

      Invoice S.No.

      SB Item S.No. Port of export
      (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
      1. Clearance on payment of duty:

       

      BE

      Number

      BE

      Date

      Port of im- port Invoice S.No. Item S.No. Quantity cleared Amount paid Capital goods cleared after depreciation (Yes or No) Remarks
      (1) (2) (3) (4) (5) (6) (7) (8) (9)

       

      1. Supply to end use recipient:
      BE

      Number

      BE

      Date

      Port of im- port Invoice S.No. Item S.No. Quantity sent to end use recipient GSTIN of

      end use recipient

      Delivery

      challan/e way

      bill

      Date IEC of the end use recipient (if applicable)
      (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

       

      Contd..

      Nature of Supply ( choose one of the following*) Replenishment Authorisation Detail #
      (11) (12)

      * Replenishment; Tariff Quota ; Export against supply ; # only in case of Replenishment

      1. Where the intended purpose is export, either by the importer or by the end use recipient:

       

       

       

       

       

       

       

       

       

       

       

       

      BE

      Num- ber

      BE

      Date

      Port of im- port In- voice S.No. Item S.No. Whether exports are by end use recipient

      (yes/ no)

      GSTIN

      of end use recipient

      Delivery challan/e- way bill [when

      supplied to end use recipient]

      Quantity of import- ed inputs

      utilised in the goods exported

      SB

      No.

      SB

      Date

      Port of export
      (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)

       

      Contd..

      SB

      Invoice S.No.

      SB       Item S.No. Description of goods export- ed Quantity Exported Export under

      Replenish- ment (Y/N)

      BRC Received (Y/N) Additional Remarks
      (13) (14) (15) (16) (17) (18) (19)

       

      Form IGCR -3A

      [See rule 6(2)]

      Details for                   , 20   

      1. IIN:
      2. Details of goods imported, consumed, re-exported, pending for use or cleared on payment of duty during the month:

       

      BE

      Num- ber

      BE

      Date

      Port of import Invoice S.No. Item S.No. Description of goods Specified purpose Quantity of import Date of clearance
      (1) (2) (3) (4) (5) (6) (7) (8) (9)

       

      Contd…

       

       

      Value of

      goods

      Duty foregone Quanti- ty

      re- ceived

      Date of receipt of

      goods

      Quanti- ty not

      re- ceived

      Quan- tity used for

      i n  – te n d – ed

      p u r – pose

      Used for

      Manufac- turing goods that are sup- plied domestical-

      ly

      [out of (18)]

      Sup- ply to end use

      recip- ient

      [out of

      (18)]

      Used for

      Manufac- turing goods that are

      exported [out of (18)]

      BCD Other

      Cus- toms duties

      IGST Cess
      (10) (11) (12) (13) (14) (15) (16) (17) (18) (18A) (18B) (18C)

       

      Contd…

      Goods Re exported (Quantity) Goods cleared on payment of duty

      (Quantity)

      Quantity pending in stock
      Quantity pending in the importer’s premises Quantity pending with job worker or other units of the importer
      (19) (20) (21) (22)
      • Job work details:
      BE

      Num- ber

      BE

      Date

      Port of im- port In- voice S.No. Item S.No. Quan- tity sent for

      J o b work

      Job worker

      GS- TIN

      Deliv- ery chal- lan/e way bill Date Quanti- ty used for intend-

      ed

      purpose and re-

      moved directly f r o m the

      JW

      p re m – ises

      Quanti- ty used for intend-

      ed

      purpose and

      re- ceived

      back at the import- er’s premises

      Quantity used for

      intermedi- ate

      pr o du c t and

      received back at

      importer’s premises

      Quantity received at the import- er’s premises from the

      JW with- out

      process- ing

      (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)

      IIIA. Unit transfer details:

       

      BE

      Num- ber

      BE

      Date

      Port of im- port In- voice S.No. Item S.No. Quan- tity sent for

      Unit trans- fer

      GS- TIN

      of the unit

      Deliv- ery chal- lan/e way bill Date Quan- tity used for

      i n – tended

      pur- pose and

      re- moved direct- ly

      from the unit

      Quanti- ty used for

      intend- ed

      purpose and

      re- ceived

      back at the import- er’s premis- es

      Quantity used for

      interme- diate

      pro duc t and

      received back at

      importer’s premises

      Quantity received at the

      import- er’s premises from the

      unit without process- ing

      (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)

       

      1. Re-export details:
      BE

      Num- ber

      BE

      Date

      Port of im- port Invoice S.No. Item S.No. Quantity re-export- ed S    B

      No.

      S      B

      Date

      SB

      Invoice S.No.

      SB Item S.No. Port of export
      (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
      1. Clearance on payment of duty:
      BE

      Num- ber

      BE

      Date

      Port of import In- voice S.No. I t e m S.No Quantity cleared Amount paid Capital goods cleared after depreciation (Yes or No) Remarks
      (1) (2) (3) (4) (5) (6) (7) (8) (9)
      1. Supply to end use recipient:
      BE

      Number

      BE

      Date

      Port of im- port Invoice S.No. Item S.No. Quantity sent to end use recipient GSTIN of

      end use recipient

      Delivery

      challan/e way

      bill

      Date IEC of the end use recipient (if applicable)
      (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

      Contd..

      Nature of Supply ( choose one of the following*) Replenishment Authorisation Detail #
      (11) (12)
      • Replenishment ; Tariff Quota ; Export against supply ; # only in case of Replenishment
      1. Where the intended purpose is export, either by the importer or by the end use recipient:
      BE

      Num- ber

      BE

      Date

      Port of im- port In- voice S.No. Item S.No. Whether exports are by end use recipient

      (yes/no)

      GSTIN

      of end use recip- ient

      Delivery challan/e- way bill [when supplied to end use

      recipient]

      Quantity of import- ed inputs utilised in the goods exported SB

      No.

      SB

      Date

      Port of export
      (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12)

      Contd..

      SB

      Invoice S.No.

      SB Item S.No. Description of goods exported Quantity Exported Export under

      Replenishment (Y/N)

      BRC Re-

      ceived (Y/N)

      Additional Remarks
      (13) (14) (15) (16) (17) (18) (19)

       

      ***The requirement of Bond / BG (Bank Guarantee) stipulated in the notifications shall be said to 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 –

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