Last updated: September 19th, 2022 6:35 PM

The Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2022

The Ministry of Finance on 1^st February 2022 published the Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2022 to make certain amendments to existing Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. These changes come into effect from 1st March 2022. The amendments are aimed at simplifying the procedures with a focus on automation and making the entire process contactless. Know more about the Union Budget 2022: Changes in Customs

Synopsis of Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2022

Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2022 prescribe the submission of the necessary details electronically, through the common portal.

• The various forms have been standardized and notified for electronic submission of details.
• Individual transaction-based permissions and intimations, such as - an 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 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

Customs Shipping Bill Post Export Conversion Regulations 2022

Procedure to be followed by an importer

The procedure to be followed by an importer is notified through The Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2022, and the same are described below:

A one-time prior intimation of intent to avail IGCR Benefit - Rule 4

According to Rule 4 of The Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2022, An importer who intends to import goods at a concessional rate of duty shall give one-time prior information of such goods being imported. The following information needs to be provided on the common portal in form IGCR-1.

• The name and address of the importer and his job worker
• The goods produced or process undertaken at the manufacturing facility of the importer or his job worker, if any, or both
• The nature and description of goods imported used in the manufacture of goods at the premises of the importer or the job worker
• Particulars of the exemption notification applicable on such import
• Nature of output service rendered utilizing the goods imported
• The intended port(s) of import

Know more about Customs Duty

IGCR Identification Number (IIN)

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. The importer also has an option to update the form IGCR-1 in case of any change in the details.

Import of goods at a concessional rate - Rule 5

According to Rule 5 of the Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2022, The importer shall mention the IIN and the continuity bond number and details while filing the bill of entry at the port of import.

• Based on the same, the Deputy Commissioner or Assistant Commissioner of Customs at the port of importation shall allow the benefit of the exemption notification.
• Once a bill of entry is cleared for home consumption, the bond submitted by the importer gets debited automatically in the customs automated system. These details shall be available to the jurisdictional customs officer through the common portal.

Receipt of goods

Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2022 cover the receipt of goods in three scenarios:

• Goods are received on the premises of the importer
• Goods are directly received at the premises of the job–worker
• Goods are partly received at the importer’s and partly sent to the job worker’s premises

In all such cases, the requirement of intimating the receipt of the goods has been done away with. However, any non-receipt or short-receipt of the goods shall be intimated by the importer immediately on the common portal through form IGCR2. This intimation shall be based on the IIN and details shall be provided against each bill of entry, invoice, and item

Monthly statement and maintenance of account – Rule 6

Monthly statement

According to Rule 6 of the Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2022, Instead of the quarterly return prescribed earlier, the importer shall submit a monthly statement by the tenth day of the following month, on the common portal in the form IGCR-3 prescribed

Importer to maintain records

As per Rule 6 of the Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2022, The importer also maintains an account concerning the goods imported. The importer shall maintain an account in such a manner to indicate the quantity

• Value of goods imported
• Date of receipt of the goods imported to the relevant premises
• Quantity of such goods consumed;
• Quantity of goods sent for job work, nature of job work carried out;
• Quantity of goods received after job work;
• Quantity of goods re-exported
• Quantity remaining in stock, according to Bills of Entry

Procedure for allowing imported goods for job work - Rule 6A

As per the Rule 6A of the Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2022, If the goods are first received at the premises of the importer and are then to be sent for job work, the importer shall send the goods under the cover of a through an e-way bill specifying the description and quantity of goods.

• It is clarified that the requirement of intimation when sending goods for job work, has been done away with.
• The importer shall maintain a record and mention such details in the monthly statement.
• The maximum period for which the goods can remain with the job worker shall be six months from the date of invoice or e-way bill

Procedure for allowing imported goods for unit transfer-Rule 6B

A separate provision has been included for unit transfer of goods, where goods are sent to a different unit of the same importer. The goods shall be sent under an invoice or wherever applicable, an e-way bill, mentioning the description and quality of goods.

Re-export or clearance of unutilized or defective goods –Rule 7

In case an importer opts to re-export such goods, he shall record the details of export documents such as shipping bill number, shipping bill date, and the port of export. These details shall be specified against the bill of entry, invoice, and item details of the goods imported. In case the importer intends to clear the un-utilized or defective goods on payment of requisite duty and interest, the import duty payable would be equal to the difference between the duty leviable on such goods but for the exemption availed and that already paid at the time of importation, along with interest rate as fixed by notification under section 28AA.

Sl.No	Prescribed Date	import duty
1	For every quarter in the first year	4%
2	For every quarter in the second year	3%
3	For every quarter in the third year	3%
4	For every quarter in the fourth and fifth year	2.5%
5	Thereafter for every quarter	2%

• The period for the calculation of interest would start from the date of import of such goods and end with the date of actual payment.
• An option is available to the importer to clear the capital goods imported, on payment of duty along with interest, at a depreciated value, after they have been put to use.
• The particulars of such clearances and duty payments shall be recorded by the importer in the monthly statement.
• The importer shall pay such duties and interest using a manual challan at the port of import. An option for voluntary payment through the common portal, as specified in the Rules, is under development for being enabled shortly

Penalty for contravenes of Rules for Re-export

An importer or the job worker who contravenes the provisions of Rule 7 of Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2022, shall be liable to a penalty as prescribed in rule 8A. Rule 8A - "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.”; Click here to get the official document of CBIC 

Import Export Code (IEC)

The Import Export Code is a primary document that is necessary for commencing Import-export activities. For exporting or importing any goods or services the IE code is to be obtained.IEC has numerous benefits for the growth of the business. Certainly, you cannot ignore the necessity of IE code registration as it is mandatory. You can apply for an Import Export code through IndiaFilings and obtain it within 6 to 7 days.