Concessional Import Duty
Source : Indian Express
GS III : Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth

Why in News ?

CBIC has amended the Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules,

Key Facts

• Importers taking advantage of concessional rate of import duty will have to give prior information to Customs officers about goods being imported and also its estimated quantity and value, the Central Board of Indirect Taxes and Customs (CBIC).
• One major change that accommodates the needs of trade and industry is that the imported goods have been permitted to be sent out for ‘job work’.
• Importers who do not have any manufacturing facility can now avail the IGCR, 2017 to import goods at concessional Customs duty.
• Some sectors such as gold, jewellery, precious stones and metals have been excluded.
• Those who import capital goods at a concessional Customs duty to clear them in the domestic market on payment of duty and interest, at a depreciated value.
• The required intimations and records can be sent by email to the jurisdictional Customs officer thereby obviating any physical interface.

Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017

• It lay down the procedures and manner in which an importer can avail the benefit of a concessional duty on import of goods required for domestic production of goods or providing services.
• Job-Work Activity :
  • New Rule 6A has been inserted enabling job-work activity on imported goods (except Gold, Jewellery and articles thereof, and other precious metals or stone).
  • The maximum period for which goods can be sent to job-worker is six (6) months.
• Penalty on importer / job-worker :
  • New Rule 8A has been inserted providing for imposition of penalty on the importer / job-worker for contravention of the provisions of the IGCRD Rules.
  • The quantum of penalty under this Rule may extend upto Rs.2 lakhs as specified in Section 158(2)(ii) of the Customs Act, 1962.

Daily Current Affairs : Click Here