Govt brings changes in existing Customs Rules, IGCR 2017 to boost trade facilitation | Daily Current Affairs 2021

Govt brings changes in existing Customs Rules, IGCR 2017 to boost trade facilitation

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The Union Government has recently brought changes in the existing Customs (Import of Goods at Concessional Rate of Duty) Rules, ICGR 2017 to boost trade facilitation.

Key Points:

  • The changes were introduced by the Central Board of Indirect Taxes and Customs.
  • The changes have been introduced through the Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2021.

IGCR rules, 2017:

  • 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.
  • These rules are for the importers who can avail the benefit of exemption notification issued under Section 25 of Customs Act, 1962.
  • The act empowers the Union Government of India to grant exemptions from payment of customs duties.

Changes in the rules:

  • The new changed rule accommodates the needs of trade and industry is that the imported goods have been permitted to be sent out for job work.
  • Earlier, the absence of this facility had constrained the industry especially those in the Micro, Small and Medium Enterprises (MSME) sector which did not have the complete manufacturing capability in-house.
  • Now, under the new rules they can now import goods at concessional rates, get the job done in other manufacturing units.
  • However, this has not been extended to certain sectors such as gold, diamond, precious stones and metals.
  • The new rules will also allow import of capital goods at concessional customs duty.
  • 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.

Note: Capital goods are physical assets used by a company to manufacture products and services for later use.

They are not finished goods but they are used to make finished goods.

Tools, machinery, building, equipment are capital goods.

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