Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2021: IGCR, 2017 Customs Rules changed
The Government of India recently brought changes to the Customs (Imports of Goods at Concessional Rate of Duty) rules, IGCR 2017 to boost trade facilitation. This was done through the Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2021.
What are the major rules changed?
The absence of the newly rules had constrained Indian industries, especially, the MSMEs. It mainly affected those that did not have in-house manufacturing facility. Earlier, the concessional customs duty on imports was not provided to those who did not have an in-house manufacturing facility. Now, under the new rules they can now import goods at concessional rates, get the job done in other manufacturing units. However, this has still not been extended to certain sectors such as gold, diamond, precious metals.
The new rules will now allow import of capital goods at concessional customs duty. Capital goods are physical assets used by a company to manufacture products and services for later use. They are not finished goods. But are used to make finished goods. Tools, machinery, building, equipment are capital goods.
The new rules basically lay down procedure and manner in which an importer can avail benefit of concessional customs duty on import of goods for domestic production.
IGCR rules, 2017
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.
Month: Current Affairs - May, 2021
Category: Legal & Constitution Current Affairs
|View All E-Books: Recent Release|