Current AffairsEconomics

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

  • The Government has brought changes in the existing Customs (Import of Goods at Concessional Rate of Duty) Rules, IGCR 2017 to boost trade facilitation.
  • The Central Board of Indirect Taxes and Customs has introduced changes through the Customs (Import of Goods at Concessional Rate of Duty) Amendment Rules, 2021.
  • 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.
  • The Ministry of Finance in a statement said that 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.
  • The absence of this facility had earlier constrained the industry especially those in the Micro, Small and Medium Enterprises sector which did not have the complete manufacturing capability in-house.
  • The Ministry further said that importers who do not have any manufacturing facility can now avail the IGCR, 2017 to import goods at concessional Customs duty and get the final goods manufactured entirely on job work basis.
  • However, some sectors such as gold, jewellery, precious stones and metals have been excluded.
  • The Ministry also said that another major incentive now provided is to allow 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.
  • 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.
Tags: Current Affairs, Economics

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November 2021
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