Recent Amendments made by the Government through Customs (Import Of Goods At Concessional Rate of Duty) Amendments Rule, 2021

Under the Union budget 2021, presented by the Finance Minister Ms. Nirmala Sitharaman in February of this year, the Government Of India has amended the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. The amended set of rules is to be known as The Customs ( Import of Goods at Concessional Rate of Duty) Amendments Rule, 2021, and is enforced from the 2nd of February, 2021. The prior rules that are the IGCR, 2017 provided the provisions for the process by which the importer is eligible for availing the perks of Concessional Rate duty on the import of required goods for the domestic production and service providing. The Government has amended the previous rules through the power provided to it by Section 156 of the Customs Act, 1962.

Major Highlights of The Customs (Import of Goods at Concessional Rate of Duty) Amendments Rules, 2021 :

• Insertion of the Clause (aa) in Rule 3 of IGCR,2017: This new provision deals with Capital Goods which are goods that have capitalized value in account books of the importer.

• Insertion of the Clause (ca) in Rule 3 of IGCR, 2017: This Insertion deals with the Job Work. The new rule is regarding the consistency of processing, treatment, or manufacturing with the notice of exemption accepted by a person on goods of an importer but there are some exceptions like gold, jewelry, and other precious metals, stones, etc.

• Substitution of Clause (e) in Rule 3 of IGCR, 2017: Under this amendment, the definition of the term ‘Manufacture ‘ which was provided in clause (e) of Rule 3 is changed with a new definition. According to the new definition, Manufacture means the processing of the inputs or raw materials, hence emerging a new product with a different character and nature.
• Substitution of Clause (f) in Rule 3 of IGCR, 2017: Under this change, the definition of ‘Output Service’ has been changed which was presented under clause (f) of Rule 3. Now, the term refers to the supply of services, minus the sales, service, and utilization of imported goods.
• Substitution of Rule 4: Under the new amendment, the provisions of Rule 4 have been replaced. The new provisions deal with the importer’s duty to give prior information. This information is regarding the manufacturing or rendering of the Output services. This information is to be furnished to the Deputy Commissioner of Customs and Associate Commissioner of Customs, whoever has the jurisdiction. This information includes the name, address, the goods produced, their nature and character, and the nature of rendered output services. 
• Substitution of Rule 6: Under the recent change, Rule 6 talks about the importer's duty regarding details of imported goods and maintaining records. The importer has to produce such records in under 2 days for purpose of manufacturing or rendering Output services. The importers have to maintain a record with information regarding quantity and value of imported goods, goods consumed, goods sent for Job Work, goods received after Job Work, goods re-exported, and quantity of remaining stock.
• Insertion of Rule 6A: A new rule 6A is framed which specifies the process for allowing the imported goods for Job Work.
• Addition of new Sub Rule (3) in Rule 7: A new sub-rule (3) had been added to Rule 7. The new provision deals with the importer’s duty to use the imported goods only after taking prior permission from the Deputy Commissioner of Customs or the Assistant Commissioner of Customs. This rule also provides for rates of depreciation for Straight Line Method which is 4 % for each quarter for the first financial year, 3% each quarter for the second and third Financial Year, 2.5% each quarter for the fourth and fifth Financial Year, and 2% each quarter after that.
• Insertion of Sub Rule (2) in Rule 8: The insertion of new sub-rule (2) deals with the obligation on the importer to use imported goods according to the condition of the Exemption Notification. 
• Insertion of Rule 8A: Rule 8A has been newly inserted and deals with the penalty for the importers or job workers violating any provisions mentioned in the said rules and regulations. The offender will be liable under Section 158(2)(ii) of the Act.

Conclusion:

The aforementioned amendments were made in pursuance of the declaration of the Finance Minister Ms. Nirmala Sitharaman in the Union Budget speech of 2021. Further, the said amendment came into force from 2nd February 2021 and is in the view of improving the business of the importers in regards to Customs duty.

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts that have been made to ensure the accuracy and correctness of the information published, White Code Legal and Tax shall not be responsible for any errors caused due to human error or otherwise.

Footnotes:

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